Dealers called on insurance companies operating in the local market to introduce innovative products to secure vehicles, taking into account the premiums according to many factors, most notably the rate of use or the number of kilometers traveled, noting the importance of companies taking into account the differences between a driver driving a vehicle for two hours and another driving for 10 hours per week , As well as taking into account years of experience and the driver's traffic history.
For his part, officials and managers told «Emirates Today» that the Insurance Authority issued amendments so that companies have 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 the customer wants to cover in the event that the insured requests that. , Noting that the decline in the rate of car use, during the period of national sterilization, contributed to the emergence of demands on the part of dealers regarding the costs they pay to insure their vehicles.
Innovative products
The dealer (Abu Seif) said that insurance companies are required to provide innovative products to their customers, especially in light of the current circumstances with the spread of the Corona epidemic and its impact in various areas of life, pointing out that the rate of its use of his vehicle has declined during the past months to record levels with precautionary measures, except It pays the same costs for insurance.
He added that he had to renew his car insurance policy a few days ago, and contacted the insurance broker to know the prices available in the market, but he stressed that the insurance companies did not offer big discounts on installments after calculating the new price based on the consumption rates and the value of the vehicle.
(Abu Youssef) stated that calculating the prices of insurance policies according to the kilometers traveled will contribute to reducing the costs borne by the insured, indicating that the prices must also take the driver's traffic record and other other variables.
Kilometers traveled
The customer, Najah Suleiman, said that she will resort to securing her vehicle and her family's vehicle according to the mileage mechanism, given the limited use of the two vehicles even before the spread of the Corona virus and the application of national sterilization decisions, pointing out the importance of insurance companies taking into account these differences in use between a driver driving the vehicle For two hours and another for 10 hours per week.
She stressed the need for insurance companies to resort to pricing documents based on several criteria, including the rate of use and the number of accidents caused by the customer, noting that insurance companies are required to consider various factors when pricing the documents.
Traffic log
In the same context, the trader Salem Al-Saeed said that his traffic record was free of accidents during the past three years, but he did not notice this clearly reflecting the cost of the insurance policy. He stressed the importance of insurance companies take several criteria into account, including driving hours, kilometers traveled, and years of experience, which will encourage drivers to adhere to safe driving standards, while reducing driving hours and congestion on the roads.
adjustment
For his part, the sales manager of “Fidelity Insurance Services Company,” Adnan Elias, said that the insurance authority issued amendments so that companies have 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 the customer wants to cover in the event of a request The insured has it, but this mechanism has not been widely activated in the inter-company market.
Elias added that the availability of innovative products in the insurance sector could be an area of competition between companies in the local market during the coming period, indicating that the technical price of vehicle insurance is the price that takes into account many other factors.
Fair prices
In the same context, Saeed Al Muhairi, Executive Director of the "United Gulf Insurance Brokers" explained that the prices of auto insurance policies in European and American markets depend on several factors, including the driver and driving years, in addition to the traffic record and the vehicle model itself, as well as the rate The usage, geographical area of the registered vehicle, and many other factors should be taken into account. Al-Muhairi stated that the adoption of these standards provides customers and insurance companies with fair prices and coverage for both parties, noting that companies are always required to provide innovative products that meet the requirements of customers and meet their needs in accordance with the criteria set by the legislative frameworks.
Influencing factor
In turn, the head of the Technical Committee for Auto Insurance at the Emirates Insurance Association, Issam Maslamani, said that the demand for innovative products for the auto insurance sector may increase further during the coming period, including products that take into account the rate of use and the number of kilometers traveled in light of the question of customer demand . He stressed that the rate of use should not be the only criterion in the pricing process, pointing out that distances are a factor affecting the number of accidents, but it is not inevitable. He added, "It is normal for insurance costs to vary from one driver to another, based on many factors, including age, vehicle model and traffic history, as well as years of experience."
Maslamani pointed out that the decline in the rate of car use during the period of national sterilization contributed to the emergence of demands on the part of dealers regarding the costs they pay to insure their vehicles. He stated that with these products taking the rate of use into account, customers can expect to recover cash amounts calculated based on the distance they travel at the end of each year or six months, or that this amount is transferred and calculated within the costs of renewing the document.
Insurance product terms
Finally, the Insurance Authority issued amendments to the vehicle insurance rates, so that 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 the customer wants to cover in the event that the insured requests that, provided that it does not exceed The premium is the maximum prescribed in the tariff system, with the possibility of reducing it from the minimum.
The Authority had confirmed earlier, to «Emirates Today», the importance of the mechanism followed by the company with the proposal being transparent, provided that its application is optional for the insured, and not obligatory, with the need for the proposal not to affect the stability of the market and competition Fair, pricing limits for vehicle insurance policies decided by the authority.
Decreased use of cars contributed to the emergence of demands for insurance dealers.
Dealers: Calculating prices according to kilometers will reduce costs.