In 2016, the service of discounting the absence of claims (entitlement) was launched under the supervision of the Central Bank of Saudi Arabia in cooperation with Najm Insurance Services Company and insurance companies in the sector, with the aim of motivating insurance policy holders to renew their policies before their expiration and to continue with insurance every year, which leads to an increase in the insurance prevalence rate And its cost decreases by increasing the number of the insured, as the discount increases every year with the insured’s commitment to the conditions for entitlement to the discount and the existence of an insurance record free of insurance claims!
And because digitization has become a fundamental pillar for the advancement of all sectors, Najm has allowed insurance policy holders to view the “eligibility” discount rate through the Najm website or the Najm application, which consolidates the service and enhances Najm’s digital strategy. Digitization can also guide the insured on how to achieve the highest discount, which amounts to 60% of the value of the comprehensive insurance policy, after 5 years have passed while adhering to the terms and conditions of service, while the discount rate reaches 50% for third-party insurance, according to the same terms and period!
Most notably, the updates on the eligibility discount stipulated that the discount is calculated based on the insurance record of the insured (master NCD) and not based on the vehicle record. The most important factor affected by the (entitlement) deduction is the lack of insurance for one of the vehicles owned by the insured, and this is affected by the number of days of discontinuation of the insurance when the insurance policy expires. Therefore, the insured must renew the insurance policy before it expires in order to avoid losing the deductible during the period of discontinuation of the insurance!
These updates stimulate the continuity of vehicle insurance without interruption, and encourage safe driving with the aim of maintaining an insurance record free of claims, which increases the discount rate and achieves traffic safety targets as included in Vision 2030!
In short, the commitment of the largest segment of society in issuing and renewing insurance policies achieves stability in the insurance market, reduces its cost, and rewards the insured with more discounts!
Khaled Suleiman