Mandatory vehicle insurance policy updates


The compulsory motor insurance policy aims to cover civil liability towards others, according to the terms and conditions of the insurance policy, where the insurance company undertakes to compensate others for the losses and damages resulting from an accident caused by the driver or the insured, in exchange for the contribution he pays.

The Saudi Arabian Monetary Agency has issued the updated version of the Unified Compulsory Vehicle Insurance Policy, and it has begun
Worked with it since mid of Dhu al-Hijjah 1439 AH, corresponding to 26 August 2018 AD.

The most important changes to the unified compulsory vehicle insurance policy

Age of the driver: Cover of the insured driver who is 18 years of age in Hijri and above and who holds a driver’s license, provided that the driver’s name is recorded in the document.

The insured must notify the insurance company of any fundamental change in the information he provided in the insurance application form within twenty working days.

When a risk covered under the document occurs, the competent authorities are notified immediately after the accident, and the driver of the insured person does not leave the accident site until the procedures are completed, and exceptions are made that require leaving the accident site, such as physical injuries.

The insurance company shall notify the insured of the date of the expiry of the policy, before its expiry, with a period of no less than 20 working days to enable the customer to renew it or obtain an insurance policy from another company.

The updates also included an explanation of the procedures for settling insurance claims and the mechanism for calculating the portion due from the subscription amount if the document was canceled, in addition to updating the cases of recalls and exceptions.

Insurance coverage and coverage limits

The insurance company is obligated to compensate others for the physical or material damage to it or its property and the expenses resulting from the traffic accident caused by the insured vehicle inside the Kingdom, 10,000,000 Saudi riyals, as a maximum, for the company’s responsibility during the policy’s validity period, except for the damage excluded from the coverage according to conditions and the provisions of the document.

Claims settlement

The Saudi Arabian Monetary Agency obligated the insurance companies to provide the claimant with evidence that they were received and informed of the missing documents within three working days of “individuals” and nine working days of “companies” from the date they received the claim.

The insurance company may appoint an inspection expert or a loss estimator if necessary, within a maximum period of 3 working days for individuals and 9 working days for companies from the date of receiving the claim.

The insurance company is obligated to settle and pay the insurance claim within a maximum period of 15 Hijri days for individuals and 45 Hijri days for companies from the date of receiving the claim and to deposit the compensation amount directly in the customer’s bank account through the International Bank Account Number (IBAN).
[ What are the documents for submitting a car insurance claim? ]

Mechanism for calculating the part due to the subscription amount

In the event of cancellation for any of the following reasons:

1-Drop the vehicle log

2-Transfer of vehicle ownership to another owner

3-There is an alternative insurance policy that covers the remainder of the policy to be canceled

The due portion of the subscription amount upon canceling the policy is calculated as follows: The remaining subscription = 365 – the days consumed / 365 x the subscription after deducting the administrative fees with a maximum of 25 riyals.

The company shall deposit the amount recovered from the subscription to the insured’s bank account through the international bank account number within 3 working days from the date of cancellation.

The company is not obligated to pay the remaining amount of the subscription in the event of claims on the document that the insured requested to cancel and the value of the claim exceeds the value of the amount supposed to be returned.

Cases of referring to the driver or the insured

Are the dangers that result in harm to others, and the insurance company is obligated to compensate the injured party and then collects what he paid from the insured.

One of the most important of these cases is if the accident was proven intentionally, or the driver escaped from the accident site without an acceptable excuse, or that the accident was caused by using the insured vehicle in a manner contrary to what is stated in the document (such as the number of passengers in the vehicle exceeding the authorized capacity, walking in the opposite direction of traffic,..) or something else.


Among the most prominent of these cases is drifting, in the event that the vehicle is used in any type of racing or in determining the speed of departure or in the ability test experience if it is used within the areas where the public is not permitted to drive, such as airports or seaports, unless the vehicle is used for commercial purposes in Allowed range.

These updates reinforce the relationship between the insured and the insurance company and safeguard the rights of each party by further clarifying the rights and responsibilities within the terms and conditions of the insurance policy.

The policy also included the right of the insured to file a complaint through the ” Sama Interested ” website in the event that the insurance company did not adhere to settling the claims within the period specified in the policy without any justification for that.


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