The problem of claim recovery among motor insurers has entered the spotlight as one of the main challenges facing the insurance companies.
The economic impact of the COVID-19 pandemic that has led to declining liquidity and the high need for cash among insurance companies. Some insurers have delayed in settling their dues to their counterparts, and they are negotiating and manoeuvring to reduce the sums payable, reported Al Roeya.
The Emirates Insurance Association (EIA) expects the resolution to the problem is coordination between insurance companies with the help of the Insurance Authority.
Discussions would begin between the Insurance Authority and the EIA, to lay the foundations for the recovery of dues between insurance companies. They would work out a clear settlement timetable and procedures that guarantee the rights of all parties.
The motor technical committee in the association had earlier proposed to automate the claims recovery system, with the aim of saving effort and time, avoiding errors and speeding up the recovery process to provide liquidity. A claim would be uploaded to the system as soon as it is registered to show outstanding claims so as to prevent the accumulation of claims.
Mr Fareed Lutfi, the EIA secretary general, said that several insurers have endorsed the automated settlement platform and the association is waiting for responses from those who have yet to reply.