Traders said that insurance companies refuse to renew their vehicle documents (comprehensive), on the pretext that they caused traffic accidents and claims during the previous year, pointing out that they had the choice between raising premiums or looking for a replacement company in the event of universal coverage.
For its part, the Emirates Insurance Association felt that some of the insured cause more than one accident during the year, or successive accidents for several years, and it is natural for insurance companies to hedge against this category.
Customer Complaints
Mohammed Naeem, a trader, said: "A national insurance company refused to renew the insurance policy of his vehicle (comprehensive), under the pretext that he was involved in a traffic accident during the validity of the policy."
He added that he explained to the company's representative that he was the victim of the accident, considering that the incident was recorded against an unknown, but that the company insisted on the lack of comprehensive insurance, wondering if this measure had a negative impact on his traffic record due to an insurance claim did not cause it.
Hend Al-Saadi, a trader, said: “Our traffic record is free of accidents and the company has continuously renewed its insurance policy for years.”
She added that it caused a minor traffic accident, and finally, with the end of the coverage period, the insurance agent told her that the company will not renew the document because it caused a traffic accident.
She explained that she had contacted the company, which in turn agreed to cover, but the price of the document was slightly higher than the previous year, despite the low consumption rate, expressing surprise at the companies resort to this step, despite the clean record of the driver in previous years. "She had to look for a new insurance company to deal with," she said.
In turn, the trader Ibrahim Al-Shaker said: “The insurance companies are hedging towards the drivers who caused accidents, despite their record of traffic free from accidents in previous years.” He pointed out that he renewed the coverage of his vehicle for three consecutive years. The company to raise the price of the document by a large. He stressed that he had to look for an alternative at a much lower price than he was offered in his first company.
Accidents and claims
Farid Lutfi, General Secretary of the Emirates Insurance Association, said: “Companies generally provide insurance against third parties for vehicles, regardless of the traffic record, but they may have reservations about (comprehensive insurance) for drivers whose traffic accidents are increasing. "At some point the drivers are causing more losses than the premiums they paid."
"Most companies do not oppose renewing the document for the driver who caused one accident over two or three years," Lutfi said, pointing out that some insurers cause more than one accident during a year, or successive accidents for several years. To hedge against this category. ”
He explained that drivers who caused more than one accident, and have unclean records, are forced to search for a new insurance company during the renewal of the document, or are obliged to pay higher premiums if they want to continue with the same company, pointing out that the insurance is based on the law of large numbers, and is studying Businesses on an actuarial basis may suffer losses.
Lutfi explained that the premiums on motor vehicles in various markets depend largely on the experience of the driver, and the number of accidents that caused them, pointing out that companies are generally based on the data available to them to determine the technical price based on the identification of risk, and how to avoid potential losses due to the insurance policy.
Convert the document
Saeed Ahmed Al Muhairi, Chairman of United Gulf Insurance Brokerage Company, said that insurance companies cannot refuse, but only have the right to convert the policy from "universal coverage" to "third parties" if the driver causes more than one accident. This is a normal measure taken by insurance companies in different markets, pointing out that a percentage of companies in the local market have different underwriting policies and are directly based on them to determine the price of the vehicle insurance policy.
"For the local market, given the lack of data from insurance companies, it is only the experience of each company with the driver himself, regardless of his past accidents or the clean record," he added.
"If the driver causes one or more accidents, he may face action by the company by raising prices to its upper limits," he said, noting that it does not apply to drivers affected by accidents but only to those who cause them.
He pointed out that in the case of minor accidents, most companies do not pay attention to it, unless repeated more than once and over a short period of time, pointing out that the local market includes about 60 national and foreign insurance companies, so the dealers have several options to choose the company and the document They consider suitable to secure their vehicles.
60
National and foreign insurance company in the state markets.