Saudi Arabia: Increase in car insurance fees

RIYADH: The annual car insurance premium (fee) has been increased in Saudi Arabia, causing concern to car owners.

According to Urdu News, the increase in the annual insurance premium (fee) of vehicles in Saudi Arabia has sparked a new debate, the owners are questioning what is the reason for the increase.

Sulaiman Mayoof, consultant in the insurance sector, says that car insurance is considered a stable part of the cultural, economic and national system of any country. Insurance companies were established 20 years ago, initially their packages were unorganized but now. The situation is completely different.

He further said that after the legislation, the Saudi Central Bank (SAMA) has made the insurance package offering companies bound by it.

Over the years, car insurance premiums have been on the rise, with the rationale being that accidents have increased due to congestion in big cities.

Classification is necessary because car owners complain that insurance companies are not treating them equally.

Sources of insurance companies have given three major reasons for the increase in fees due to which the minimum insurance fee has increased from 600 to 700 to 1000 riyals.

The first reason is that the cost has increased compared to the past, the second reason is that self-inflicted traffic accidents are going on and fraud is being done in this regard.

The third reason is related to the negligence of the officials of the insurance companies.

The spokesman of the insurance sector in Malik, Adel Al-Eisa, says that the main reason for the increase in the insurance package is the increase in the rate of accidents and the cost of spare parts.

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He said that the increase in third party insurance is due to the fact that the companies have suffered huge losses in the past few days, the situation has become serious due to the number of accidents and the cost of spare parts.

On the other hand, according to a report, insurance premiums increased by 2.7 billion riyals during the current year, a year-on-year increase of 28.8%.

Vehicle insurance increased by 23.7 percent, from 1.7 billion Rials to 2.1 billion Rials.

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