Saudi Arabia: SAMA provides guidelines for no-claim discounts for motor insurance
Source: Middle East Insurance Review | Feb 2017
The Saudi Arabian Monetary Authority (SAMA) has provided guidelines to motor insurers pertaining to no-claims and loyalty discounts. The regulator said that the guidelines should be fully implemented by 1 April 2017.
Under these guidelines, customers who have not made any claim for a year will get a 15% no-claims discount, while those who reported no accidents for the past three years will get up to 30%, reported The Saudi Gazette.
“The proportion of discounts will depend on the number of years during which the customer has not been in any accident and has not tabled any claims,” SAMA said.
The regulator also directed motor insurers to give discounts of 10% to customers who have comprehensive insurance.
SAMA is also permitting insurers to give an extra discount of 10% to loyal customers who have been insured with them for a number of years.
It said the discounts will only be given to the customers who renew their expired insurance policies with the same insurer with no lapse of time between the old and the new insurance policy.