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Article Four Requirements for Practicing Banc assurance Activities

Effective from Jan 31 2025 - Jan 30 2025
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  1. Banc assurance Activities shall be practiced directly through the Bank. By merely establishing a tool among other tools for marketing and distribution for the Company, the contractual relationship between the Company and the Bank- in the context of conducting Banc assurance Activities - shall not include insurance agency, insurance brokerage, insurance advisory, or any insurance related profession.
  2. The Company and the Bank shall sign the Agreement before the Bank starts practicing Banc assurance Activities.
  3. The Company and the Bank shall obtain SAMA’s prior approval before signing the Agreement.

  4. The Agreement must include, at a minimum, the following:

    a. Term of Agreement;

    b. Agreement termination procedures; 

    c. List of the electronic and non electronic marketing and distribution channels; through which the Banc assurance Activities will be practiced.

    d. Training plan for Authorised Employees; 

    e. Know Your Client (KYC) procedures;

    f. Compliance procedures;

    g. Insurance classes and products to be covered under the Banc assurance activities;

    h. Marketing and distribution procedures;

    i. Collection of premiums procedures;

    j. Bank commission and its calculation mechanism, due date, and collection procedures;

    k. Client care and complaints resolution procedures; and

    l. Procedures of receiving and transferring the claims to the Company.