different coverages of car insurance


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A range of documents provides multiple and different coverages of car insurance

 

Compulsory insurance policy: Civil liability arising from accidents of express transport vehicles compensates the joint liability insurance policy against the amounts required by Law No. 72 of 2007 as a result of personal injury or damage to property to a third party except cars

Supplementary Insurance Policy Comprehensive))

The supplementary insurance policy covers loss or damage to the insured vehicle and its proven attachment in the following cases: Collision or coup d’état – Fire – Intentional act of third parties Accidents of burglary or theft that affect the insured vehicle or the damage caused by it or the commencement thereof during the road transport or carriage by road Rail or inland transport or elevators, in addition to the coverage of civil liability before the property of third parties may be increased by an additional premium within the country in accordance with the terms and conditions of the supplementary insurance policy approved by the Financial Control Authority

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A personal accident insurance policy

This document provides the driver of the car, his wife, parents and children with him in the car in the event of an accident “I can not God” insurance coverage for one of the following dangers:

Death – Total permanent disability – Permanent partial disability

 

Road Assistance Insurance Policy Road Services (24 hours)

This document provides for the participant to cover the expenses required for Qatar or tow the car in the following cases

  • The insured car is exposed to an accident
  • Disruption of an insured vehicle
  • Damage to tires
  • The car needs fuel

Insurance companies: 4 categories of drivers apply to the upper limits of prices in the documents

Insurance companies said the companies applied high price limits to four categories of drivers, including drivers under the age of 25, new drivers, as well as luxury sports car owners and those who commit traffic accidents

 

Sports and luxury vehicles

 

The cost of insurance for luxury vehicles and sports, “The companies recognize that one accident may cost them a lot of premiums received from the portfolio of vehicles»

 

“Car agencies do not give insurance companies any price rebates on these vehicles, and the cost of maintaining them is very high,” he said

 

Sports vehicles have a greater risk for insurance companies, based on the cost of maintaining them, as well as spare parts. Therefore, the upper limit companies apply the insurance policies for these vehicles usually

 

“For these categories, insurance rates are usually 50 percent higher than other categories of drivers,” he said, noting that “these pricing policies reduce companies’ exposure to loss

 

“Insurance companies are hedging against these categories of drivers or vehicles because of the high risks involved in accepting insurance coverage,” they said

High limits

 

In detail, the sales manager at a company said that insurance companies operating in the local market apply the upper limits of vehicle insurance policies to four categories of drivers

 

And that these categories include: drivers under the age of 25 years, and the owners of new driving licenses, as well as the owners of luxury sports vehicles and owners of traffic records, are not clean, who commit traffic accidents, pointing out that the rate of losses recorded by companies in these categories are high, So their risk is higher than other categories of drivers

 

And that the insurance companies avoid the drivers in the four categories, while a large part of them prefer not to insurance for drivers who have obtained a new driving license, noting that 95% of companies operating in the local market take precautions, and set special conditions, if accepted to provide insurance coverage For drivers under these categories

 

And that the prices of vehicle insurance policies for these categories, close to the highest levels contained in the new document for most insurance companies », considering that« these pricing policies reduce the opportunities for companies to lose

 

 

High risk

 

Insurance rates for motor vehicles, under the age of 25 years, is high for most companies », pointing out« insurance companies take precautions, is to load the driver causing the accident 10% of the cost of settlement of the claim for this category

 

And that insurance companies have the right to protect themselves against the high risks of some vehicles, so as not to face significant losses during the maintenance and settlement of insurance claims, pointing out that «drivers who do not have the experience of driving in vehicles, and recently obtained licenses, face high insurance premiums, Compared to other categories

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Those companies accept the provision of coverage for different categories but resort to imposing additional burdens, and other conditions, to protect themselves from losses. A compliant driver cannot be treated in the same way as a driver who commits accidents. Several criteria interfere with the pricing of documents. This is normal and comes within the technical framework

 

Car Insurance Policy

 

National insurance companies bear the largest share of losses in the vehicle insurance sector, as only a fraction of their premiums are transferred to global reinsurance companies

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Insurance companies, through the records available to them and the data they collect, are hedging against specific categories of drivers or vehicles because of the high risk, if they accept the provision of insurance coverage, “pointing out that” companies follow different ways of pricing insurance documents for these cases

Moreover, that “very few companies accept insurance coverage for drivers under the age of 25, and if the company accepts, they impose very high prices

 

In addition, those companies are required to make profits in the end and are sometimes forced to follow certain pricing principles imposed by the insurance, through the appointment of actuarial companies, to control prices and determine based on technical

 

It is important to find a mechanism between insurance companies and vehicle agencies, in the context of reducing the prices of insurance policies for some groups, especially those under the age of 25, or who have obtained a new driving license

 

Insurance rates for these categories are usually 25-50% higher than for other categories of drivers

 

Car insurance prices are the first decline since the new document was introduced

The insurance prices for cars have witnessed the first decline since the beginning of 2017, with the introduction of the new document system, said the managers of the insurance brokerage companies, pointing out that the market witnessed during the last three months a corrective trend of insurance prices compared to previous levels

 

In addition, that the rates of decline ranged between 10 and 20%, pointing out that with the improved financial results of insurance companies there is more opportunity to adjust prices according to market requirements

 

They pointed out that despite this decline in average prices, there are special prices applied to vehicles and specific categories of drivers, including drivers of vehicles under the age of 25 years, and owners of clean traffic records, as well as sports and luxury vehicles and other cases

 

Document prices

 

And “the prices of insurance policies on cars, recorded a decline of about 20% on average compared to levels in early 2018 when the new document system was implemented

 

And that the market has seen in recent months a corrective trend of car insurance prices, after witnessing a marked increase with the implementation of the new system, pointing out that with the improved financial results of insurance companies there is more opportunity to adjust prices according to market requirements, and insurance companies set pricing policies to build On the performance of its portfolios in the automotive sector

 

Despite the decline in average prices, there are special prices applicable to vehicles and specific categories of drivers, including drivers of vehicles under the age of 18, About 25 years old, owners of new driving licenses and non-clean traffic records, as well as sports or luxury cars

 

months for car insurance

 

And the last three months witnessed the first decline in the average rates of insurance for vehicles since the implementation of the new document at the beginning of 2017 », pointing out that« the rates of decline ranged from 10 to 20% on average

 

We noted that the long-term insurance policy and third-party insurance also declined, as the performance of the auto insurance sector in the insurance companies’ financial statements improved, they had more room to move on prices and to identify them based on several factors. “At the same time, Its market share in the automotive sector, which is one of the largest insurance sectors and the main source of liquidity

 

And that the results of insurance companies are linked to several factors, including the prices of car agencies, maintenance workshops, and spare parts », noting, « Some companies seek to conclude agreements with maintenance in this framework

 

Moreover, that the majority of dealers are looking for the cheapest price to ensure their vehicles in isolation from the quality of service expected in the settlement of claims, “explaining that« the levels of decline in prices did not reach the stage of burning prices, but the case of correction of the increase that occurred in the market in early 2017 ». He noted that the insurance company constantly monitors prices to ensure they are on the right track of the consumer and insurance company

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Profit margin

 

In addition, the prices of insurance policies on cars linked to the margin of profits or losses that may be recorded by companies, pointing out that some companies resort to giving discounts on prices

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And that it is natural that prices fall if companies are able to deal with them and achieve a margin of profit while maintaining market shares or increase the share, pointing out that it is also linked to reinsurance agreements and conditions with international return companies, and pricing policies based on profit rates and loss degree First and the direction of price movement in the overall market

The new document

 

The insurance and risk management consultations and the high prices of vehicle insurance at the beginning of 2017 with the implementation of the new document was reflected in the increase in insurance premiums in total, noting that the prices available in the market are well thought out and are in line with the market movement

 

Premiums will continue to rise during the current year regardless of the number of new vehicles entering the market and will secure them for the first time, as the average price improves compared with the years before the new document was implemented

 

Pricing of documents

Insurance companies resort to the pricing of vehicle insurance based on several factors, such as the vehicle model, the age of the driver, the tolerance ratios contained in the document, if the dealer is causing the accident, and the companies are keen to follow the technical pricing policies in the auto insurance sector to assess the risk more accurately

Companies apply a fee to the vehicle insurance policy

The companies consider the fee part of the expenses for the completion of the treatment of the insurance policy and included in the operating costs, noting that the fee is included within the cost of the document

 

In addition, showed that car insurance prices recorded rates of decline marked during the last period compared to levels since the beginning of 2018, with the introduction of the new document system

 

For its part, the Insurance Authority stated that the price system for vehicle insurance policies No. 30 of 2016 stipulates that the price tariff include all the covers mentioned in the documents, all allowances, administrative expenses, and commissions

 

Insurance companies have long applied the insurance policy for general insurance products, but in the recent period some companies operating in the local market have applied this fee to the car insurance policy

 

And that companies include this fee within the price of the insurance as part of the costs incurred, while others stopped the application of the fee later, adding that the insurance companies apply different pricing policies on the documents of cars according to the portfolio and financial results achieved in this sector

 

And the value of the fee for the issuance of insurance policy on vehicles applied by some companies in the market

And that companies consider the fee part of the expenses for the completion of the treatment of the insurance policy and included in the operating costs », pointing out that« the Insurance Authority issued a decision to prevent the collection of fees and commissions additional to the insurance policy on vehicles

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In addition, that «car insurance prices recorded rates of decline marked during the last period compared to levels since the beginning of 2017, with the introduction of the new document system, pointing out that competition between companies contributed to lower prices again

 

The director of sales at a company for insurance services, the application of some companies to draw a special issue of the document worth up to $, adding that other companies prefer not to collect this fee from dealers when selling insurance documents

 

Moreover, that the fee is included in the total value of the insurance policy upon issuance, indicating that this fee was applied to the general insurance products and the value of more than 50%

 

 


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