A call to change behaviors after traffic accidents
Engineer Mansour Abuthnain, CEO of Najm Insurance Services, reiterated his call to drivers in Saudi Arabia to move their vehicles off the road immediately after minor accidents that do not result in injuries. In a statement to Okaz newspaper, Abuthnain emphasized that leaving vehicles at the scene of an accident obstructs traffic flow and causes severe congestion, exacerbating the problem and potentially leading to secondary accidents.
He explained that the aim of this initiative is to raise traffic awareness and instill a culture of social responsibility among drivers, emphasizing that the rights of all parties remain fully protected even after the road is cleared. He summarized his message succinctly and clearly: “Move your vehicle first, then report it,” indicating that the first step is to secure the scene and move the vehicle to the side of the road, and then complete the accident reporting process via the Najm app or by calling the unified number.
General context and the role of Najm Company
These statements come within the framework of the Kingdom's ongoing efforts, represented by the General Directorate of Traffic and Najm Company, to develop the system for handling traffic accidents. Najm Company was established in 2007 as a link between insurance companies, policyholders, and government agencies, with the aim of expediting and simplifying accident handling procedures. This has significantly contributed to reducing the burden on security agencies and automating the claims process. The initiative to move vehicles in minor accidents is an integral part of the traffic safety strategy and the Kingdom's Vision 2030, which aims to reduce road accident and fatality rates.
The economic impact of minor accidents on insurance rates
Abu Thnein revealed a worrying fact: minor accidents in Saudi Arabia continue to see an annual increase of between 10% and 15%, despite a noticeable decrease in serious and fatal accidents. He pointed out that this ongoing rise in minor accidents is one of the main drivers behind the increase in vehicle insurance premiums.
He said, “Insurance prices are closely linked to what happens on the roads; they rise with increased accident rates and fall with decreased ones.” He added another influential factor: the significant increase in vehicle and spare parts prices over the past few years, with the prices of many cars doubling. This has directly impacted the cost of compensation paid by insurance companies, and consequently, the value of insurance premiums borne by the end consumer.
Insurance policy pricing standards
To further clarify the matter, the CEO of Najm explained that the pricing process for insurance policies is not arbitrary and does not depend on a single factor. Rather, it is a complex process based on between 20 and 40 different indicators, most notably: the driver's accident history, the type and model of the vehicle, the driver's age, and the city where the vehicle is used, in addition to other factors included in internationally recognized risk assessment models. He emphasized that linking the price solely to the type of car or the accident history is an inaccurate understanding of the mechanism employed.
He pointed out that achieving one of the strategic goals of reducing the accident rate by approximately 30% will contribute in the future to restoring balance to the market and significantly lowering insurance prices. He also drew attention to the increasing number of accidents involving motorcyclists, especially those working for delivery apps, emphasizing that Najm is working on awareness initiatives targeting this group in their various languages to promote safe driving and reduce accidents involving them.
