Saudi Arabian Monetary Authority (SAMA) announced a preliminary draft the Individuals Leased Vehicle Comprehensive Insurance for its continuous effort to develop the financial sector and solve the problems faced by customers under its supervision.
SAMA explained that the step to prepare and publish this draft came due to some problems related to insurance with commercial banks and financing companies' customers, which are licensed to practice financial leasing activities for vehicles. SAMA calls upon public, interested and specialists to send their views and observation on the project before 18/04/1440H CORRESPONDING TO 26/12/2018, in order to promote the principle of transparency and participation.
SAMA pointed out that, it aims through these controls to give the lessee a status in the insurance policy by adding him as an insurer next to the financing party and adding the lessee as a beneficiary in case of partial damage to give him/her the right to claim the insurance company or file a lawsuit before the judicial authorities if needed, and the insurance policy shall be treated just like individual insurance policies at the time of pricing and the granting of discounts and settlement of claims, so that the pricing is based on the lessee (the actual user of the vehicle), giving the lessee the right –if he has a traffic accident free record- to obtain up to 60% discount. SAMA aims by these controls to determine the total loss of the vehicle through the authorized parties by estimating the damage of the vehicle, to be a neutral party in estimating the damage of the vehicle and to give the lessee the priority to buy the debris in case of economically total loss of the vehicle and still usable. Moreover, this is to be able to determine the location and the method of repairing (the dealer or an approved workshops) and to determine the amount of tolerance by the lessee to be informed in advance of the amount of endurance that shall be paid when making a claim and to make the ideal format of the comprehensive insurance policy on leased vehicle, which are included in chapter two of the regulations, the minimum and the basis for insurance coverage on leased vehicles. Only the lessee has the right to add additional benefits to the document if he/she wishes.
SAMA invites the public and interested parties to submit their reviews and observation on the comprehensive insurance on individual financed leased vehicle on e-mail: IC.Pol@SAMA.GOV.SA noting that all reviews and comments will be considered for the finalization of the draft which can be found on: http://www.sama.gov.sa/en-sa/Laws/Pages/InsurancePublicConsultation.aspx