The Saudi Arabian Monetary Authority (SAMA) announces that it has decided to prohibit the United Cooperative Insurance Company from issuing or renewing any compulsory vehicle insurance documents, as of Friday, 12/24/1438 AH corresponding to 09/15/2017 AD, according to Article (19) of The Cooperative Insurance Companies Control Law issued by Royal Decree No. (M / 32) dated 06/02/1424 AH. This is due to system breaches by the company in the procedures for selling compulsory vehicle insurance policies that led to illegal practices by unauthorized parties.

                SAMA indicates that it had previously toped the United Cooperative Insurance Company twice for serious violations of claims settlement procedures and customer complaints handling.

                SAMA affirms that the ban decision does not absolve the company from its obligations related to the valid insurance documents and the claims that arise from it.  The prohibition against the company will not be lifted until the company's correctness of its conditions is proven and its commitment to the regulatory standards and requirements that guarantee the rights of the insured and the beneficiaries of the insurance coverage. SAMA has issued a final warning to the company that it will take one or more legal measures against the company if the company does not take the necessary corrective measures to ensure the efficient and sustainable treatment of violations.

This decision comes within the framework of the Saudi Arabian Monetary Authority's keenness to protect the rights of the insured and the beneficiaries of the insurance coverage and to prevent irregular practices in the insurance sector.  SAMA calls on all the insured and beneficiaries of insurance to adhere to their rights always and review the company in that, and in the event that the company does not respond, SAMA urges filing a complaint with the Clients Protection Department through the institution's website or by calling the toll-free number 8001256666.