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QATAR
CONSUMER REVIEW – TRANSIT INSURANCE A few tips to consider when purchasing a transit insurance policy By Shereen D’Souza
In this new series – which we start with a complaint from a consumer who had a bad experience while purchasing a transit marine insurance policy - bq magazine investigates consumer complaints and offers tips on the right questions to ask. In Qatar, as in the rest of the GCC, many residents and locals either drive to neighbouring countries or move their vehicles to destination countries through land or sea, so when they arrive they have their vehicles to use. This is especially the case when families go on long summer vacations and prefer this alternative to renting a vehicle. The consumer’s story “I wanted to move my brand new Range Rover to India and decided to purchase a marine transit insurance policy for the same since the car was fully paid for. I made it clear to the insurance broker I wanted comprehensive coverage that would even take care of a scratch even. I was assured the policy I was paying for would cover it all – from my house in Qatar to warehouse, the ship, the warehouse at my destination and to my www.bqdoha.com
home there. The broker went to a big local insurance company for the coverage and I paid QR 3600 - 0.9 percent of the car’s value - as premium for the return trip.
“En route back to Qatar, the car had a broken tail-light and minor scratches to the bumper. I thought this would be fixed very quickly based on the policy I had purchased so I was
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stunned when the insurance company refused to do so. Emails between the broker and insurance company went back and forth, using technical terms I had no knowledge of and at the time of purchasing the insurance, hadn’t looked at into closely since I had just assumed my vehicle was covered for everything as I had asked. Now when I asked for a clarification in layperson’s terms I was told the policy covered the vehicle if it was on fire, or the ship carrying the vehicle drowned – not exactly the “everything from a scratch” I had asked for. “My problem was compounded by the fact that I could not get the car repaired in Qatar as the accident didn’t happen on land in Qatar, and I could
not get a police report for the same. As everybody knows, you can’t repair a car here without a police report. But what shocked me the most was the subtle threat of a policy deductible (that was never mentioned when I purchased the coverage) the insurance company made hoping I would stop going after them for the claim. I still don’t know how I can get my car fixed.” Excerpts from insurer’s email "We understand that the vehicle was damaged, probably due to rough handling during transit. The policy you have arranged is restricted cover. [Institute Cargo Clause (C)]. Please note that such type of damages
are not covered in the policy above. Further there is a policy deductible of QR 5,000. Trust you will agree to close the file as ‘no claim'." Send your consumer complaints to editor@bqdoha.com with corresponding evidence and bq magazine will address them so other consumers are aware. While Qatar’s libel laws forbid the mention of individuals or organizations in media reports, consumer complaints ensure businesses operating here adhere to best practises. Always make a formal complaint with Qatar’s Consumer Protection Department www.mbt.gov.qa/English/Consumer/ Pages/HowToComplain.aspx
Top 10 things to look out for when purchasing an insurance policy (including transit insurance)
Plan ahead Give yourself enough time before your journey to collect the required information and take an informed decision.
Compare policies Planning ahead ensures that you have sufficient time to take quotations from different companies and compare them when you get a chance. This will ensure you know what options are out there and which ones are the most suitable for you.
Read the policy document This is something that insurers don’t give out as a common practice. Ask for it and read it thoroughly.
Inclusions and exclusions If you don’t have the time to read an entire policy document, at least ask for the list of inclusions and exclusions. This will help you determine what you policy covers and what it doesn’t. Most of the time, important aspects are excluded and you might have to pay extra for it.
Use reputed companies or brokers It is always advisable to go through an international and/or reputed company. Their prices might be higher, but their percentage of paying off claims will be higher too. Since they have more streamlined and universal practises, there’s a better chance of you getting your claim and not getting duped.
Check for policy deductibles On several occasions, insurers don’t give any clarity with regard to policy deductibles and do not even mention it most of the time. Ensure you clarify this to avoid paying outrageous amounts as policy deductible at the time of the claim.
Always use a company Instead of individually getting a transit insurance policy, it is recommended that you go through a company who will take care of all this and charge a service fee.
Ask for company document and maintain records When you go through a company, ensure you ask for their documentation on claim payments so that you are on the same page when a claim arises. Ensure that you have copies of all documents pertaining to the policy.
Do not rush into it A lot of the times, people are rushed into taking an insurance policy either by brokers or agents or other third parties. Do not fall prey to those who do not give you sufficient time to read and understand everything the policy covers.
Don’t go for the cheapest policy The cheapest policy may not be the best one. Always look for the policy which has inclusions most relevant to your case, irrespective of the price.
JUNE 2015