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Bank guarantee reduced the number of insurance companies Featured

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MUHAMMAD HUMAIDAN- Adnan Jamil Khoja a member of the Insurance Committee  in Chamber of Commerce and Industry in Jeddah Assured us that a number of insurance companies in the Saudi market resorted to emerging to be larger companies to be able to meet customer requirements,

and to meet its obligations to SAMA and its  guarantees . He explained that the obligation of a bank guarantee of  200 million riyals  reduced the number of insurance companies from 130 companies to 30 companies, expecting that number drops to below 20, especially as there are news in the market about negotiations between number of medium-sized companies in this aspect. And insurance companies of the delayed payment of deposits, especially with regard to blood money and human injuries resulting from traffic accidents, often a delay in reference to the length of the litigation and determination of heirs. He said: «the litigation time-consuming, especially in accidents and deaths non-Saudis and their heirs in their countries, but once the verdict judicial specified the amounts required dispensing, insurance companies can not stall or delay in exchange under strict control over  them by SAMA ».

And that the value of parental for traffic accidents were previously 100 thousand riyals, and re-estimated last year to $ 300 thousand, indicating that it will be compensated heirs in all cases before the court, and that have not been resolved so far with the new estimation even if the incident and death before re-estimation.

He reported that the company" Najm"  which has  a contract with  traffic administration to preview accidents and make a draft for the picture of the accident, its work does not exceed transferring a clear picture of the incident to the traffic departments, while appreciation and knowledge of the error rate is  the job of outstanding traffic agent which in turn directs the parties of the accident to Opposition Sheikh responsible for the cases to determine the value of the reform, and therefore insurance .
And stated  that it was supposed to be there a lot of competent companies that perform the same role of Najm, as is the case in developed countries, so as not to be long waiting periods for  the company to attend to the accident site.
He pointed out that auto insurance has two  types .first is  insurance against third party and its problems are limited and clear as value is determined after the insured see traffic management and Opposition Sheikh responsible for the cases and insurance companies  must pay what is  approved by  those bodies immediately and rarely there are problems in this type of insurance, hinting The other type is the comprehensive insurance usually witnesses problems for both parties insured and the insurance company.
He added that: «in minor accidents insured trying to change the entire damaged section  as replacement of  Saddam car with a new one instead of reform, but when you damage a comprehensive car we find a controversy, especially with those who insure with a value less than the real cost of his vehicle on the market», citing the example that the amount of insurance 30  thousand riyals  and the value of the car 50 thousand  Riyals , noting that the company in this case would move to the compensation with the  value of insurance, while the insured is  requesting the value of the car.
He suggested that the evaluation mechanisms of  car prices have not similarity applied like the case  in advanced countries in this aspect, indicating that prices due to estimation of  elders Opposition Sheikh responsible for the cases.
He attributed the high value insurance companies  impose on cars in the cases of buying by Selling Cars in installments or Lease -to-own method   to fears surrounding these companies, especially many of the users of leased cars or installment not take care of vehicles as it should, and thus deliberately companies  resort to raise the value of insurance ..