Monday, March 24, 2014

Different kinds of Vehicle Insurance in Saudi Arabia

Need for Vehicle Insurance in Saudi Arabia
It is very important in Saudi Arabia to cover your vehicle with the vehicle insurance. In the below lines, we have explained some reasons why it is very much important to insure yourself and your vehicle. If you want to check the validity of your vehicle insurance, please click here.

High Mortality Rate
Saudi Arabia is one of those places where accident ratio is very high so you should never ever even think to drive your car without vehicle insurance. According to Arab News, 19 people die daily in Saudi Arabia due to road accident. It means 1 out of every 86 persons die in Saudi Arabia every 5 years due to road accidents in Saudi Arabia. If you are driving car without vehicle insurance, you are actually putting yourself in high risk. This is just mortality rate which is in the cases of severe accidents. Number of normal accidents is at least 20 times more than that.

It is an Islamic rules that if someone is died due to you, accidently or intentionally, you will have to face the consequence which may lead to death. Now this point should be noted that even if someone died in a road accident and it was not even your fault, still then you will have to pay the blood money. According to recent calculations made by Saudi Government, Blood Money (Diya) is set to be SR 300,000/- for unintentional cases and SR 400,000/- for murder cases. It is actually value equivalent to 100 camels. If you don’t pay blood money, you will be hanged to death. Now just think, if you are not insured and more than one person dies in a road accident involving you, how would you arrange money?

Claiming Blood Money for someone who has died in KSA is not an easy task to perform. I have explained it in this article for your ease. "Death Compensation Procedure"

Processin case of Road Accident
  1. We have explained the Process in case of Road Accident in this article

Types of Vehicle Insurance in Saudi Arbaia
There are two types of vehicle insurances which are generally used in Saudi Arabia.

Third Party Insurance
This insurance is must for your vehicle. It covers the other party in case of accident involving your mistake. Now days, coverage of insurance companies is enough to provide for blood money of 3 persons. When getting the vehicle insurance for your vehicle, make sure to check how many persons are covered in it. What is the coverage amount?  Coverage amount in case of third party insurance which my friend booked was SR 10 million. If you want to see the list of approved insurance companies in Saudi Arabia, click here “List of Approved Insurance Companies”.

Special Tip: You are going to insure the other party’s vehicle in case of accident involving your mistake. It means other party will have to look for the insurance claim. So, even if you take the insurance policy of some low rated company for the lower rates, it will be perfect for you. There is no need to contact insurance companies with premium rates like Tuwaniya.

Comprehensive Insurance
In comprehensive insurance, both parties are covered in case of any accident. If your vehicle is damaged in case of accident involving your fault, your insurance company will provide you all the repair and maintenance. People purchasing new cars should take comprehensive insurance. Normally insurance companies don’t insure your vehicle for comprehensive insurance if it is more than 10 years old. If you want to see the list of approved insurance companies in Saudi Arabia, click here “List of Approved Insurance Companies

You can also add some features in your vehicle insurance by paying some more money. These features are;
  • Provision of a courtesy car if the insured vehicle needs repairing
  • Roadside assistance and recovery services
  • Off-road driving (in an off-road vehicle)
  • International cover when driving in Bahrain, Qatar or other Gulf Co-operation Council countries

Special Tip: You are going to insure your vehicle in case of accident. It means you will have to go through all the processes of claiming the money. Now you should look for a well reputed company since your personal stake is involved. Even if you have to pay some more money, you should pay it for some premium insurance companies.

Documents Required for Insurance
Following documents are required to be submitted to the insurance company if you want to insure your vehicle in Saudi Arabia.
  • Valid passport
  • Iqama (residence permit)
  • A valid driving licence
  • Istimara (vehicle registration)
  • Proof of vehicle ownership
  • Proof of any no-claims discount
I am highlighting again, you should check for the clauses of blood money in the insurance policy before signing it.


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