Gulf Warranties in Qatar

The extended warranty will be provided only to new vehicles initially in Qatar, Doha Insurance and Dubai's Gulf Warranties said last night while coverage for used vehicles will be offered later.

The extended warranty, a product quite different from the ordinary motor vehicle insurance, takes effect once the coverage provided to new vehicles by the dealers' ends. The extended warranty doesn't cover accidents or mishaps such as fire as motor insurance does.

The agreement was signed on behalf of Doha Insurance by its chairman, Sheikh Nawaf bin Khalid al-Thani and for Gulf Warranties by its general manager, VR Ajitkumar last night.

Doha Insurance general manager Bassem Hussein said the new product was unique in that it provided coverage against all mechanical and electrical problems of vehicles at affordable rates.

Gulf Warranties has provided extended warranty to some 200,000 vehicles, since the firm was established in 1994. As many as 70,000 claims totalling $20mn have already been settled.

Ajitkumar said all types of vehicles, irrespective of their make, could be provided extended warranty. Basic coverage that takes care of ordinary electrical and mechanical problems and superior coverage, which provides warranty against major snags like those affecting air conditioners, are available.

Extended warranty applies in the entire Gulf region, which means a Qatari registered vehicle under the coverage can put in claims in the UAE or in Saudi Arabia and have them processed within a day or so.

The authorised dealers or approved garages will test vehicles. Only genuine spares will be fitted in the vehicles.

Cecil O'Brien, Gulf Warranties deputy general manager said the extended warranty to used vehicles would be introduced in the Qatari market later.

Since a lot of financing is now available even for used vehicles, the scheme does make sense for that category as well. But very old vehicles may not get the benefits of this scheme since coverage for such vehicles also depends on an assessment report by the firm through dealers and approved garages. Warranty for used vehicles will be on a short-term basis, often extending up to six months, renewable with conditions.

"We are also negotiating with banks to offer the unique product while sanctioning vehicle finance," O'Brien said.

Doha Insurance managing director, Adel Ali bin Ali and representatives of prominent dealers including Almana Motors, Nasser bin Khalid & Sons and Qatar Automobiles Company were also present.