Buruj expects higher motor policy sales on compulsory motor insurance

Buruj Cooperative Insurance Co. (Buruj) said that motor insurance policies sales could increase following the General Department of Traffic’s (GDT) announcement on completion of the automatic linking of motor insurance procedures in its records at the National Information Center.

The step will result in the automated seizure of vehicles with expired insurance policies starting from July 22, 2020, the insurer said on Thursday in a bourse filing.

The decision will have an impact on motor’s gross written premiums (GWPs), the company noted, indicating that it is currently difficult to determine the exact financial impact.

The insurer will disclose any developments in due course.