The Saudi Central Bank (SAMA) announced the adoption of the rules of Comprehensive Vehicle Insurance, which aim to regulate the contractual relationship between the insurance company and the insured, by standardized the minimum coverage of non-compulsory Comprehensive Vehicle Insurance, and clarified the provisions of compulsory and optional coverages provided by insurance policies.
Under Comprehensive Vehicle Insurance regulations, the Saudi Central Bank clarifies that insurance companies are required to offer optional coverages to insurance applicants during the negotiation stage and before issuing the policy, including coverage for alternative rental vehicles, roadside assistance, death, physical injury, and medical expenses.
These additional coverages include coverage for accidents occurring outside the borders of Saudi Arabia, as well as coverage for the driver who is related to the insured.
- The rules also stipulated a number of provisions and exceptions, among them: calculating the insurance value by agreement between the insurer and the insured, applying the deductible amount, determining the repair costs systemically in cases of partial loss by the competent authorities, and determining the technical total loss legally based on the report of the competent authority.
In addition, it should allow for an agreement between the insured and the company to determine the percentage of the vehicle considered totally destroyed economically, and to compensate it with a financial amount based on the insurance value.
Furthermore, these rules prohibit naming or describing insurance products that do not include Comprehensive Vehicle Insurance provisions as Comprehensive Motor Insurance.
- The Saudi Central Bank had previously presented the draft "rules of comprehensive vehicle insurance" to the public and specialists for a period of 30 days in order to explore their views and observations about it. The observations and visuals were reviewed and appropriate ones were taken before the final version of these rules was adopted.
SOURCE : SAUDI EXPATRIATES
