The Saudi Arabian Monetary Authority (SAMA) announces that it has decided to prohibit (Arabian Shield Cooperative Insurance Company), (Saudi Indian Company for Cooperative Insurance - WAFA) and (Malath Cooperative Insurance Company) from issuing or renewing any compulsory vehicle insurance documents, as of Sunday 28 / 11/1438 AH corresponding to 08/20/2017 AD.

SAMA also decided to prevent (Ajyad Al Khaleej Insurance Agency), (First Insurance Services Company), (Saudi Takaful Company as insurance agents) and (Watan National Insurance Agency) from selling any insurance policy as of Sunday 28/11/1438 AH corresponding to 20/08/2017.

SAMA points out that the ban comes after it noticed serious violations of those companies in the procedures for selling compulsory vehicle insurance policies that led to a breach of fair pricing and market competition and to illegal practices by unauthorized parties. Beside, SAMA had previously suspended the above-mentioned insurance companies for violations. SAMA confirms that the ban will not be until it is proven that the company has corrected its conditions, and that it adheres to the statutory standards and requirements that guarantee the rights of the insured and the beneficiaries of the insurance coverage, and that the organization will take one or more measures. Other legal actions towards the non-compliant company.

This decision comes within the framework of SAMA'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, and in implementation of Articles (18) and (19) of the Cooperative Insurance Companies Control Law issued by Royal Decree No. (M / 32) and dated 06/02/1424 AH. Noting that the ban does not absolve these companies of their obligations related to the valid insurance documents and the claims that arise from them.

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, and in implementation of Articles (18) and (19) of the Cooperative Insurance Companies Control Law issued by Royal Decree No. (M / 32) and dated 06/02/1424 AH, noting that the ban does not absolve these companies of their obligations related to the valid insurance documents and the claims that arise from them.

SAMA calls on all the insured and beneficiaries of the insurance to adhere to their rights at all times and to review the company in this regard. In the event that the company does not respond to the beneficiary, SAMA urges filing a complaint with the Clients Protection Department through the institution's website or by calling the toll-free number 8001256666.