Demand for the Orange card, a mandatory and uniform insurance policy for vehicles travelling from one Arab country to another, is expected to increase in the next three to five years, supported by Saudi Arabia’s decision to allow women to drive with effect from next June.
Mr Ayman Khamis, General Manager of Sharjah Insurance, told the newspaper Al Khaleej that the Saudi decision will be more evident in 3-5 years. “It will increase the demand for the Orange card by 5-10% in those years.”
The UAE is a preferred destination for tourism and shopping for many Saudi families.
Mr Khamis, though, expects to see more traffic accidents involving women drivers from Saudi Arabia, compared to the experience of women already driving in other countries. The exposure to traffic accidents, and thus the exposure to losses, are much higher.
“In the language of insurance, Saudi women will be treated as a new driver,” said Mr Ahmed Abu Khater, an insurance expert. “This means that their driving experience is very little; therefore, the risk of exposure to traffic accidents is much greater.”
The unified Orange card agreement on the movement of cars across the Arab countries, signed in Tunisia in 1975, and ratified by the UAE, provides for the establishment in each member state of a regional office called the Unified Office, which prepares and regulates the issuance and approval of the standard insurance card, receives claims arising from car accidents occurring in the state in which the Office is located and takes action related to the payment of compensation in accident cases.
The card covers the insured’s legal liability to third parties as a direct result of property damage and/or bodily injuries in the insured car while travelling in Arab countries. Compensation under this coverage will be in accordance with the law of the country where the car accident occurs. M