Shoura Council is scheduled to discuss in its next sitting a bill for
the mandatory third party cooperative insurance scheme for cars which
will cover the cars, property, death and damages to victims of an
accident in which the insured party is involved, according to a
reliable source. This basic insurance service is available in most
countries of the world.
An earlier study on
insurance recommended the linking of the third party insurance with
the buyer’s driving license, a practice followed by sellers of cars
on hire purchase, according to sources in the insurance market.
insurance will solve the problem of drivers who are involved in
accidents but do not have the means to meet the cost of damage to
their victims. Several studies have revealed that most drivers
involved in accidents were unable to pay for the damages caused by
them to other people and their property. These drivers remain in jail
until their obligations are paid, a market source said.
The third party
insurance is a necessity as cars are affordable even to people with
very low income. The total number of roadworthy cars in the Kingdom is
estimated at 6 million. Some victims used to be content with the part
payment of the cost of damages offered by poor drivers while others
waived their claims in full.
government is expected to implement shortly a health insurance scheme
to the 6 million expatriates working in the Kingdom.
health insurance scheme will be applicable to every wage earning
expatriate worker even if he is self-employed. Their income level,
nature of employment or duration of employment is not a condition for
the insurance coverage.
residents such as students and those who accompany other expatriate
workers, also come under the regulation on condition that the
establishment or agencies to which they belong undertake their
The new regulations
exempt all expatriate workers in government establishments and
agencies from the scheme. Saudi citizens will come under the health
insurance in the second phase of the scheme.
Source: Arab News©