It confirmed that the practice of the "broker" business requires obtaining a license

The Insurance Authority calls for adherence to the limits of the “Vehicle Policy” price tariffs

The Insurance Authority assured that any discount that the company wishes to offer must take into account its financial position.

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The Insurance Authority has confirmed the necessity of adhering to the vehicle insurance tariff limits, according to what was issued by the Authority.

The Authority said, in a circular directed to insurance companies and insurance-related professions, that «Insurance Authority Board of Directors Decision No. (30) and its amendments regarding vehicle insurance rates tariffs, addressed the need for insurance companies to adhere to the tariff rates contained in the system.

It also allowed insurance companies the freedom to compete by offering prices according to the company's experience with the dealer, or for any technical or actuarial reasons, in a way that does not endanger their financial position or lose the rights of the insured.

On the other hand, the Authority stated that the tariff for insurance policies is amended by granting companies a discount on the insurance premium starting from 10% for the first year, 15% for the second year, and 20% for the third year, provided that the insured proves that he is one of the owners of records free of accidents. It came in line with global practices in rewarding owners of clean records from accidents, including what was done in light of the Corona pandemic by allowing companies to offer discounts of up to 50% to workers in the first defense line (doctors, health workers, the company, civil defense, the elderly and owners of clean records) , Provided that adherence to not exposing the company's financial position to risk.

She stressed the need to take into account the tariff limits set by the Authority, and that any discount the company wishes to offer must take into account the company's financial position, the actuary's recommendations and the tariff limits, in order to avoid any damage to the company's financial position or the rights of the insured, and companies' dealings with intermediaries should be limited. Or the price comparison sites licensed by the Authority, to avoid any violation of the provisions of the legislation, which requires the appropriate fine.

In addition, the Insurance Authority issued Circular No. (44) of 2020 regarding the obligation of insurance companies to deal with insurance brokers licensed by the Authority only, and the obligation of the insurance broker to deal with price comparison sites licensed with the Authority only.

The Authority said, in the circular directed to insurance companies and insurance-related professions, that “based on the provisions of Federal Law No. (6) of 2007, no person may practice the business of an insurance broker, except after being registered in the register designated for this purpose, in accordance with the conditions specified by it. The board of directors of the authority according to the regulations issued by it.

She added that, given the emergence of some illegal practices, represented in doing business or marketing insurance services by an entity, such as insurance brokers or marketing companies, using websites or sites to compare prices that are not licensed by the Authority, and to confirm the previous circulars, the Authority confirms that the practice of business The insurance broker must obtain a license from the Authority before starting work, and the insurance broker must, before dealing with any of the price comparison sites, request him to obtain prior approval from the Authority.

"The insurance company must not deal with any price comparison sites, and when dealing with any insurance broker, it must be verified that it is registered with the commission," the authority added.

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