The Insurance Authority said that, according to the amendments approved by the Board of Directors of the Insurance Authority on Resolution No. (30) for the year 2016 and its amendments, regarding tariffs for vehicle insurance rates, the company has the right to change the premium account for new or renewed documents, by making them related to the kilometers covered by the vehicle, or that it wishes The customer in its coverage, in the event the insured requests that, provided that the insurance premium does not exceed the maximum set in the tariff system, with the possibility of lowering the minimum.
The authority added that this trend comes within the framework of the authority’s keenness to stimulate innovation and push companies towards offering innovative insurance products, including the km-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 look To pay insurance premiums commensurate with their actual needs.
The Authority emphasized that the work of this insurance product does not modify or cancel vehicle insurance policies, with both types: from civil liability or loss and damage issued in accordance with 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 sterilization periods , Which results in reduced vehicle use times.