JEDDAH, 18 January 2003 — The Traffic Department has started accepting insurance policies on driving license and cars issued by all companies operating in the Kingdom. Brig. Fahd Saud Al-Bishr, director general of the Traffic Department, said the move was in line with the Cabinet decision.
Bishr, however, added that his organization will accept the policies from companies other than the National Company for Cooperative Insurance, the only licensed insurance company in the Kingdom, according to specific conditions.
"There are certain conditions for accepting the insurance policies from companies other than the National Company for Cooperative Insurance," he told Arab News.
"With regard to other companies, a representative should come to the traffic office to give a written undertaking that they will pay all the cost resulting from the accident involving their clients," Bishr said.
"If they do not come, their policies will be considered as proof that insurance has been taken out but it may not cover them in the event of an accident," he explained.
The traffic director's statement comes at a time when the Council of Saudi Chambers of Commerce and Industry (CSCCI) is trying to push for accepting car insurance polices issued by all insurance companies, and not just the NCCI.
Many companies which provide car insurance services in the Kingdom have considerable financial liquidity and have been operating for several years.
The CSCCI's move comes in the light of a new law passed by the Shoura Council, which is awaiting endorsement by the Council of Ministers. The law allows the licensing of new insurance companies to meet the growing demand for insurance services, especially in the health and car insurance sectors.
Yesterday was the last day to take insurance on driving license for all vehicles in the Kingdom. NCCI started issuing the insurance policy in the middle of last Ramadan (Nov. 20, 2002).
The CSCCI has urged the traffic department to extend the deadline for the implementation of the compulsory third party insurance for three more years before imposing fines on defaulters.
"As there are seven million license holders in the Kingdom it is not possible to issue insurance policies for all cars within two months, even if all companies are allowed to provide the service," the council said in a letter to the Traffic Department.
