AMMAN — Car
rental offices complain that under new regulations, insurance companies are
covering much less car accident liability claims, which the rental firms end up
paying for.
اضافة اعلان
They said that
the added expense forced many car rental offices out of business.
Mohammad Najeeb,
head of the
Jordanian Car Rental Association, said the owners of car rental
offices are forced to pay up to JD100,000, when an accident occurs, as a result
of these legislations.
“These
legislations should return to what they were before,” he told
Jordan News.
“Insurance
companies should raise the ceiling of their protection and the civil liability
should fall on insurance companies, especially since they are large firms and
have the capabilities for full accident coverage,” Najeeb said.
“As a result of this significant challenge facing
the offices, 380 offices closed so far, with 140 still trying to survive,” he
said. “It is expected that more offices will follow suit and close down, if the
problem of insurance coverage is not resolved.”
Majed
Al-Rawashdeh, head of the Tourism, Antiquities, and Public Services Committee
in the Lower House of the Parliament, said that the owners of the car rental
offices are suffering partly from staged auto accident fraud.
“This is costing
them hundreds of thousands of dinars in liability claims,” he told
Jordan
News.
He also blamed
the recent regulations for putting an added pressure on car rental offices.
“Many owners started out as being investors and ended up bankrupt as a result
of these regulations”, he said.
He asserted the
importance of “reconsidering these regulations so as not to increase the number
of offices that may have to close their doors as a result of the bankruptcy of
their owners.”
“The fact that
some insurance companies deceive the owners of these offices is a very
dangerous matter and must be considered, especially since the matter is getting
worse,” he explained.
Abla Weshah, a
spokesperson for the Land Transport Regulatory Commission, told
Jordan News that the head of the commission will meet next Sunday with members of the
Jordanian Car Rental Association.
“If they
officially request us to study and follow up on the issue, this will be done
immediately,” she pointed out.
“We will also
follow up on the matter with the Insurance Department of the Central Bank of
Jordan,” she added.
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