Palestine: Insurance Federation calls for action against unregistered vehicles
Source: Middle East Insurance Review | Oct 2015
Mr Ayoub Zurub, Chairman of the Palestinian Insurance Federation (PIF), has called for immediate action to find solutions to the issue of unlicensed vehicles at a workshop, reported the Ma’an News Agency.
Unlicensed vehicles on the streets are estimated at 291,000 or 40% of the vehicle population. Mr Zurub said solving the issue would be in the interest of citizens, insurance companies and government bodies.
He said that it was important for insurers to abide by the minimum tariff for mandatory auto insurance so that they would be capable of providing services to customers. Failure to comply could affect the sustainable operations of some insurers. He said the Palestine Capital Market Authority (PCMA) is responsible for enforcing compliance.
Dr Mohammed Nasr, Chairman of the PCMA, said that the number of illegal vehicles plying the roads has affected the performance of the insurance sector. He said that the industry relies heavily on motor insurance and, to a smaller extent, on health insurance. These two lines of business together form more than 75% of the total premiums in Palestine.
Several recommendations were raised at the workshop, which was organised by the PIF, the Transport Ministry and the PCMA. These included linking vehicle registration with insurance, establishing competent courts to rule on insurance and traffic cases, and enhancing the role of the judiciary in cracking down on traffic violators.
Participants also discussed the need for insurers to abide by the minimum tariff for mandatory vehicle insurance; public education to reinforce traffic safety and insurance culture; and concerted efforts by legislative, judicial, executive and regulatory agencies to curb illegal vehicles.