Najm for Insurance Services will start in 2014 the implementation of incentives and rebates to motorists in Saudi Arabia, whose records are free of traffic accidents or violations of the system.

The insurance company will start preparations of this in collaboration with the General Directorate of Traffic and Saudi Arabian Monetary Agency (SAMA) in the second quarter of this year.

The insurance record’s project will pass through three stages, starting with the preparation of studies and getting in agreement with the relevant authorities. Lastly, the company will start collecting motorists’ data and identify incentives.”

The “Najm Net” system will gather information on motorists and traffic accidents. These data can be collected and used by Najm or traffic and road safety, or any other party. These also include traffic violations and compensation payments that insurance companies made for damages that the owner of the vehicle incurred. Motorists will be evaluated based on these data and they will be compared with the average assessment of motorists in Kingdom.

Badr Al-Ali, CEO of Najm, told Al-Eqtisadiah newspaper that this process would determine the driver’s commitment to traffic and road safety regulations. “This will provide insurance companies with a record for each of their clients, containing the number of traffic violations, the recurrence of accidents and the proportion of driver error.”

The system would enable companies to treat each client personally and fairly. It would charge drivers an insurance fee that complies with their commitment to traffic safety rules. “There are 28 licensed insurance companies currently involved in vehicle insurance business in the Kingdom. The insurance policies and rates are different from one company to the other, and discount rates depend on the insurance company’s corporate strategy,” said Al-Ali.

Companies give high discount to clients who have accident-free records in order to retain their customers. “We should be aware that most of the current insurance companies did not start working until after 2009, which reflects the novelty of the sector and the lack of supporters for this service,” said Al-Ali.

The system would benefit safe motorists and would act as an incentive for motorists to avoid accidents and traffic violations.

Al-Ali called to create a competitive atmosphere between the insurance companies to attract the best customers in the event of the application of the system, because they have a high safety levels, contributing to competitive prices and other services for this segment.