By Majid Al-Shabib
Riyadh-Mubasher: Some investors called for urgent solutions for the challenges facing the transport sector such as strong rise in the vehicle insurance rates, which weighs on the sector and may lead some companies to exit the market.
At an open meeting organised by Riyadh Chamber of Commerce on Wednesday, the investors confirmed that the strong increase in the vehicle insurance rates impacted the sector and clients, adding that this rise led some customers to refrain from insurance.
Indicators show that the number of those not enjoying the insurance service will likely increase by nearly 50%, and this percentage may also rise further as a large number of low-income citizens are not able to bear the insurance costs, the investors said.
The meeting highlighted the efforts exerted by the transport committee to handle the issue through revising the vehicle insurance rates which reached 400%.
This increase led to the creation of a black insurance market, which contradicts the royal directions related to the cooperative insurance monitoring system, said the committee.
Translated by Abdul Maguid Aboshahla
