Local Makkah transport body demands stronger vehicle insurance laws
The transportation committee of Makkah Chamber of Commerce and Industry (MCCI) in Saudi Arabia met to discuss the impact of high insurance rates and the huge losses incurred by investors in the transport sector. Makkah’s transport companies were urged to cooperate in protecting investments, demand timely compensation and ensure free-of-charge vehicle repairs by insurance companies. […]
The transportation committee of Makkah Chamber of Commerce and Industry (MCCI) in Saudi Arabia met to discuss the impact of high insurance rates and the huge losses incurred by investors in the transport sector.
Makkah’s transport companies were urged to cooperate in protecting investments, demand timely compensation and ensure free-of-charge vehicle repairs by insurance companies. The meeting also discussed the slow handover of vehicles following accidents.
Qablan Al-Amari, an investor and a member of the committee, said cars are often held for more than 30 days after being taken in for repairs because insurance companies are reluctant to pay up, often stalling and scrutinising the terms stipulated in maintenance contracts as a way to avoid having to fix the vehicles.
“Repair delays cost transport companies $2,666 per vehicle, especially in Makkah, where demand for transportation is high thanks to pilgrims coming in for Haj and Umrah throughout the year,” Al-Amari said.
“Insurance companies often refuse to repair cars that have been damaged in accidents despite insurance coverage,” he said. “In reality, damaged cars should be repaired within a week.”
Suliman Al-Harbi, deputy chairman of the transport committee, said that the committee will review insurance companies that give the best deals to protect investment in the transport sector.
