BY SATISH KANADY
DOHA: “Change the Gear” is what many vehicle-owners in Qatar tell their insurers. If the vehicle insurance companies do really care for the customer, as they claim, it is time they did some soul searching.
If you are an unfortunate motorist having met with an accident that has damaged your vehicle or the one which you hit, counting on your insurance company is as perilous as stepping in front of a speeding car. Approaching an insurance company in the aftermath of a mishap is nightmarish; and if it is the first time that you are undergoing accident pangs, you should be ready for a long and painful slog to get your vehicle fixed. You may have escaped injury to your personal self, but getting a low-down on insurance rules and navigating the labyrinthine alleys of some pretty long red-tape may leave you bruised and battered.
Disputes between insurance firms, delays in fixing vehicles, language barriers, fleecing by garages… the ordeals in-waiting are aplenty. It is an uphill battle to get the companies settle your claim and have the garage repair the vehicle, notwithstanding that you have a ‘full coverage’. The trauma you are likely to undergo may be aweful, like what Mohammed Abdurehman (name changed) went through last month.
Abdurehman’s new 4X4 car enjoys ‘comprehensive coverage’ or ‘full insurance’. An iron rod jutting out of a pick-up van left a deep and long scratch on a side of the car. The overtaking manoeuver by the pick-up van, a ubiquitous sight on Doha roads, left a long trail from the front of the car right up to the rear.
The dispute between his insurance company and the insurer of the pick-up truck had him running from pillar-to-post for weeks, before getting his vehicle fixed. Mohammed had to pay QR2,000 to meet his ‘rent-a-car’ bill as his vehicle gathered dust in the open yard of a garage, awaiting a settlement between the warring insurance companies.
Mohammed had shelled out QR6,400 to purchase a ‘comprehensive coverage’ for his car. But his insurance company argued that the repair cost has to be covered by the ‘third- party’ insurance company. As they were not ready for this, his company said it has to go to court before settling the claim. Caught between arguments and counter-arguments among rival insurance companies, Mohammed — a journalist— had to shuttle between the traffic police station and insurance companies more than a dozen times. Finally, an exasperated Mohammed warned his insurer of taking up the issue with top government agencies.
“The insurance companies’ campaigns and commercials often create an impression that their adjusters and claim-processers are waiting to take care of us if and when we need them. But it is not, at least in my case”, says another vehicle-owner who landed in a similar situation.
Every insurance company is tight-fisted while paying claims. They take advantage of legal loopholes, language barriers and our ignorance on complex insurance product, says another victim. According to him, a Toyota Land Cruiser hit his car from behind several months ago. It was the fault of the other motorist. Though the former had ‘full coverage’, the insurance company gave him just 56 percent of the repair cost, leaving him to pay the rest. It took 25 days to fix his car. He had to rent a car for all these days.
Another victim narrates an equally harrowing episode: “My vehicle was involved in a traffic accident months ago. Police specifically reported that I was the victim and not the cause. When I approached the insurance company of the other car, they told me I have to pay 50 percent of the cost of the spares if I wanted a new replacement. Or, I could go for counterfeit parts or the used ones. I had no option but to pay QR3,000 as 50 percent of the cost of new spare parts.”
“Having paid the amount for no fault of mine made me wonder about the use of purchasing a policy?”
Why should one pay for something which came about for no fault of his. In fact, the driver who caused the accident should pay for the extra amount out of his pocket. It is time insurance premiums are linked to drivers’ road safety and driving record. If you drive safely and without violations, your premium would be low but if you cause accidents or get penalty points on your licence, you should pay more, said another motorist who had undergone similar trauma.
Vehicle owners complain that the local insurance companies do not seem to encourage people to go for ‘third party’ insurance which costs less as the premium is much lower than the ‘comprehensive’ one.
Of late, a leading insurance company has shifted its ‘third-party’ coverage renewal office from the city to the Industrial Area. It issues only limited tokens on any given day. Even if you reach the office early in the morning you may not be lucky enough to collect your token. “I went to my insurance office in the Industrial Area for three consecutive days to renew my insurance but I couldn’t get a token as they were issuing just 50 tokens and hundreds waited outside the gate for the office to open at 6.45am. Only 60 tokens were issued in a day and there is only one counter for ‘third party’ insurance. But those who were going for the ‘full coverage’ had the job done in less than five minutes. For them, there was no queue and no waiting. If the coverage is legally mandatory, why are the companies reluctant to offer the service?” says another policy holder.
Language barrier is another villain. Insurance companies strictly go by the police report prepared on the accident. Expatriates who don’t know Arabic cannot make out the content of the report until they reach the insurance office. Their versions often do not reflect in real terms in the police report, they say. The insured also want to bring in the rent-a-car bills under the coverage.
But the Insurance companies differ. “People making sweeping comments clearly do not have any idea about how the system functions. Insurance companies are strictly following the regulations and norms set by the government. The 100 percent payment is given only for the first year of the coverage”, a top executive of a leading insurance company, who didn’t want to be named, told The Peninsula.
According to rules, the insured is liable for the depreciation percentages on different levels for both private vehicles and taxis and rent-a-car vehicles. The spare parts depreciation percentages “excluding taxis and rent-a-car vehicles” for the second year is 5 percent, while third year and fourth year are 10 percent and 15 percent respectively. For the fourth year it would be 20 percent and for the 6th year there is 30 percent depreciation for the spare parts, said a top executive of a local insurance company.
For the taxis and rent-a-car vehicles, the depreciation for the first, second and third years is 10 percent, 20 percent and 25 percent respectively. For the fourth year it is 30 percent. For the fifth year the depreciation is 35 percent in the sixth year it is 40 percent.
On restrictions on ‘third party’ policies, he said they are telling old tales. ‘Third party’ insurance renewal has become very smooth and hassle-free” There is not limit on daily issuance of ‘third party’ policies. The daily limit of ‘third party’ polices had been waived a number of months ago and customers may purchase ‘third party’ insurance daily any time during working hours. For the client’s comfort, ‘third party’ insurance may also be purchased online through a credit card”.
Again, dealing with garages is a tough ride, say policy holders. It is common for insurance companies to keep a list of preferred repair shops that they recommend to their customers. Garages often cut corners while doing repairs. They often use cheaper spare parts and in some cases, may not even repair all the damage. In most cases, they offer two options — “original or duplicate?”, meaning you will have to pay extra if you really want to replace the damaged parts with the original ones. Or else, go for the fake one.
“Garages on the preferred lists work for the insurance companies and want to keep their business, not yours. If your vehicle was fixed by one of these outlets, the vehicle owners should have the option to hire a post-repair inspector to look over the work, which is not available under the insurance law”, says another vehicle owner who had an unpleasant experience with a garage.
Latest data released by Qatar Statistics Authority (QSA) illustrates the concerns of motorists who go by the rule and pay large sums to insure their vehicles. According to the QSA data for 2010, a total of 6,562 motorists are driving on the roads of Qatar without a valid licence. 10,878 drivers are using vehicles that have been banned in the country and without written permission of the licencing authority.
In 2010, traffic radars spotted 53,756 motorists violating the speed limit. 11,951 drivers were caught using mobile phones or other devices while driving.
There were 9,531 cases of failing to keep adequate distance between vehicles. 2010 saw 431,980 cases of traffic violations in the country.
The Peninsula
