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.
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.
To Look at the Standard Compulsory Vehicle Insurance Policy: