SAMA issues comprehensive motor insurance rules

SAMA’s headquarters

The Saudi Central Bank (SAMA) announced the issuance of the comprehensive motor insurance rules, which aim to regulate the contractual relationship between the vehicle insurer and the insured, according to a statement.

This comes by standardizing the minimum coverage limit of the non-compulsory comprehensive motor insurance. This is in addition to outlining provisions of the compulsory and optional coverage schemes to be provided under the insurance policy, it added.

SAMA also clarified that these rules set an obligation during the negotiation stage on the insurer, under which the latter shall offer the insured an insurance coverage for an alternative rental vehicle, roadside assistance, death and physical injuries, medical expenses for the insured or driver, accidents occurring outside the territorial borders of the Kingdom and coverage of the related drivers.

Some provisions and exceptions were stipulated, most importantly calculating the sum insured based on an agreement between the insurer and the insured. This is besides provisions of applying the deductible amount, determining the repair cost by the competent entity in charge of automobile damage appraisal in case of partial loss and in the technical total loss as decided by the competent entity, as well as allowing for the insurer and the insured to agree on the percentage to consider the vehicle as an economic total loss and to compensate the insured based on the sum insured.

These rules also prohibit naming or describing any insurance products missing the defined comprehensive motor insurance provisions as comprehensive motor insurance.