A Saudi writer criticizes the insurance spokesperson’s justification for raising prices…and reveals loopholes that companies exploit because of the central bank’s kindness!

Al-Marsad Newspaper: The writer, Bassam Fitini, commented on the statements of the spokesperson for the insurance companies in a television interview, referring to the reason for the increase in car insurance rates to the increase in the number of traffic accidents, in an article in Makkah newspaper under the title “Who restrains the insurance companies?”

No censor or accountant

At the beginning of his article, Fitini said: “The official spokesperson for the insurance companies stated on the Saudi news channel, justifying the reason for the increase in car insurance rates by the increase in the number of accidents! As it exceeded 1.6 million accidents in 2022. This means that companies in this sector do not It has no control over its censor, and it can decide and implement the idea of ​​raising prices automatically without hesitation, in light of the silence of the Central Bank. Form a committee or even make an effort!”

And he continued: “The insurance sector companies allowed themselves to double prices because of a group of reckless people who cause accidents, so the insurance companies decided to punish everyone, even those who adhere to traffic regulations and have not committed any accidents! This means that greed has an endless story, so what is the solution? The solution from my point of view is very simple, but it will not be simple for the insurance companies, because the solution that I and others propose is not in the interest of their profits!

And he added: “The solution, gentlemen, is to punish the playboy alone and raise the value of the insurance on him. It is only a punishment for him and a deterrent for people like him. Rather, in return, the obligor and those whose record is free of accidents must be granted by giving him very low fees, because he is a customer who does not lose to the insurance company. As for what is happening now From punishing all the students in the class because of a group of rioting students, this is the solution of the greedy idiot, not the morally disciplined educator!

Lots of loopholes

And the writer continued: “I say this when I see many loopholes that insurance companies exploit because of the central bank’s (kindness) towards them and their failure to hold them accountable when coercing the customer, and I believe that the time has come to modify the behavior of the insurance understanding of vehicles. What is happening now is an exploitation of the loophole that insurance is imposed by necessity. When the owner changes during the validity of the insurance policy, while the insurance is supposed to remain valid throughout the contract period, so that the insurance is for the vehicle’s asset, not the driver! There are other loopholes that cannot be mentioned.”

He concluded by saying: “However, what I can now mention in conclusion is that insurance companies must have a stand by the regulatory authorities. What is happening now can only be described as a desire to raise profits at the expense of service!”

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