KSA - New rules for insurance of auto lease finance
Monday, 11 02 2020, Category: Insurance and Reinsurance, Country: Saudi Arabia
The rules for comprehensive insurance of auto lease finance for individuals come into force from today, Nov. 1, 2020.
These rules, issued by the Saudi Arabian Monetary Authority (SAMA) on July 23, include protecting rights of insurance policies’ owners and the fairness of the services provided to them, in addition to determining obligations and rights of the insured in accordance with the contract of motor vehicles financially leased to individuals.
SAMA also determined the annual insurance premium, based on the change in the vehicle’s insurance value, pricing factors for individuals, and pricing the insurance policy that is affected by the individual’s driving behavior.
In addition, the central bank stated that both the lessor and the lessee shall agree on the repair method and the percentage of diminishing insurance value of the vehicle annually. Only the lessee shall have the right to request additional benefits to the policy and determine the deductible amount.