Saudi Arabia – Returning part of insurance premium on cancellation
Friday, 06 03 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
The Saudi Arabian Monetary Agency compelled motor insurance companies to return part of the insurance premium in case the vehicle ownership is transferred to another person or insurance is canceled. Moreover, it clarified that the insured has the right to cancel insurance or to ask for a return of the contribution paid according to the table of small periods after settling the claims if any.
It added that in case an insurance policy is canceled before the end of the period of the insurance contract, the company has to return a proportion of the contribution paid for the unexpired period of the insurance contract according to the provisions of the contract, stressing the necessity of implementing the pricing schedule submitted to SAMA and which the client approved when he bought an insurance product.
Source: Okaz Newspaper