RIYADH, 26 December 2002 — A prominent insurance expert has clarified that the traffic department is accepting compulsory third party motor insurance certificates issued by all insurance companies operating in the Kingdom as guarantees in case of traffic accidents.
The insurance certificates will serve as a bail bond preventing the traffic police from arresting motorists or ensuring prompt release from police custody.
Abdulaziz A. Abussuud, president and chief executive officer of Arab Commercial Enterprises (ACE), told Arab News here today that "the traffic personnel also need to be educated on all fronts", when asked about police personnel harassing motorists and arresting them despite them possessing insurance certificates.
He said that NCCI is no longer the only company whose motor and ruksha insurance policies are accepted by the Ministry of Interior as bail bond documents. Abussuud, however, said that it will take time to streamline the whole traffic operation and eventually putting the mechanism in place. "The idea of arresting the offender was to ensure that the rights of the third party (victim) will be safeguarded and with the bail bond the purpose is served", he said.
Abussuud said that the insurance coverage of Saudi Arabian Insurance Co (SAICO), an ACE subsidiary, serves as a bail bond on the same footing. SAICO’s certificates will have the required limit of liability for third party physical injury and third party property damaged in any accident within the Kingdom. "The liability shall be toward bodily injury or property damage caused by the driver of the vehicle insured by the company, who is responsible for the accident", he said.
Several other insurance companies are currently offering this insurance service in the Kingdom. The government made third party motor insurance compulsory for all drivers from Nov. 20. The Shoura Council recently decided to establish a central authority for the supervision of insurance companies, which will be monitored by the Commerce Ministry and Saudi Arabian Monetary Agency (SAMA) together.
But, many people contacted by Arab News today said that almost all jails of the traffic police remain full despite the government making motor insurance mandatory, thus preventing arrests of traffic offenders. More than 267,000 traffic accidents are reported to take place annually in the Kingdom in which over 4,500 persons die and 32,000 suffer injuries. Only 21 percent of motorists were said to be insured before insurance was made mandatory.
Referring to the expanding operations of SAICO, the largest privately-owned insurance company of Saudi Arabia, the ACE president said that this insurance company has opened its office in Kuwait this month . An estimated 70 insurance companies are currently operating in Saudi Arabia, he said.
