The General Secretary of the Emirates Insurance Association, Farid Lutfi, said, "Recently, insurance companies operating in the local market launched special initiatives in the vehicle insurance sector, in light of the effects of the emerging (Corona) virus."
He added that "the initiatives included giving customers an additional month in the insurance policy, while other companies offered discounts on insurance amounts during the extension of documents that expire."
Lotfi told «Emirates Today» that companies specialized in marketing and selling the car insurance product via the Internet, in turn, resorted to granting discounts to dealers in coordination with direct insurance companies, expecting that more companies will engage in this initiative, during the coming period, in light of the societal contribution.
He pointed out that the association encourages insurance companies operating in the local market to put forward such initiatives, under the current circumstances.
"Like other markets in the region, it is expected that the percentage of traffic claims with insurance companies in the auto sector will decrease while restricting traffic, and thus the costs incurred by companies for this sector will decrease," Lotfi said, noting that all dealers, whose documents are nearing Completion, contact directly with the insurance company to inquire about any discounts, or give them an additional month for free.
Dealers called on insurance companies operating in the local market to extend the validity of car documents for free, while restricting traffic, for a period of up to at least two months or six months for owners of clean records free of accidents, with the application of the pricing mechanism based on the number of kilometers traveled, due to the implications of the virus « Corona ».
Expectations that the percentage of traffic claims among insurance companies in the auto sector will decrease.