Saudi Arabian Monetary Authority (SAMA) announces its decision to ban the Union Cooperative Insurance Company from accepting new subscribers in vehicle insurance as of Tuesday 05/05/1440H corresponding to 05/02/2019. However, it is allowed to add to the applicable documents and renew these documents issued by the company. This decision comes as a result of the company serious violations related to the settlement of vehicle insurance claims, care of customers and the ineffectiveness of their technical systems.

SAMA stated that unless the company corrects its situation and adheres to regulations and conditions that guarantee insured rights, the ban will not be lifted. Moreover, SAMA will not hesitate to take one or more actions in case of non-compliance.

This decision comes within the framework of the Saudi Arabian Monetary Authority’s keenness to protect the rights of insured and beneficiaries of insurance coverage and to prevent irregular practices in the insurance sector and in pursuant to Article 19 of the Cooperative Insurance Companies Control Law issued by Royal Decree No. 32/m dated on 1424/06/02. It is worth Noting that the decision of ban does not absolve the company from its obligations related to the insurance policies and resulting claims.