In accordance with SAMA's responsibility to protect the insured and beneficiaries of insurance coverage, achieve stability in the insurance sector in the Kingdom, facilitate procedures for settlement of motor insurance claims and ensure expedited reimbursement of due amounts to insurance beneficiaries, SAMA has issued a number of instructions that govern the procedures for settlement of compulsory insurance claims by insurance companies. These instructions are as follows:

• Instructions under which insurance companies are required to settle claims for third party individuals with value not exceeding SAR 2,000 within five working days from the date of receipt of claims that are complete with all required documents.
• Instructions under which insurance companies are required to adopt the Standard Form of Compulsory Motor Insurance Claims of Third Party Individuals. This Form brings into line documentation requirements and the procedures to be followed by insurance companies in the settlement of compulsory motor insurance claims (third party) of individuals, including the requirement to inform the applicant of any incomplete documents at the time of submission of the claim, as well as the insurer's obligation to carry out vehicle inspection within three days from the date of submission of the claim.

The Standard Form of Compulsory Motor Insurance Claims of Third Party Individuals can be viewed (here).

SAMA had previously issued a circular on 08/02/1438H requiring insurance companies to make payments of all compulsory motor insurance claims of third party individuals and refund the remaining amount of the insurance premium upon policy termination through transferring the amounts to the beneficiaries' bank accounts directly via IBAN.

SAMA would also like to reiterate the right of customers and beneficiaries to file complaints at relevant companies. In case the companies were not responsive or the customers or beneficiaries were not satisfied with the decisions taken on the complaints, SAMA encourages them to contact it via the webpage of the Consumer Protection Department (here).