Most flood victims are unlikely to get paid any compensation for lost or damaged property because their policies do not cover natural disasters. This is the assessment of Dr. Ali Al-Tawati, an economics analyst, who said recently that most flood victims will not get compensation because they only have liability insurance. This does not provide cover for a flood or any similar natural disaster. “Most of south Jeddah's residents have liability insurance because it is cheaper than comprehensive insurance,” he said. But even those with comprehensive insurance policies should check their documents. Some comprehensive policies may not have a clause that provides compensation for natural disasters, said Al-Tawati. Official statistics showed that a total of 7,143 cars were lost in last month's floods. The Jeddah of Chamber of Commerce and Industry (JCCI) is expected to hold a meeting soon to discuss the issue, according to Roper Baho, an insurance expert and chairman of Tawuniya Insurance Company. Baho said many insurance companies have asked whether the Jeddah flood was a natural disaster or an accident. Baho said that only people covered by comprehensive insurance policies will be able to claim from the insurance companies. This is called Shamel insurance. A shocked resident, Basim Abdullah, said his insurance company rejected his application because he did not have comprehensive insurance. “The flood took everything from us and now the insurance company is not helping us, even with five percent, just because we don't have comprehensive or Shamel insurance,” said Abdullah. “The insurance company rejected my report to repair my car because I only have a liability insurance contract with them which does not include disasters,” he said.
