U.A.E Insurance premium to rise bad for driversans

 UAE: Insurance premiums to rise for bad drivers

Several insurers in the United Arab Emirates (UAE) have begun charging motor insurance premiums based on drivers' traffic record, as they now have an electronic link to traffic departments via a portal called Markabty launched by the Ministry of Interior. This means that drivers, who have been involved in major accidents or have too many speeding tickets issued against their name, will have to pay higher premiums compared to those with safe driving records. The criteria that insurance companies used previously to determine motor premiums were the age of the driver, his profession, and the date he received his driving licence, among others. This sometimes resulted in an unfair advantage for older bad drivers at the expense of younger drivers who had committed no traffic violations. Executives at Emirates Insurance Association say that the Markabty link has been active since the end of last July, reports the Emirates 24/7 news website. Mr Saleh bin Rashid Al Dhaheri, chairman of Emirates Insurance Association, says that the mechanism will enable insurance companies to maximise profits in the auto insurance sector through a clear understanding of risks associated with bad drivers while at the same time, customers with clean traffic records will be rewarded with discounts on premiums. The discounts range from 20 percent to 35 percent, depending on the length of time the driver maintains a clean record. He says that the association aims to reduce the number of traffic accidents and promote safe driving.

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