The Saudi Arabian Monetary Authority clarified that the instructions issued in December 2016 regarding obligating insurance companies to provide a discount for compulsory vehicle insurance to individuals with record free of claims on the new basic price; to adopt the discount percentage provided on the number of years of the insured record without any Claims. It will be effective next Saturday, April 1, 2017.
The discount rate reaches 15% of the new basic price for one year without claims, and the percentage increases with the increase in the number of years registered without claims, to reach 30% for three years without claims. The instructions also included the possibility for companies to present a "no-claims discount" on comprehensive vehicle insurance for individuals. Moreover, the insurance company may providing an additional discount to the insured in appreciation of their loyalty to the company by up to 10% of the new basic price for compulsory insurance and comprehensive insurance for individuals. This deduction is only provided if the insured renews his document with the same insurance company before its expiry so that there is no Interval between coverage provided. Based on the role of SAMA in protecting insurance policy holders and encouraging the principle of fair competition in the insurance sector, it calls on all beneficiaries to ensure the quality of services and prices provided by insurance companies to ensure better insurance services at competitive prices, and to choose the most suitable for them as prices and services differ from one company to another.
SAMA has placed the responsibility for verifying the insured's record on the insurance companies. Thus, the company is responsible for entering the insured's registry after his approval and knowing whether or not his record is free of claims, in order to facilitate the insured and shorten the time and effort that may require them to obtain no-claim certificates. Sometimes they have to obtain certificates from multiple companies sometime.
In order to achieve the principle of fair pricing; Vehicle insurance rates will increase for those insured who hold records that contain claims, and reward the insured who is keen to adhere to traffic regulations and safe driving. Hoping that the new mechanism adopted by SAMA will contribute to preserving public safety. SAMA also calls on all clients to exercise their rights guaranteed by the system and the to file a complaint with SAMA through the communication channels shown on its website (www.sama.gov.sa) in the event of breaching those rights and exposing them to any unfair or fraudulent practices.