Sunday, November 6, 2022
Saudi Central Bank issues Comprehensive Vehicle Insurance rules
The Saudi Central Bank (SAMA) announced the adoption of the rules of Comprehensive Vehicle Insurance, which aim to regulate the contractual relationship between the insurance company and the insured, by standardizing the minimum coverage of non-compulsory Comprehensive Vehicle Insurance, and clarifying the provisions of the compulsory and optional coverages provided by the insurance policy.
The Saudi Central Bank clarifies that under the rules of Comprehensive Vehicle Insurance, the insurance company is obligated during the negotiation stage and before issuing the policy, to offer optional coverages to the insurance applicant, which are, coverage for an alternative rental vehicle, roadside assistance, death, physical injury, and medical expenses for the insured or driver.
- Accidents that occur outside the territorial borders of Saudi Arabia, and the coverage of the driver who is related to the insured, the provisions of which were specified when choosing these additional coverages. Trending : Procedure to check Vehicle Insurance validity online
- The rules also stipulated a number of provisions and exceptions, the most important of which are, calculating the insurance value by agreement between the the insurer and insured, the mechanism for applying the amount of deductible, determining the costs of repair by the competent authorities systemically in cases of partial loss, determining the technical total loss according to the report of the competent authority legally.
- As well as to give space for an agreement the insured and the company in estimating the percentage of the vehicle being considered totally destroyed economically, and compensating it with a financial amount based on the insurance value.
- These rules also emphasize prohibiting the name or describing of any insurance products missing the defined Comprehensive Vehicle Insurance provisions as Comprehensive Motor Insurance. Most Viewed : Importing Christmas Tree is prohibited in Saudi Arabia
- The Saudi Central Bank had previously presented the draft "rules of comprehensive vehicle insurance" to the public and specialists for a period of 30 days, in order to explore their views and observations about it, these observations and visuals were studied, and the appropriate ones were taken before adopting the final version of these rules.
