Saudi Gazette report
RIYADH — The Executive Insurance Committee has confirmed the commitment of insurance companies to offer a 30-day grace period on expired insurance policies in order to grant no-claim and loyalty discounts approved by the Saudi Arabian Monetary Authority (SAMA).
SAMA, the country's insurance regulator, had asked insurance companies to provide no-claim discounts of up to 30 percent on policy prices to their customers starting this month.
The new amendment will replace the previous condition that required policy holders to have an active policy without a break in the insurance duration in order to benefit from a no-claim discount or loyalty discount.
The committee revealed that the instructions issued recently by SAMA on the eligibility requirements for no-claim discounts and loyalty discounts for all individual motor vehicle related insurance policies, were based on the Saudi central bank's efforts to monitor the implementation of the new pricing system.
SAMA discovered that the requirement of continuity of the previous insurance policy without break prevented many customers from benefitting from the discounts.
Basem Odeh, chairman of the Executive Insurance Committee, explained that as per a circular issued on April 9, SAMA has instructed insurance companies covering vehicle insurance to make amendments in their policies to add the 30-day grace period starting from the expiration date of the previous insurance policy and to grant a discount in case there is no-claim on the insurer and a loyalty discount where applicable.
Adel Al-Issa, media spokesman for insurance companies, said the objective of this amendment was to give an opportunity for the majority of the public to benefit from discounts provided by insurance companies, especially at the present stage of the new pricing system.
The amendment has already been implemented by insurance companies from the date of the circular and the unified database of insurance companies has been modified accordingly.
Alissa stressed that this amendment would have a positive impact on a large number of insurance applicants and would increase their chances of getting discounts.
He invited the public to browse through the Executive Insurance Committee’s website as well as other media platforms the EIC has been using to spread awareness to understand the discount mechanism.
He said the EIC account on Twitter @Saudinsurance provides regular information and is a means to increase public engagement with the insurance sector, receive inquiries as well as invite participation in awareness and educational campaigns developed by the EIC in cooperation with insurance companies such as the Safe Driving Campaign.
