Saudi unified motor ins. contract implemented
Monday, 08 27 2018, Category: Insurance and Reinsurance, Country: Saudi Arabia
The Saudi Arabian Monetary Authority (SAMA), the Kingdom's central bank and insurance market regulator, will apply new amendments to the unified policy for compulsory vehicle insurance starting today, Aug. 26.
The updated policy will cover drivers 18 years old and older, instead of drivers 21 years old.
Insurers are now required to deposit the indemnity amount after claim settlement with the beneficiary’s bank account.
Claim applicants are now allowed to submit repair invoices to insurance firms, provided that the accident is monitored by the authorized entity. The insurance firm will be also provided with a report on the car damage before and after repairs.
The subscription fee refund mechanism was also amended. It will be calculated on the basis of days of consumption along with the deduction of a maximum of SAR 25.00 fee.
Insurance firms are not required to pay the remaining subscription fees in case the value of the claim – planned to be canceled – exceeds the refund amount.
For cancelations, the insurer and the insured can cancel issued policies in case there is a substitute policy.