Article 11: Managing Cases of Total Disability or Death
No: 106889333
Date(g): 6/3/2025 | Date(h): 6/9/1446
Status: In-Force
Translated Document
1-
Creditors must exempt the consumer and their guarantor from the amounts claimed under the finance contract or joint finance contract - according to their obligations in the finance contract in the event of death or total disability - without making the exemption contingent on the approval of insurance service providers or any external party. Creditors must complete the procedures within a maximum period of thirty days from the date of receipt of the death certificate or total disability report, refund any amounts deducted in excess from the date of death or total disability, and transfer ownership of the financed asset to the consumer - according to the ownership percentage in joint contracts - or their heirs, or release the mortgage - as appropriate - unless the parties agree to include any of the following exceptions:
1-1
Finance contracts concluded before 01/10/2018G.
1-2
Cases of death or total disability resulting from:
a-
The consumer deliberately injuring themselves or attempting suicide.
b-
Natural disasters.
c-
Judicial rulings issued by Saudi courts.
d-
Consumption of alcohol, narcotics, or illegal drugs.
e-
Participation or training in dangerous sports or competitions, such as: (horse or car racing).
f-
Damage caused or contributed to by nuclear weapons, ionizing radiations, radioactive contamination from any nuclear fuel or waste, contamination due to nuclear fuel combustion, war, invasion, acts of foreign enemy, hostilities, warlike acts, or acts of vandalism and terrorism committed by person(s) working individually, on behalf of, or in relation with any terrorist organization.
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Creditors are prohibited from delaying the procedures for exempting consumers, and they must immediately request the necessary documents, represented by the death certificate or the medical report issued by a competent authority proving total disability, and exert due diligence to process and complete the exemption process within the time frame specified in the regulations.
