The Saudi Arabian Monetary Authority (SAMA) passed orders for car insurance firms to give discounts of up to 30% to customers who have a claim-free history. 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 car 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.
10% discount on Car Insurance in Saudi Arabia
Car insurance firms will give an extra 10 percent discount to those customers who have been in their insurance for a longer period. 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.
Insurance companies will also take care of their loyal customers by giving them a comprehensive package of car insurance. The discount offer is applicable to certain conditions.
20% discount on car insurance
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. Basically, the discount proportion is only based on the time in which the customer did not report any accident or claimed to the company.
30% discount on car insurance
Similarly, if there is no claim or accident registered for a consecutive period of three years, the discount rate will be about 30 percent.
Undoubtedly, it 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 the future. This way, everyone will try to avail the new discount offer.
Is it fair to award discount only to a few drivers?
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.
In a nutshell, the new order passed by the Saudi Arabian Monetary Authority (SAMA) is a healthy and safe step for car insurance firms and car insured customers. We hope that this step brings positive changes in the form of giving healthy services and excellent protective insurance.
Source: Saudi Gazette