The Board of Directors of the Insurance Commission decided to amend the tariff for vehicle insurance rates, by granting insurance companies the power to deduct from the minimum insurance premium of up to 50% for vehicles working in the first line of defense from the medical sector, and those involved in the armed forces, police and civil defense, senior citizens, and people of determination, And demanded insurance (from individuals) with an accident-free record.
According to a statement issued yesterday, the amendments included giving companies the possibility to return part of the insurance premiums in relation to the vehicle documents in effect, or to reduce the insurance premium from the minimum when renewing the insurance policy, in proportion to the periods of application of the national sterilization system issued by the competent authorities.
The decisions also included that the company has the right to calculate the premiums for new or renewed documents by making them related to the kilometers covered by the vehicle, in the event that the insured requests that, provided that the insurance premium does not exceed the maximum specified in the vehicle insurance tariff rates determined by the authority, with the possibility of lowering the minimum.
This trend comes within the framework of the authority’s keenness to stimulate innovation and push companies towards offering innovative insurance products, including the kilometers-based insurance product, which is known globally as “Pay as you go”, to meet the needs of vehicle drivers who do not travel long distances, and are looking to pay Premiums that suit their actual needs.
The authority emphasized that the work of this insurance product does not modify or cancel the vehicle insurance policies of both types (from civil liability or loss and damage) issued according to the unified system of vehicle insurance documents. And indicated that it may be appropriate to start work with the application of such products, in light of the sterilization periods that lead to reducing the periods of vehicle use.
The Minister of Economy and Chairman of the Board of Directors of the Insurance Authority, Sultan Al-Mansouri, said that the decision of the deductions comes in appreciation of the efforts of workers in the first line of defense in preserving lives and properties and taking into account the conditions of some groups, indicating that these new decisions come within the package of measures that the body takes to mitigate the insured public They and some segments of society have the effect of the repercussions of the emerging Corona virus.