SAMA issues an update to the unified policy for the compulsory vehicle insurance

Riyadh, Saudi Arabian Monetary Authority (SAMA) has announced the issuance of an update to the unified policy for compulsory vehicle insurance, which is due to commence on 15/12 / 1439H corresponding to 26/08/2018. One of the most prominent amendments to the document is that, in contrary to previous practice, now it covers the driver aged 18 years and above and holds a driver's license. Additionally, an obligation is imposed on the insurance company to deposit the amount of compensation after claim settlement through the bank account of the beneficiary directly into the International Bank Account Number (IBAN). The amendments of the document included also the organization of the claims receipt based on enforceable judicial judgment so they can be provided by the natural person or by his/her legal representative or the legal representative of the legal person who are injured by non-exceptional risks in the policy. The document also systematized the settlement of the damaged vehicle that had repaired already before the claim is submitted. In such cases, the claimant must provide the company with proper invoices of the reparation, on the condition that the accident must be handled directly by an authorized party and to provide the company with an evaluation report of the vehicle's damage after the accident and before the repairmen report issued by the licensed party.

According to the updated document, the period of notice to the insurance company that the insured is obligated to in case of any substantial change; changes that may increase the likelihood of danger, has been increased from 10 to 20 working-days. In return, the insurance company must notify the insured if it wished to add additional charges to the subscription, fees or return part of it in case of prices reduction. Unlike before, the document now covers the insured or the driver who caused an accident even if his/her license is expired; this is applicable only if it is renewed within 50 working days. Moreover, it is now possible for the insured or the insurance company to cancel an insurance document after its issuance if there is an alternative insurance covering the remaining period of the document to be canceled.

Source: Saudi Press Agency