Call to raise motor insurance premium
December 22, 2006
DOHA • The insurance industry in the country is putting
pressure on the authorities concerned to raise the motor insurance
premium to help them meet increasing overhead costs.
A committee has been formed at the Qatar Chamber of Commerce and
Industry (QCCI) that would lobby with the government to achieve
its objectives.
The panel which met at the QCCI premises here recently, argues
that motor insurance premium has not been revised upwards for the
past several years despite the fact that the prices of automobile
and the overall cost of living have gone up substantially during
the period.
The committee is shooting off a communication addressed to the
Minister of State for Interior Affairs requesting him to favourably
consider its plea for revision of motor
insurance rates.
A study was conducted to assess the impact of rising prices on
the local insurance sector a few years ago. The study is being updated
to take into account recent changes that have taken place in the
automobile, insurance and judicial circles.
The study, once upgraded, will be approved by the committee and
subsequently its head and members will seek a meeting with the Minister
of State for Interior Affairs and brief him on the situation and
simultaneously hand a copy of the findings.
The panel is of the view that not only the automobile prices have
increased dramatically over the past several years, but the blood
money which the heirs of a road accident victim are entitled to
in the case of his death, has been raised by the authorities concerned
from QR100,000 to QR150,000 in 2004.
Automobile dealers have accordingly raised their rates and so has
been done by garages and auto service centres. "Automobile
maintenance costs have gone up considerably over the past few years," says
the panel.
The motor insurance premium being low, the industry is suffering
huge losses. They are offsetting their losses with other insurance
activities which are lucrative, as well as getting returns on their
investment, says the committee.
Auto spare parts have not been spared either. Their prices have
also multiplied manifold and all this has left an adverse chain
effect on the local insurance sector, says the panel.
The committee also underlined the importance of establishing closer
ties with their customers as well as automobile dealers, garages
and service centres.
It will press ahead with plans to set up an association of insurance
companies that would, arguably, lobby with the government and other
agencies as and when required.
The QCCI has a banking and investment committee which also looks
after the interests of the insurance industry. It is headed by Sheikh
Nawaf bin Mohamed bin Jabr Al Thani, who is a member of the QCCI's
board.
However, the committee which has been established to liaise with
the authorities concerned to raise the motor insurance premium is
chaired by Sheikh Jassem bin Abdullah bin Mohamed bin Jabr Al Thani. References :http://www.thepeninsulaqatar.com |
