Risk And Insurance Assessment Answer

UAE insurance can now use a single database as a motor insurance company can now share a database driver which will help them to distinguish between good and bad drivers and therefore they can charge lower or higher premium. The common database will make it very easy for any insurance company to determine the risk of a single driving person instead of using general notification like- age, nationality of the drivers and the experience of the driving. (Kassem, 2015)
It will also help the insurance company to find out the driver with a history of accident should pay a higher premium than careful drivers. It will also help to check whether there is any earlier fraud claim or not. When the database was separate for the insurance companies the drivers after a bad accident just change their insurance company who charged them a lower premium without verifying any earlier accident with the single database it helps to find out which vehicles were involved in the accidents and what kind of repair/ extensions has been done to that accident vehicles because some agencies/garages are very good for hiding any accident and defects so that nobody can check that defect and safety issue of the vehicle is unbroken. The single database helps to reduce the exposure of fraud claims and data of vehicle claims and recurring claims by chassis number, engine number and driving license. This common data helps to deliver the information to the government, enabling it to identify the drivers with their old accident history and vehicle repair. It should also be a strict rule for an insured or policy holder to get a claims free record from the previous insurance company before shifting to another insurance company. So that no policy holder can make any fraud or mistakes. There are many data devices that can installed, which helps to reduce car insurance premium in UAE. 
To reduce the cost of vehicle insurance car owner fit their vehicles with speeding monitors, which help to control the speed and rash driving. They also use data loggers and on vehicle monitors to measure the speed, specify for buses and trucks and they also use GPS technology to monitor how much fast a person is driving and if they exceed the speed limit they to pay huge fines. 
GPS technology helps you that if you are involved in an accident and you are not on over speed and you are not driving rash then your driving will not blame and they have also provided a facility that if an insured or a policy holder will stay within speed limits or not drive rash for the first year a good discount will be available at the time of renewal of the same policy in the next year. It will always help to reduce both accidents and cost of policies and if the data will be on a single database. Then nothing can hide from any insurance company and losses will be less for life as well as vehicles because of the road safety. (4- Traders.com, 2015)

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