The Saudi Arabian Monetary Authority (SAMA) announced that due to the failure of a number of insurance companies to fully comply with the statutory requirements related to the settlement of vehicle insurance claims and the handling of clients' complaints. In accordance with the provisions of Article (19) of the Cooperative Insurance Companies Control Law issued by the decree Royal No. (M / 32) dated 6/2/1424 AH, the Corporation decided to prohibit Malath Cooperative Insurance and Reinsurance Company, the Mediterranean and Gulf Insurance and Reinsurance Company (MedGulf) and the United Cooperative Insurance Group (ACIG) from issuing any new vehicle insurance policy. As of 2/29/1438 AH corresponding to 11/29/2016 AD.

                SAMA clarified that the suspension will not be lifted until it is established that companies correct their conditions and adhere to the standards and requirements that guarantee the rights of clients and beneficiaries of insurance coverage. Note that the suspension decision does not absolve these companies of their obligations related to valid insurance documents and the claims that arise from them. In the event that these companies fail to correct their situation, SAMA will take additional legal measures. This decision comes within the framework of the Saudi Arabian Monetary Agency's keenness to protect the rights of the insured and beneficiaries of insurance coverage and prevent any illegal practices in the insurance sector.