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Posted On: 20 December 2009 01:13 pm
Updated On: 12 November 2020 02:10 pm

Vehicle insurance premiums likely to be increased

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Insurance providers say they are eagerly awaiting a green signal from the authorities concerned to raise third party motor insurance premiums, despite the fact that their revenues and profits have been going up year after year. Statistics suggest that while the insurance industry is suffering worldwide due to the global financial crisis, the sector remains robust in Qatar. Premium collection in the country was QR2.5bn in 2008 and the figure is expected to go up slightly this year. Figures show that the collection amount has been steadily increasing since 2006, when it was QR2.2bn, improving to QR2.4bn the next year. Net profits of the sector were around QR1.5bn in the first three quarters of this year. According to a senior official of Qatar Islamic Insurance Company, insurance providers have been suffering huge losses due to motor insurance. “We offset these losses from income from other segments of our business,” the official said. He added that the industry was now eagerly looking forward to the launch of a health insurance scheme as also approval from the authorities to raise motor insurance premiums.