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samaSaudi Central BankNewsSAMA Obliges Insurance Companies Not to Refuse to Provide Compulsory Motor Insurance or Travel Insurance Because of the Applicant’s Age
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SAMA Obliges Insurance Companies Not to Refuse to Provide Compulsory Motor Insurance or Travel Insurance Because of the Applicant’s Age
2/26/2017 12:00 AM

SAMA instructed all insurance companies, licensed to offer compulsory motor insurance to provide offers for insurance coverage that are fair and based on sound underwriting rules and valid technical principles to all applicants for cover, provided that the driver holds a valid driving license issued by the General Department of Traffic. Should an insurance company decide to not provide an offer for insurance coverage, it must provide to the applicant in writing a clear explanation for the specific reasons and justifications behind its decision, such justifications and reasons must not be based on the driver's age.

Similarly, SAMA instructed all insurance companies licensed to offer travel insurance to provide offers for insurance coverage that are fair and based on sound underwriting rules and valid technical principles to all applicants for cover. Should an insurance company decide to not provide an offer for insurance coverage, it must provide to the applicant in writing a clear explanation for the specific reasons and justifications behind its decision, such justifications and reasons must not be based on the applicant being an elderly. 

SAMA emphasized that it will take all actions needed to ensure that all applicants for insurance coverage have access to the required coverage on fair terms, in accordance with Article 56 of the Implementing Regulations of the Cooperative Insurance Companies Control Law stipulating that "The Company shall provide credible reasons for denying, canceling, and not renewing insurance policies, and the decisions of other companies may not be used as the sole justification for any such action,  and that Companies must deal with their customers fairly  and without discrimination."

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