Officials of local insurance companies have been complaining of what they say is a sharp decrease in the number of motorists willing to have rukhsa (license) insurance as required under a new traffic law. According to some officials, the number of insured licenses dropped from 250,000 when the new system was first introduced a few years ago to around 80,000 at present.
The officials have sought to twist the facts by claiming that the hike in insurance costs — twice what they were two years ago — has nothing to do with the sharp drop in the number of insured licenses. The officials also claim that all those who applied to renew the policy before the increase came into effect would not be charged the new rates and would pay the original amount.
All that the insurance companies say is not true. Their claim that there is no link between the increase in the cost and the considerable drop in the number of insured licenses is absurd. Motorists who view insurance as a civilized way of dealing with road accidents have switched to other companies that offered them lower rates.
The problem is that most of these were small firms, operating from makeshift offices. After operating for a few months, most of them closed since they were not licensed for this kind of business in the first place. Motorists who sought to avoid paying higher prices to get their licenses insured found themselves victims of those unlicensed firms. But by doubling the insurance cost, the bigger companies drove the helpless motorists to the more difficult situation they now find themselves in.
Contrary to the claims by insurance companies, the increase was enforced on everyone — the motorists applying for the first time as well as those seeking to renew their licenses.
It was just such an indiscriminate approach that forced many to look for alternatives. The increase was untimely, unjustified and only led to further complications. Insurance companies stand to lose a great deal if they continue treating their clients like this.
Had it not been for the requirement that you have to produce an insurance policy to get a police paper to repair your car, obtain a new license or renew an old one, the number of motorists willing to insure would have decreased even more.
