‘Give young drivers fairer deal on car insurance’
Stop discrimination, says politician
Drivers who have just passed their test should be treated the same as other motorists by insurance firms, a member of the Federal National Council (FNC) has said.
Hamad Ahmed Al Rahoumi, a member for Dubai, yesterday told a FNC meeting that some insurance companies were making it hard for new drivers to insure their cars by charging them extra, while others even refuse to insure cars for people under 25.
“All drivers should be treated the same way by insurance companies,” he said. “Why is it that new drivers have to pay much higher premiums for insuring their cars as compared to experienced ones? I think this is unfair and it should stop.”
Al Rahoumi has raised the issue with Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of the Insurance Authority.
Al Rahoumi added: “In some instances, drivers below 25 years of age find difficulties to have their cars insured. Firms don’t want to insure cars for these beginner drivers.” In a written response to Al Rahoumi’s question, Al Mansouri said insurance firms are restricted by law from discriminating. “Motor insurance firms are supposed to be transparent. They should treat all customers the same way,” Al Mansouri wrote. “All drivers - new, young or old, female or male - must have their cars insured by the insurance firms without discrimination.”
The minister said firms can only refuse to insure someone if the person has a very long record of accidents or traffic violations.
Al Mansouri said people who feel they are being discriminated against can complain to the Insurance Authority.
He added that the authority received 3,942 complaints last year from customers.