Bahrain: Impact of new traffic law to be seen within a year
Source: Middle East Insurance Review | May 2015
Insurers in Bahrain will need around one year to assess the impact of the Kingdom’s new and tougher traffic law on claims and the bottom line, said Chairman of the Bahrain Insurance Association (BIA), Mr Yahya Nooruddin.
Mr Nooruddin said in an interview with Al Wasat that any decline in motor claims as a result of the implementation of the new traffic law could allow insurers to grant rebates, reduce premium rates or even add features to motor policies.
Bahrain’s new traffic law, which came into effect on 8 February, imposes fines and jail times for various offences, including a fine of up to BHD6,000 (US$15,916) and jail time for causing a fatality when jumping a red light. Motorists who even touch their phones while driving will be fined up to BHD500, according to Gulf Daily News.
“The purpose of stiffening the penalties for traffic offences is to deter drivers from exceeding the legal speed limit and rectify driving practices, starting with buckling seat belts to refraining from using mobile phones and smoking in vehicles, which have been among the leading causes of accidents in recent years,” said Mr Younis Al Sayed, the immediate past Chairman of BIA.
Last year, 61 deaths were caused by motor vehicle accidents. The most common cause of deadly car accidents in 2014 was speeding, followed closely by jumping red lights.
BHD1 = US$2.65