MCCI reviews investment losses in transport sector

MCCI reviews investment losses in transport sector
Updated 21 August 2014

MCCI reviews investment losses in transport sector

MCCI reviews investment losses in transport sector

The transportation committee at the Makkah Chamber of Commerce and Industry (MCCI) met on Wednesday to discuss high insurance rates and huge losses incurred by investors in the transport sector.
Qablan Al-Amari, an investor and a member of the committee, said that Makkah’s transport companies were urged to join hands in protecting their investments, demanding timely compensation and ensuring that insurance companies repair insured vehicles for free.
The meeting was also held to address the slow handover of vehicles following accidents. 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 scrutinizing the terms stipulated in maintenance contracts in a bid to get out of fixing so many cars.
“Repair delays cost transport companies SR10,000 per vehicle, especially in Makkah, where demand for transportation is high thanks to pilgrims coming in for Haj and Umrah throughout the year.”
“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.”
There are more than 150 companies deploying 7,000 taxis who can join hands to overcome insurance obstacles, he said.
Mohammad Sharif, a committee member, said that companies with extensive experience in transporting pilgrims can benefit from insurance companies by signing a contract stipulating repair within a certain period or fines for unjustified delays.
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.
Saad Jameel Al-Qurashi, chairman of the committee and board member at the MCCI, suggested that the committee conduct a study on obstacles facing investment and the growing number of vehicles.
He also suggested holding a meeting with Makkah’s traffic director to discuss investors’ concerns and aspirations.