Are insurance companies practice of refusing to insure third party legal?
My insurance company(QIC) doesn't want to insure me, unless i come before their opening hours and wait outside their office to be one of the first 100 clients, otherwise they won't insure! Don't mind me telling you how bad and unorganized it is! QICs morning is worst than the bread line people use to stand in to get bread back in the day!
So i thought, with many companies outhere, i can go anywhere! But, unfortunately, All other insurance companies refused to insure me third party, making the excuse that i must go to my original insurer, unless i want to insure full insurance?
Aren't there any law to protect the consumer? Is it normal for insurance companies to make up their rules and regulations to increase their profit, and screw the people?
The bottom line is that the government sets the rate for third pary coverage at a level that is far below the cost to the company for providing such coverage.
Do the math. How could they cover costs if they issue you a TPL policy for QR 300 a year? Full coverage costs 4-5% of the velicle's value (e.g., QR 3000 a year for a car worth QR 60,000). In other words, 10 or more times what TPL only would cost.
While they are mandated by the government to issue TPL to anyone who applies, is it then a surprise that they do not want to encourage people to do so?