A group of lawmakers are trying to introduce changes to the terms and conditions of policies of private insurers through legislation, to prevent them from charging motorists not at fault in motor accidents.
The proposal follows numerous complaints from people claiming insurers have charged them a percentage of the repair job despite having comprehensive insurance and the police determining they were not at fault, reported Gulf Daily News.
Five MPs want to change this and a related proposal was submitted to parliament chairwoman Fouzia Zainal, who referred it to the services committee for review.
MP Dr Al Thawadi, who is also parliament’s human rights committee chairman said, “The conditions set by insurance companies could be unconstitutional and were possibly included in contracts that people sign without the approval of the Central Bank of Bahrain (CBB).
“Policies should follow certain templates that are acknowledged by the CBB and people should be enlightened about their rights before signing the contracts.”
However, MP Ahmed Al Salloom said, “The terms for compensation are clearly stated, whether someone is at fault or not; and insurance companies calculate things to maximise their profits and reduce spending on replacements and repairs.
“If people are not happy with the conditions set out in the contract, they should reject it and go to another company.”
In August, the same group of MPs submitted queries on private insurance policies in the country to CBB governor Rasheed Al Miraj who, in response, issued a decision to amend bylaws under the 2016 Unified Compulsory Insurance Policy Law. “In case there are no spare parts, new or used, then payments have to be made in final settlement at the cost of the new spare part and repairs,” stated the decision published in the Official Gazette.
In March, the total number of licensed vehicles registered in Bahrain reached 724,082, up from 695,707 a year earlier. M