995 dirhams for "Al Shamel" ... and 472 dirhams for "Against others"

Ads on social media "burn" car insurance rates

Models of advertisements published on the sites.

From the source

Social media has witnessed more than 30 announcements of auto insurance policies, at prices lower than the minimum price of the unified policy set by the Insurance Authority by more than 30%, as these prices start from 995 dirhams for comprehensive insurance, and 472 dirhams for third party insurance, including tax, The minimum set according to the unified document starts from 1,300 dirhams for the comprehensive, and 700 dirhams for others.

According to a prominent official in the insurance sector, who preferred not to be named, many of these ads are a return to the phenomenon of "bag merchants" or "free-leass" and the burning of prices, as no one knows their affiliation to any company or the extent of the reliability of the services they provide when the damage occurs He emphasized that some of these ads depart from the accepted rules regarding the way the advertisement is written or displayed.

He said, "It is the responsibility of the Insurance Authority to follow up on such announcements, because there is great damage to the licensed companies and brokers, because of the burning of prices, and the licensed companies are forced to keep up with it in order not to lose their customers, which causes great losses in the end."

The official added, "In one case, we filed a complaint with the Insurance Authority, and the response was that some of these companies are based outside the Emirates, and their employees come to market inside the country, and therefore the Authority has no authority over them."

And he indicated that "there are no guarantees from licenses or others that guarantee the rights of the insured, and the way they deal with them at the time of the accident, and if there is a default, does the insured have the right to file a complaint with the authority, or are these authorities not authorized by them?"

He warned dealers not to be swept away by the cheap prices of insurance policies, saying, "It is necessary to verify the legality of these entities to ensure their rights."

For its part, Emirates Today contacted the Insurance Authority, but it was not possible to obtain a comment or an explanation, claiming that there are currently procedures for merging with the Central Bank.

For his part, the Secretary-General of the Emirates Insurance Association, Farid Lotfi, said that “insurance companies give a discount on documents to committed drivers at a rate of 10% annually, or to workers in the medical sector due to (Corona), but there are unknown parties exaggerating the discount, while providing it to everyone for a percentage Up to 40% of the minimum specified by the Insurance Authority according to the unified policy schedule.

Lotfi added, "We have received several complaints in the association from licensed companies against these advertisers, which practice a clear price burning policy that harms the sector, including companies, intermediaries, and insured persons, and we have transferred these complaints to the authority."

And he indicated that the Insurance Authority finally publishes on its social media sites advice and warnings against harmful practices in the insurance market, but there is an urgent need to deal decisively with the parties and people who practice price burning policies in order to maintain market stability.

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