DOHA: Several car owners are demanding separate regulator for motor insurance, saying some insurers are taking them for a ride by forcing them to bear part of repair costs for damaged vehicles.
Motor insurance is an important segment of the underwriting business in Qatar and many people, including lawyers, allege that some insurers are forcing customers to bear between 25 and 50 percent of repair costs.
Insurers are taking advantage of lack of information on the part of customers and clear clauses in motor insurance documents, local Arabic daily Al Raya said yesterday. “There are several disputes between car owners and insurance companies in which the former were not only forced to bear part of repair costs and pay illegal fees, but also denied repair of their cars damaged in accidents,” said Abdur Rahman Al Jefairi, a prominent lawyer.
“Some motor insurance companies are not dealing with customers in a transparent manner. They exploit lack of information on the part of insurance policy buyers and compel them to sign contracts that contradict insurance laws.”
He said there were instances where insurance providers forced owners to get their vehicles repaired in workshops other than authorised garages of respective car agencies, to save money.
“Due to such practices by insurance companies, there are a lot of cases in courts. The number would have been much more because many victims do not approach courts to avoid long legal procedures,” added Al Jefairi.
The daily said such complaints are increasing as insurance buyers are being forced to pay a significant part of repair costs irrespective of the fact whether the car owner is a victim of a violator. Because of lack of transparency, some insurance companies are trying to exploit customers through different ways, which include forcing them to go to some specific garages to save money on repair costs, regardless of the quality of service offered.
“And in case the car is cancelled, they underestimate the value,” the daily reported.
Saleh Al Kaabi, a citizen, said: “It is important to have a regulatory body to monitor the performance of the sector. Many motor insurance companies are involved in the practice of signing contracts with customers to avoid law and manipulate the situation.”
He said when customers go to insurance companies to buy their products, they sound friendly and welcome you with warm greetings, but once a product is sold, they do not communicate properly and show their true colour. In fact, instead of implementing insurance rules as per the rule book, they start bargaining to share percentage of repair costs.
He said even if the car is fully insured, they make you pay part of repair costs. He argued that if the premium charged for the services is not enough, they should increase the price of the products instead of bargaining with customers individually.
Al Kaabi suggested that while estimating the price of a motor insurance product, companies should take into account important factors such as the driving history of the motorist, age and number of years dealing with the same company, among other factors.
Another citizen, Ali Al Azba, said insurance products are rightly priced but rules are not very clear. This is the reason some companies still find ways and means, under different names and justification, to compel customers to share up to 50 percent of repair costs.
The Peninsula
