The Insurance Authority said that it is not permissible to impose additional “tolerance” on insurance policies for holders of modern driving licenses. In the accident.
Endurance is known as “the amount borne by the insured who caused the accident”.
Two managers at insurance brokerage companies said that the companies resort to raising premiums to the upper limits mentioned in the insurance policy for the owners of modern driving licenses, in addition to imposing the maximum amount of tolerance in case they cause a traffic claim.
These measures, which are taken by insurance companies, are part of a hedge against the potential risks for this category of drivers, without prejudice to the terms and conditions contained in the document.
Driving licenses
In detail, the Insurance Authority said that it is not permissible to impose additional charges on insurance policies for holders of modern driving licenses. "The driver of the vehicle is less than 25 years old, provided he is the cause of the accident."
The agency added to «Emirates Today»: «therefore may not impose any additional charges other than what is contained in the document».
Insurance document
Adnan Elias, Sales Manager of Fidelity Insurance Services, said that according to the insurance policy and provisions, the insured causing the accident is charged 10% of the compensation amount, if the driver is under 25 years old. For drivers over the age of 25 with modern driving licenses, insurance companies are taking steps to hedge against this category. ”
Elias added that «insurance companies resort to raise premiums to the upper limits mentioned in the insurance policy, for this category of drivers, especially those who do not have driving licenses from their countries», pointing out that «in addition to the upper limit of the amounts of tolerance if they cause Traffic claim ».
He said that «part of the companies refrain from providing comprehensive insurance for this category of drivers, and content with the insurance policy (against others), while other companies provide comprehensive coverage, especially if provided with documents showing the driving experience owned by the driver in his country», pointing to “Pricing policies in the local insurance market vary from company to company, depending on their financial results and risk tolerance.”
He pointed out that «the prices of vehicle insurance in the local market witnessed a decline during the last period, compared to the levels it was at the beginning of the application of the new system of vehicle insurance in the beginning of 2017», pointing out that «a large percentage of dealers are seeking to get permanently The lowest price, regardless of the level of services you will receive later during the settlement of traffic claims ».
the highest rate
Saeed Al Muhairi, Executive Director of United Gulf Insurance Brokers, said, “Insurance companies in general resort to imposing the upper limit of premium for drivers who have obtained recent driving licenses, regardless of their age.” Tolerance for this category is also high, reaching the upper limits of the document. ”
He pointed out that «these measures - taken by insurance companies - comes within the framework of hedging against the potential risks for this category of drivers, without prejudice to the terms and rules contained in the document», pointing out that «companies should take into account whether the customer has experience A precedent in driving in his native country, with his driving licenses.
Al-Muhairi explained: «There is a discrepancy in the prices of insurance policies for vehicles provided by companies operating in the local market, based on the underwriting policies adopted by each company», pointing out that «insurance companies take several actions towards categories of drivers, and may only provide the insurance policy (Against others) without a document (Shamil) for them, especially dealers who caused costly traffic accidents on companies, or under the age of 25 years, as well as drivers who drive sports cars ».