Jan 31 2011 |
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Insurance companies flooded by claims
By By IBRAHIM NAFFEE JEDDAH: More than 9,000 vehicle owners affected by the recent flood disaster in Jeddah are fighting for compensation from car insurance companies that are reluctant to pay out as they say damage from natural disasters is not covered.Insurance industry sources told Arab News Monday that they did not expect the issue to be settled soon.
Meanwhile, sources at the Jeddah Chamber of Commerce and Industry 's ( JCCI ) transport committee said the number of damaged cars due to the disaster range between 7,000 and 9,000.
He told Arab News that while car owners and rental companies were demanding compensation, the insurance companies were not willing to pay out.
He added 400 cars owned by rental companies along Palestine Road were badly damaged.
Al-Basami said due to rising demand, four-wheel drives were not available for rent now.
"The residents of Jeddah opted to rent this type of cars despite their high prices after their small cars were damaged by the rains and floods," he said.
He, however, added that the rental prices of small cars were the same as demand for them had remained stable.
Meanwhile, insurance companies say they expected their customers to ask for extra insurance against natural disasters following flooding disasters in November, 2009.
"We expected our customers to choose insurance against natural disasters, especially as more than 11,000 cars were destroyed in the floods of 2009 and more than 10,000 in the recent rains and floods," an industry source told Arab News.
Ibrahim Yousef Al-Ramel, CEO of an insurance company and member of the JCCI 's insurance committee, told Arab News that it was too early to give the exact number of damaged cars.
"Committees are still counting the losses and the insurance companies are busy estimating the amount of compensation," he said.
On the other hand, Hisham Muhammad Al-Sharif, deputy CEO of insurance company Al-Taouniya, expected compensation to surpass 2009 levels, which were over SR15 million.
© Arab News 2011
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