Al Rajhi Takaful says construction guarantee insurance targets govt, semi-govt, private sector projects

Logo of Al Rajhi Takaful

Al Rajhi Company for Cooperative Insurance (Al Rajhi Takaful) recently announced obtaining the Saudi Central Bank’s (SAMA) approval on its construction guarantee insurance product for the corporate sector.

In a statement to Argaam, the insurer said the product provides insurance coverage for real estate developers and contracting companies to cover the defects that may appear after the completion of construction and may cause damage to the existing facilities.

The company added that the product also covers losses resulting from defects in electrical, mechanical, plumbing, as well as internal and external finishes. However, collapses and fires are excluded from the coverage. The policy period is up to 10 years, and the insurance begins from the date of the certificate of occupancy.

According to the statement, the target group of the policy includes the projects of government and semi-governmental sectors, as well as the existing private sector, which have not yet been occupied and are outside the framework of coverage and scope of the mandatory insurance policy against the hidden defects as approved by SAMA.

The move comes in line with Vision 2030 to redefine the concept of insurance in the Kingdom by providing innovative and reliable value-added protection solutions.