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?
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?