By Staff writer
Qatar Central Bank orders firms to base premiums on motorists’ records
Car insurance firms in Qatar have been permitted for the first time to charge a higher premium for “risky drivers”, it was reported on Sunday.
Qatar Central Bank (QCB) last week issued a circular to all insurance and reinsurance companies in the country asking them to calculate premiums based on motorists’ records, according to Gulf Times.
It means comprehensive insurance policies for vehicles belonging to drivers who have caused accidents or violated traffic laws in the past will be more expensive.
QCB claimed the move would make Qatar’s roads safer for drivers. The circular dated July 21 stated: “All insurance policies for mechanical vehicles should include a clause indicating the risk factors (such as the record of the history of the motorist's driving).”
“The higher the risk of the motorist, the higher the premium,” it added.
Insurers have reportedly also been asked to take into account the type of vehicle and distance covered by the motorist in the previous year when setting premiums.
And QCB has imposed new requirements on them to provide the bank with a report containing “mid-annual statistics on the black spots in the country” – where accidents take place frequently – and the reasons for it.
Insurance firms must display the circular at their headquarters and branches to clarify the new rules for customers, the newspaper said.For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.