Starting from the beginning of this year increase the price of insurance on transport vehicles by 100%
From the beginning of 2016, insurance companies increased the prices of “comprehensive” and “third-party” insurance by 100% over the land transport sector, according to Bandar Al-Jabri, head of the Land Transport Committee of the Eastern Chamber
Al-Jabri said that insurance companies, through official letters, notified the transport companies of raising the cost of the insurance policy as of January 1, without explaining the reasons for the increase.
The price of the “comprehensive” insurance policy rose from 3.5% of the value of the vehicle to 7%, while the price of the policy “against others” from 1200 riyals to 2500 riyals, according to the newspaper “Okaz
Al-Jabri explained that the land transport companies in Sharqi are in the process of forming a committee to negotiate with the insurance companies to obtain a unified pricing, which will allow the best prices, noting that the land transport companies insure on their fleets annually more than 120 million riyals
In the event that negotiations with insurance companies were not concluded with satisfactory results, he suggested negotiating with a foreign company for an agency and entering the local market
Employer insurance (for the car owner). Second: – Insurance for a driver
Thus, the owner of the car pays two types of insurance in return for coverage of the insurance of the employer and in front of the insurance of the driver driving the queen.
The third defendant collected the insurance from the owner of the car to cover the Tamina for any person driving the car owned by the insured (owner of the car – the owner of the establishment) Accordingly, the defendant must be given to the driver against the collection of those amounts service must be obtained by the driver and The employer (the owner of the car) paid for the insurance and these sums are the employer’s payment of the driver’s fee for the full coverage of the full social insurance of the driver, and it is not permissible to claim that social security does not collect the percentage of the employer in the share of the driver ) To repay insurance because social security collects this share of the employer’s car owner.
Accordingly, it is clear that the third defendant as the Supreme Chairman of the National Authority for Social Insurance collects the value of the social guarantees from the full plaintiffs,
(Their share in the insurance) or the share that belongs to the employer and is the owner of the car
Driven by the driver including the plaintiffs.
We conclude from this that the third defendant as the Supreme President and the legal representative of the National Authority for Social Insurance collects the amounts of Tamin from the owners of the cars (insurance for the driver) without the corresponding amounts of real insurance service for the drivers plaintiffs in return for the collection of these amounts, which constitutes a waste of the rights of plaintiffs to The third defendant covered the plaintiffs Tamina for securing the disease and securing the injury of the work, based on the decision contested in the pending case.
The plaintiffs seek from the honorable body to determine the earliest hearing for the urgent consideration and the elimination of the plaintiffs as a matter of urgency to suspend the implementation of the third defendant’s decision No. 184 of 1980, which included restricting the plaintiffs’ right to participate in the system of old age, disability and death insurance only and accepting their participation in insurance for cases of sickness and work injuries. This contribution shall provide them with health insurance and jealousy, provided that the judgment is executed by virtue of a draft and without a declaration.
In the matter: – Cancellation of Decision No. 184 of 1980 with the stipulation that the right of plaintiffs to participate in the system of insurance of old age, disability and death only without their participation in the other types of insurance for injury work or disease. With the consequent legal effects with the defendants being charged with expenses and fees.
10 cases not covered by “comprehensive insurance” on cars
Recent traffic accidents caused by combustion, fog and rain have raised many questions about the ranges covered by comprehensive vehicle insurance policies in the country.
Many insurance and loss insurance policyholders believe that their documents cover all risks without exceptions, according to legal and insurance company executives, based on the unofficial title of this document, called the Shamil document.
They noted that there were 10 specific cases in which the holder of the vehicle insurance policy lost the risk of loss and damage, the right to receive any financial compensation in the event of causing traffic accidents, based on the correct legal interpretation of the provisions of the consolidated document.
These errors were identified when driving accidents caused by driving under the influence of alcohol or driving the vehicle without an authorization or in the case of making false statements when the document is produced or deliberately damage the car by burning or manufacturing traffic accident, and in the case of theft of the car as a result of negligence As severe as leaving it in the event of running in road view or accident due to overload or use of the vehicle in a non-authorized purpose. They noted that other cases were not covered by the loss and damage insurance policy, such as the accident outside the geographical scope of the document and in cases where the vehicle was damaged, lost or damaged by a flood or a terrorist incident or if compensation claims were filed after the expiry of the legal period.
They called on the policyholders to read the text of the document and to identify the legal and geographical areas it covers, in order to avoid mistakes and cases that would deprive the holder of the document of financial compensation in the event of traffic accidents.
The compensation of the insurance companies operating in the UAE in the vehicle sector and repaired a new record in 2013, exceeding AED 4.08 billion, compared to about 2.784 billion dirhams in 2012, an increase of 46.76%, according to data from the Insurance Authority.
“The vehicle insurance policy against loss and damage risks is a legal document binding on both parties, the insured and the insured,” said Mohamed Mazhar Hamada, legal expert and chairman of the Higher Technical Committee of the Emirates Insurance Association.
He pointed out that the signature of the beneficiary on the document when purchased from the insurance company implies that he is aware of the full awareness of the rights and duties provided for, but the vast majority of holders of insurance policies of different types do not see them.
He pointed out that reading the document and knowing its clauses would contribute to increasing the awareness of the insured, and thus avoid entering into legal problems that would deprive him of any compensation in case of a traffic accident in circumstances and situations not covered by the document.
Hamada, who also serves as general manager of Al Ain Al Ahlia Insurance Company, added that according to the proper legal reading of the insurance policy on the vehicle against the risk of loss and damage, the geographical limits covered by the document do not exceed the stipulated and agreed between the parties «insured and insured».
The insurance policy was automatically issued to cover the risk of loss and damage within the geographical boundaries of the United Arab Emirates, if the insured did not request the extension of geographical coverage to include the Sultanate of Oman, for example.
He added that the insurance policy on vehicles against loss and damage does not cover the risks of flooding, hurricanes and terrorist incidents, pointing out that the official description of these cases is based on the competent authorities, meaning that the insurance company cannot compensate the holder of the document on the grounds that damage to the vehicle As the result of rainfall, the National Meteorological Agency (NMO) should describe these rains as “floods”, and so in the case of hurricanes, where no wind can be considered hurricanes
Hamada stressed that the recent traffic accidents caused by fog and rain have raised many questions about the coverage of insurance policies against loss and damage to the damage caused by these risks, noting that all these incidents are covered in accordance with the proper legal interpretation of the provisions of the document.
The decrease in horizontal visibility due to the formation of fog in the western region led to 9 separate incidents in one day in February, and a major fire at the University of Sharjah parking lot during the same month hit 19 cars, including five cars burned completely, In addition to burning all the umbrellas of cars in the parking
Mohammed Khalaf, director of auto insurance at Al-Buhaira National Insurance Company, asked the policyholders to read the document’s texts and identify the legal and geographical ranges covered by them, in order to avoid cases where the holder of the document is denied coverage of the risks. Khalaf confirmed that the insurance policy for cars against loss and damage does not cover deliberate traffic accidents, caused by a prior arrangement by the insured with the aim of canceling the car and obtaining financial compensation for damage
He said that the insurance companies operating in the state have specialized experts and investigators and can differentiate between traffic accidents and accidental, taking advantage of their accumulated experience in this area.
He pointed out that if the insured is determined to destroy the car through burning or the creation of a traffic accident, the insurance company refuses to pay the financial compensation, and can legal recourse to the insured.
He pointed out that the deliberate cases of damage to the car in order to obtain insurance compensation provided by the document is rare, and less than one case for every 1,000 claims received by insurance companies in the state.
Khalaf pointed out that the theft of the car as a result of gross negligence such as the theft of the car because of the key left in the case of running in the road, not covered with insurance, unlike the theft of the car through the breaking and destruction of windows by the thief.
Obligations of the Insured
Take all reasonable precautions to preserve the insured vehicle and protect it from loss or damage and keep it in a usable condition. In the event of an accident or damage to the vehicle, the insured shall not leave the insured vehicle or any part of it without taking the necessary precautions to prevent further damage.
– The insured must remain the owner of the insured vehicle for the duration of the document. He must not lease it to others. He should not sign any contract that would restrict his absolute ownership and possession of the vehicle without obtaining prior written approval from the company
– In the event of an accident involving a claim, according to this document, the Insured shall notify the competent official authorities immediately. He shall also notify the Insured Company of all the data relating to the incident without undue delay. The Insured shall, as soon as it receives such notice, notice or legal papers, as soon as it receives them.
To notify the company as soon as possible once it is aware of any investigation, investigation or investigation into the said incident. In the event of theft or other criminal action that may result in a claim under this Act, the Insured shall notify the Police as soon as possible and without delay and cooperate with the Company in that.
– Neither the Insured nor his representative shall make any declaration of responsibility, offer, promise or payment of any amount without the written consent of the Company
Types of car insurance
There are two main types of insurance on vehicles
First: third-party insurance: This type of compulsory insurance from the passage in Saudi Arabia and a number of countries in the world, which covers the damage on the other parties if there was an accident was wrong. This means the repair of other people’s car but does not fit your car. If you have an accident and you are wrong and you have this insurance, it protects you from entering the prison (transit prison) in Saudi Arabia, but if you do not own it, you enter the intervention of the reservation until you pay the damage to the other party. Some traffic transactions are not covered by this type of insurance, such as renewal of the form, transfer of ownership or the like. Often the price of this type of insurance is not subject to the value of the car but depends on the type of car, city, age, and history of accidents.
Second: Comprehensive insurance: It is optional in Saudi Arabia is the one that covers the damage from you and others is a third-party insurance and insurance for you. It means that if you become an accident, whether you are a glutton or an invalid you have to repair your car. This insurance is more expensive than against others and depends on the price of the car (proportion of the price of the car) and often pay the amount called the amount of the endurance when you claim to repair an accident if you are the culprit. The difference between the comprehensive and the third party includes your car and the third party does not include it and benefit from comprehensive insurance in other cases
Accidents unknown to the second party such as found your car shocked and do not know who hit it
Natural disasters and fire