Comprehensive insurance to cost more for 'risky' drivers
July 23 2016 10:26 PM
QCB
QCB hopes the new initiative would help improve the conduct of the road users and attain traffic safety.

Doha

Comprehensive insurance policy for vehicles belonging to motorists who have caused accidents or violated traffic laws will be costlier in Qatar, a move that the Qatar Central Bank (QCB) said would lead to safer roads in the country.
In this regard, QCB has allowed insurance companies to charge a higher premium for comprehensive insurance from "risky drivers" and asked them to calculate the amount on the basis of the record of the driver available with the competent authorities.
"All insurance policies for mechanical vehicles should include a clause indicating the risk factors (such as the record of the history of the motorist's driving)," QCB said in a circular, sent on July 21 , to "all insurance and re-insurance companies and takaful and re-takaful companies working in the country" . "The higher the risk of the motorist, the higher the premium," the memo clarified.
Other factors that will be taken into account to decide the cost of the policy include "the type of the vehicle and the distance covered by the motorist during the year, in addition to the record of the motorist regarding accidents and traffic violations".
QCB hoped the new initiative would contribute "towards improving the conduct of the road users and attain traffic safety on the road".
Also insurance companies have been asked to provide QCB with a report containing the "mid-annual statistics on the black spots in the country" , where accidents take place frequently, "and the reasons for this".
Stating the rules for settling compensation claims for the material damages sustained by vehicles due to traffic accidents, QCB said the terms that govern the compulsory third party insurance and the comprehensive (facultative) insurance are different.
The owner of a vehicle that has met with an accident can request the insurance company to replace the damaged parts with original and new spare parts.
"However, he should contribute a percentage of the price agreed upon mutually by both parties, on condition that such percentage should not exceed 50% of the value of the original parts. The insurance company or the wronged person can file a case in a court against the person who caused the accident to claim the amount (such percentage)."
For vehicles that are more than four years old, if a garage (approved by the insurance company) agrees to repair and restore it to the state prior to the accident without replacing any parts, that is an amicable settlement. But if the wronged person insists on replacing the parts with new and original parts, he should pay the difference in cost between the repair of the vehicle without replacement of parts and installing new and original parts.
QCB has instructed all insurance companies to display the circular regarding "unified standards for insurance of vehicles and the rules governing compensation claims for the material damages sustained by vehicles due to traffic accidents" at their headquarters and branches at a clear place for the benefit of customers.



There are no comments.

LEAVE A COMMENT Your email address will not be published. Required fields are marked*
MORE NEWS

HAPPENING IN DOHAMore