Why is there no Automobile Insurance in Pakistan?

[Darr]

• becuase its unislamic (insurance is not allowed in islam)
• Because repair , parts and labor is cheaper, then whats the point ?

The moral behind insurance is to make our lives safe and secure.

 

[punit]

• becuase its unislamic (insurance is not allowed in islam)
• Because repair , parts and labor is cheaper, then whats the point ?

utter nonsense. Is car is allowed ?

 

[sparten]

All new vehicles have to be insured.

 

[unbiasedopinion]

• becuase its unislamic (insurance is not allowed in islam)
• Because repair , parts and labor is cheaper, then whats the point ?

Please tell me you were only kidding....

 

[SMZ93]

What happens when you bang or the vehicle is stolen? Or a tree falls on it?

A tree falling is an Act of God! xD No claims.

 

[Basel]

Are you serious ?

Insurance is un-islamic that is why Takaful is introduced.

 

[laphroaig]

A tree falling is an Act of God! xD No claims.

I think in India floods etc are covered.

 

[.]

Becauseeee One of the biggest mafia in Pakistan is in the Automobile Industry,They sell a mehran for 7 Lacs,I bought a new mehran and couldn't stand it and sold it in less than 2 months.

 

[SMZ93]

A few points..

This is Pakistan. Where GDP isn't as good as compared to foreign countries, mainly UK, US, AU. In simple words, people earn much less and are very kanjoos. They wont bother spending on Insurance. Yes, there are several insurance companies doing their jobs, especially when you buy a new car on Instalments, with Banks and stuff, you have to purchase an insurance along with it.. But long story short, people don't earn that much to afford insurance.

I've spent almost all my life abroad. Mainly the UK, and Australia. People earn, and they don't hesitate in spending money. Just because they earn £7.20/hr (Rs. 975/hr) in the UK or $17.70hr (Rs. 1390/hr) in AUS. Most people including me work 12 hrs, 5 days a week. Some Bangladeshi and Indians work 6 or even 7 days, but generally 4 - 5 days is a norm.

Working 12 hrs in 1 day earns an average of,
£86.4/day or Rs. 11,700 in the UK
$212.4/day or Rs. 16,680 in Australia.

Taxes for me is 22%, but in the UK it's 20% and varies to max 21.9% in Australia. Make that 30% for all other payments, such as National Insurance Contributions, etc.

An average person in the UK would take home Rs. 8,200 per day, and an avg. person would take home Rs. 11,600 in Aus.

Give me one reason why they would bother running after money or not spend tonnes on insurance? If they earn between Rs. 1.6 lac and Rs. 2.5 lac, why would they not want to spend on Insurance and other things? Bring that table to Pakistan and you'd understand the difference. If a person wants to purchase a new mobile worth Rs. 40k in Pak, they have to think 3 - 4 times. Things are doable due to much more money in the system abroad.

Lastly, just a question. What about the 30+ year old cars like Suzuki IFZ, Mehran, Alto, Bolan, Daihatsu Charadu and 1980 Jeeps and other cars and stuff. Several on Pakistani roads. There's never a possibility for an auto insurance for every single vehicle on the road, and several cars are years and years old, making their drivers much more careless.

Quote from a friend, when I was in Pakistan. "Yaar meri gaari ka sab se bara maza yeh hai ke jidhar lagay koi tension nahin. Zero meter gaari lo ya nai gaari ho to ek scratch pe jaan nikal jaati hai" (He had a Toyotal Crown 1990s model) He also taunted the people driving Audi's and BMWs worth crores that what would they be feeling on the road when they see cars like ours and motorbikes, thinking if someone hits them, as their bumper alone would cost more than my car. xD

This is the harsh reality of Pakistan. Just my 2 cents. My cousin had a Honda Accord 2014 and personally he used to be really scared while driving on the road, same with my uncle having a Lexus RX450. He was actually worried when he came to pick us at the Airport LOL.

 

[laphroaig]

A few points..

This is Pakistan. Where GDP isn't as good as compared to foreign countries, mainly UK, US, AU. In simple words, people earn much less and are very kanjoos. They wont bother spending on Insurance. Yes, there are several insurance companies doing their jobs, especially when you buy a new car on Instalments, with Banks and stuff, you have to purchase an insurance along with it.. But long story short, people don't earn that much to afford insurance.

I've spent almost all my life abroad. Mainly the UK, and Australia. People earn, and they don't hesitate in spending money. Just because they earn £7.20/hr (Rs. 975/hr) in the UK or $17.70hr (Rs. 1390/hr) in AUS. Most people including me work 12 hrs, 5 days a week. Some Bangladeshi and Indians work 6 or even 7 days, but generally 4 - 5 days is a norm.

Working 12 hrs in 1 day earns an average of,
£86.4/day or Rs. 11,700 in the UK
$212.4/day or Rs. 16,680 in Australia.

Taxes for me is 22%, but in the UK it's 20% and varies to max 21.9% in Australia. Make that 30% for all other payments, such as National Insurance Contributions, etc.

An average person in the UK would take home Rs. 8,200 per day, and an avg. person would take home Rs. 11,600 in Aus.

Give me one reason why they would bother running after money or not spend tonnes on insurance? If they earn between Rs. 1.6 lac and Rs. 2.5 lac, why would they not want to spend on Insurance and other things? Bring that table to Pakistan and you'd understand the difference. If a person wants to purchase a new mobile worth Rs. 40k in Pak, they have to think 3 - 4 times. Things are doable due to much more money in the system abroad.

Lastly, just a question. What about the 30+ year old cars like Suzuki IFZ, Mehran, Alto, Bolan, Daihatsu Charadu and 1980 Jeeps and other cars and stuff. Several on Pakistani roads. There's never a possibility for an auto insurance for every single vehicle on the road, and several cars are years and years old, making their drivers much more careless.

Quote from a friend, when I was in Pakistan. "Yaar meri gaari ka sab se bara maza yeh hai ke jidhar lagay koi tension nahin. Zero meter gaari lo ya nai gaari ho to ek scratch pe jaan nikal jaati hai" (He had a Toyotal Crown 1990s model) He also taunted the people driving Audi's and BMWs worth crores that what would they be feeling on the road when they see cars like ours and motorbikes, thinking if someone hits them, as their bumper alone would cost more than my car. xD

This is the harsh reality of Pakistan. Just my 2 cents. My cousin had a Honda Accord 2014 and personally he used to be really scared while driving on the road, same with my uncle having a Lexus RX450. He was actually worried when he came to pick us at the Airport LOL.

Bro India is pretty much the same.

But Third Party insurance you HAVE to have BY LAW. New vehicle or old.

Comprehensive insurance that covers your own losses is voluntary.

 

[Path-Finder]

This will open the doors for for Insurance fraud and so on. However Insurance should be mandatory for any eventuality that may take place behind the wheel.

 

[zebra7]

I was just wondering

How come there is no Auto Insurance ? In Pakistan

In Western Society , the Auto Insurance does few positive things in Economy

a) It creates Jobs in Insurance sector , Insurance advisors , customer support , claim agents etc

b) It gives protection to people in time of serious accidents , helps replace or repair your car. Helps protect you
if you kills someone in accident and you get sued in court

c) It forces people to drive safely or their Insurance rate will go up , if it is too high then you can't drive your driver license is cancelled. Car is confiscated

d) Expensive cars like BMW etc have higher rates of insurance

e) Car insurance also covers for Theft incidents


Motor Bikes have the "MOST EXPENSIVE insurance premiums due to dangers to society and danger of lethal accidents



> Police force , can better control illegal cars by checking Insurance coverage

In return may be the Insurance sector can contribute a premium into Police Force , by means of Direct funding to police department based on number of insured cars on road. Extra funding to increase police salaries


Insurance also forces , smaller numbers of cars on road


This sector could easily create Million Jobs in Pakistan


People who are caught with no insurance get their licence revoked , cars sent to recycle

It is funny becasue car insurance help identify terrorist as well, most of time the Terrorist will not have any insurance paper

Typically if there is a criminal Warrent for a person , the info is channelled from police system to the insurance company so whenever the person is stoppped at road by police and they check his profile they will know he /she is a criminal wanted

Most police officers in Western Society ask 2 things (Ownership paper + Insurance)

Becasue of the fear of hig premium (monthly payments for insurance) if they get into acccident people all drive very carefully and it all contributes to a safe road experience


Some possible Job titles

> Insurance Broker
> Insurance Manager
> Under Writing agent
> Customer Service Representative (Call Center)
> Territory Managers

Indirect Jobs:
> Mechanical work done on car repairs done with Insurance company's approval
> Appraiser who judges the damage in accident prepares estimates
> Tow Truck
> Painters who paint the cars after accident brand new
> Auctioneers who buy write off cars and sell parts of it after purchase
> Car parts company in Pakistan sells new parts for repairs less chance of dented car running around city

>Lawyers pressing claims against insurance companies for negotiation of claim

Wellness Jobs:
> Nurse and Attendant care after accident paid by insurance company
> Physio therapy consultant

Private care in hospital:
>Paid for by insurance for legitimate accidents

> Fines for insurance violators (Revenue for Police department)
> Fines for people who have insurance but can't produce copy for officer

> Lawyers who work with claims against bodily harm (if you hit a person etc break their arm or kill somoene)


> Storage facilities where violator's cars are kept for demolishing or sale for unclaimed cars after certain days


Plus: Insurance dictates you install steering wheel blockers, GPS hidden locator etc so new gadgets are always being sold to consumer

What in Pakistan, there is no Auto Insurance ? What if the vehicle is stolen, or an accident occur on road ??

 

[Deidara]

A very good point raised by op. Auto insurance should be mandatory for all kinds of vehicles. It will greatly reduce the insurance cost people are paying at the moment. If my memory serves me right I bought insurance for one year for my new car for 50000 six months earlier. If auto insurance was mandatory in Pakistan this much money could have bought lifetime insurance.

 

[LOGICAL BOSSS]

There are 10's of car insurance if not 100s . search before speak

In India you cant run your car without Insurance, But may be this is not applicable in backward countries.

 

[laphroaig]

A very good point raised by op. Auto insurance should be mandatory for all kinds of vehicles. It will greatly reduce the insurance cost people are paying at the moment. If my memory serves me right I bought insurance for one year for my new car for 50000 six months earlier. If auto insurance was mandatory in Pakistan this much money could have bought lifetime insurance.

Not really. Your 50000 is our 25-30,000. That's how much I would pay for my 3 year old SUV in another 2 years from now. Annual.