Recently, the Saudi Arabian Monetary Authority (SAMA) passed orders for auto insurance firms. The order basically is to give discounts of up to thirty percent to customers who have a claim-free history or no claim record in past three years. The statement is posted officially in Saudi Arabian Monetary Authority (SAMA) website. The statement is about the decision made to provide discounts by the authorities of auto insurance companies based on new criteria of pricing. The discount offer will certainly depend upon the period of years in which there is no claim listed against the insured person. Auto insurance firms will also give an extra 10 percent discount to those customers who have been in their insurance for a longer period.[irp]
This additional ten percent discount is available for only loyal insured customers who renew their expired insurance premium policies from the same company without taking any time interval gap between the insurance premium periods. The Insurance companies will also take care of their loyal customers by giving them a comprehensive package of auto insurance. The discount offer is applicable to certain conditions. If the customer who did not have any accident or claim during the past one year, the discount rate will be up to 15 percent on customer's new insurance policy. Similarly, if there is no claim or accident registered for a consecutive period of three years, the discount rate will be about 30 percent.
Basically, the discount proportion is only based on the time in which the customer did not report any accident or claimed to the company. The order granted by the Monetary Authority of Saudi Arabia (SAMA) will be put into action soon. Head of the National Insurance Committee, Abdulaziz Abu Al-Saud stated that the step taken by the Saudi Arabian Monetary Authority (SAMA) will give confidence and encouragement to drivers who have good driving skills which will result in accident-free driving.
It will also be helpful for those drivers who had accidents in the past. Such drivers will make an extra effort to avoid smashing or crushing in future. This way, everyone will try to avail the new discount offer. The Economist, Mohammed Al-Anqari quoted the decision of SAMA and said that this will surely bring free and fair path for all accident-free drivers which is globally accepted. Any driver who holds a strong record of accidents must submit a greater premium payment.[irp]
Every driver needs to accept the traffic rules and regulations which will become a source of decrement in accidents. The insurance committee head at the Asharqia Chamber, Salah- al-Jabr, highlighted the importance of keeping the traffic records of drivers with traffic departments to help in determining the pricing. In a nutshell, the new order passed by the Saudi Arabian Monetary Authority (SAMA) is a healthy and safe step for auto insurance firms and auto insured customers. We hope that this step brings positive changes in the form of giving healthy services and excellent protective insurance.
Source: Saudi Gazette