The dispute has been caused by the growing number of motor and property claims that insurance companies have rejected, prompting many policyholders to approach the authorities to intervene and secure compensation on their behalf.

Legal experts have, meanwhile, underlined the need for the government to work out a unified mechanism to draft insurance contracts to prevent policyholders from being exploited, according to Al-Riyadh newspaper.

Many people in Riyadh whose vehicles or properties were damaged in the rains and floods have complained that insurance companies rejected their claims saying there is no provision to give compensation to people affected by floods. Many of them expressed their anger and frustration to Al-Riyadh after their efforts to get compensation were unsuccessful.

Muhammad Al-Dabaan, a lawyer and legal consultant, said most policyholders are unaware of the details of the contracts they sign with insurance companies. “The insurance market is an entirely new industry for most people. They don’t have specific ideas about their rights and claims under the contracts they sign,” he said.

“Some of the insurance companies are clever enough to exploit clients after deliberately misleading them. As a result, clients remain unaware of what their contracts actually cover,” he added.

Al-Dabaan said most insurance firms in the Kingdom operate as agents of leading international insurance companies, which are very clever in safeguarding their rights, most often at the expense of their clients.

“People are made to sign insurance documents that generally serve the interests of the companies offering the policies. This creates loopholes and allows them not to give compensation after shirking away responsibility,” Al-Dabaan said, adding that insurance firms have many ways to avoid paying compensation.

He further called on the government to intervene and develop a unified insurance contract that ensures fair treatment to both insurance firms and policyholders. “There should be mandatory provisions in the contract under which insurance firms are forced to fulfill their responsibilities and not escape paying compensation under one pretext or another,” he said.