UAE: Auto premium discounts withdrawn from drivers with clean records
Source: Middle East Insurance Review | May 2019
Insurance brokers said insurers have withdrawn discounts from accident-free drivers in the wake of motor insurance prices falling in recent months.
Consequently, the trend is that all drivers are treated the same way regardless of their driving record, whether those involved accidents or not, reported Al-Emarat Al-Youm.
Mr Adnan Elias, director of sales at Fidelity Insurance Services, said some insurers had set up a mechanism to give motor premium discounts to accident-free motorists when a new vehicle insurance system was implemented in early 2017 that requires insurers to adhere to a minimum pricing for motor third party liability insurance.
He said, “Insurance prices have come close to the minimum. Because of this, insurers have declined to give discounts.”
Mr Mousa Shawahin, CEO of May Partners, said, “Insurance companies should take care of drivers who do not cause accidents, and give them preference when pricing their insurance policies, because it is also in the interests of the companies and reduces their risk levels.”
He added, “Even with prices falling to the lowest levels, companies have to remain committed to this policy of giving discounts to good drivers.”
The discount mechanism is essential in contributing to encouraging safe driving. M