KSA - SAMA releases an update on the compulsory vehicle ins.
Wednesday, 09 11 2019, Category: Insurance and Reinsurance, Country: Saudi Arabia
The Saudi Arabian Monetary Authority (SAMA) announced the updating of some of the articles within the current unified vehicle compulsory insurance policy. This comes in line with its constant efforts to improve the insurance sector and to protect the rights of insureds and beneficiaries of the insurance coverage from any practices that may harm them.
SAMA clarified that these amendments to the document included the amendment of Articles (8) related to the right of the insurance company to return to the insured to claim compensations for what was paid to others in one of the applicable cases referred to in the document, where a maximum period of one year has been set. With the recourse right, the insurance company has the right to recourse to the insured to claim its right compensation; this was included in the document to avert cases of third party’s damage in a traffic accident caused by the insured vehicle when the insured or the driver of the insured vehicle committed traffic violations or breached the insurance policy.
The amendments included as well the amendment of Article (7) which is related to the inclusion of the insured’s name in the company system licensed to collect credit information about consumers (Simah). So it was confined to the right of the insurance company to include the name of the insured in the case of defaulting payment of the insurance subscription only without defaulting in the payments of claims due to the right of recourse.