New vehicle insurance regulations authorise policyholders to make repairs worth SR5,000 to cars damaged in accidents
New vehicle insurance regulations proposed by the Jeddah Chamber of Commerce and Industry (JCCI), Saudi Arabia, authorise policyholders to make repairs worth SR5,000 to cars damaged in accidents without the prior approval of insurance companies – reported Arab News.
If the total cost of repair is 75% of the value of the vehicle or the damage is beyond repair, then the total value of the car should be paid minus depreciation at the rate of 1% per month.
In the event of a partial damage to a vehicle, the cost of repair should include the price of replacement parts, costs of labor, cost of transportation and any other costs as specified in the insurance policy.
If the car is between five and ten years old, then the insurance policies will only cover 75% of the replacement of spare parts. If the vehicle is more than ten years old, then only 50% of the cost of spare parts will be covered. The maximum third party liability is fixed at SR5 million for physical injuries or deaths a year.