MANAMA: The Central Bank of Bahrain has issued a resolution on the unified ‘Own Damage’ Motor Insurance Policy (the comprehensive insurance policy).
It is similar to the resolution regarding the Unified Compulsory Third-Party Motor Insurance Policy, that has unified procedures on dealing with claims arising from the compulsory third party motor policy.
Here is the comparison between the benefits of the unified own damage motor policy (comprehensive) and the previous policies:
Compulsory excess: Starts from BD50 for a vehicle valued at BD20,000 or less. In the previous policy it differs from company to company and in most policies starts from BD100 for vehicles valued between BD10,000 and BD20,000.
Additional excess: Starts from BD50 for a vehicle valued at BD20,000 or less. In the previous policy starts from BD200 to BD250.
Windscreen cover: The vehicle’s windscreen would be covered, including the damage caused by weather and climate with a limit amount of BD300 after charging the applicable compulsory excess. In the previous policy it was not covered or optional with additional premiums.
Age of the driver: Excess would be charged on vehicle driven by any person who has not exceeded the age of 21 years. In the previous policy excess would be charged on vehicle driven by any person who has not exceeded the age of 25 years.
Excess related to accident caused by unknown person: BD100 in case of accident caused by unknown person. In the previous policy it starts from BD200 or BD250.
Cancellation: Upon policy holder’s request for cancellation, the refund is based on pro rata after deducting not more than BD5. In the previous policy the refund is based on table with a rate starting from 12.5 per cent refund and with no refund after eight months of the policy term.
Procedure on dealing with claims: Subject to the provisions contained in procedures on dealing with claims arising from the compulsory third-party motor policy issued in Resolution No 23 of 2016. In the previous policy it is different practice from company to company in respect of depreciation and repairing place.
Benefits: The new resolution specifies the minimum benefits of motor insurance. In the previous policy there are no minimum benefits and they differ from company to company.
Applicable depreciation: It specifies the depreciation rate based on the vehicle’s age. In the previous policy it is different from company to company.
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