doha • As the premiums for motor insurance remain unchanged, there are some risk-underwriting firms which still show reluctance, albeit occasionally, to provide motor cover in violation of rules.
According to sources in the insurance industry, people with complaints about companies not renewing motor insurance policies are often those whose vehicles have been involved in major accidents.
Insurance providers say motor cover continues to be a loss-making proposition for them, besides posing problems like having to fight court battles over compensation and claims.
A resident, Mohamed Adam, was shocked when the insurance firm that had provided cover for his car last year refused to renew the policy this year. "I was told that since my car was involved in an accident which caused the company huge loss, the policy wont' be renewed," he said.
Insurance providers say as there are more vehicles and more accidents, their liabilities and losses are soaring. "This is the only segment of our business where we have been suffering huge losses," said an employee of an insurance company, of motor cover.
Adam said that after the company refused to renew his car policy, he went to another firm. "I was asked to go back to the company which had provided me the motor cover last year," he said.
Industry sources say companies dread listing new customers and so think of ways to avoid underwriting risks for old cars coming to them for the first time. "This is the only business (motor cover) we wish to see going to a rival," said the source.
But insurance companies are not to blame, say industry sources. The average vehicle repair costs have more than doubled since the early 1990s, from QR2,200 to QR4,500, say sources citing recent studies. Automobile prices have similarly gone up.
