Dec 21 2011 |
more articles from
|
Insurance companies dispute new SAMA rule
By By Muhammad Al-Abdullah DAMMAM - Insurance companies have condemned the new unified document for compulsory vehicle insurance as unworkable. The criticism is over a clause in the document regarding the reclaiming of damages from drivers responsible for accidents.The Saudi Arabian Monetary Agency document states that "insurance companies should pay the compensation first to the third party then reclaim their money from the driver or the insured responsible for the accident."
However, the insurance companies say that it would be practically impossible to reclaim money from any driver after a crash. Sources say "many insurance companies have now lodged formal complaints regarding the document, but SAMA has yet to respond."
However, supporters of the document claim "the criticisms are not legitimate because insurers should be responsible for paying compensation even if the driver or the insured is responsible for the accident."
They also insist the document meets the needs of citizens and insurance companies, and is much clearer than the previous governing document.
Insurance companies often have to pay out as much as SR10 million in compensation and have recently increased rates by 10-25 percent in order to cover the amount of blood money which ranges between SR100,000-SR300,000.
However, it has been pointed out that under the document insurance companies will have the right to reclaim their money from the driver through legal channels but only after first paying compensation to the third party.
The new unified document for compulsory vehicle insurance will become effective once it has been published on the SAMA website.
Zawya Comment Policy
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Comments By Our Users (2)
This is a forward looking law.
Insurance is about personal protection when "shit happens". You pay premiums for years and years with no claims.
And when claims happen, insurance companies try to weasel out of their responsibilty.
This law is in the right direction.
Post Your Reply
In real terms 3rd party insurance is all about to protect/cover the insured person from paying any damages to the 3rd party from his/her own pocket in case of any accident. If everything will be born by the insured party in this case, then who will go to insurance companies who are already collecting premiums at a very high rate (no matter one got such accident or not). The core purpose of the insurance by the isnurance companies is to provide a safeguard rather providing a adjustment services like a collector/coordinator between the two parties.
Post Your Reply
Copyright © 2012 Zawya Ltd. All rights reserved. |
provided by www.zawya.com |
Post Your Comment