Covering Third Party Civil Liability

The determination of coverage in this section is subject to the Unified Compulsory Motor Insurance Policy issued by Saudi Central Bank.

               General conditions

1. Subrogation:

Following indemnification of an insurance beneficiary, the Insurer has the right to act on behalf of the Insured in pursuing their Claim against the person at fault, unless it is the First Beneficiary.

2. Right of Recovery:

In the case that an Insurer made indemnity payments to any party whomsoever for damage or loss, and it was later discovered that the payments were made upon a risk excluded from or not covered under the Policy; or if the Claim involved deceit, fraud, misinformation or forgery, the Insurer is entitled to recover against the indemnified person for the indemnity payments. The Insurer is also entitled to recourse against any person at fault in case of attempted theft or theft of the insured Motor Vehicle or when the insured Motor Vehicle is driven by any person without permission from the Insureds.

3. Changes:

The Insureds shall notify the Insurer, within 20 business days of any Material Changes to the information submitted in the insurance coverage request. The Insurer shall notify the Insureds in case it intends to increase the amount of the Premium, or reimburse part of the Premium to the lessor when it is reduced. If no notification is sent to the Insured by the Insurer within five business days, then this shall indicate the Insurer’s agreement to continue providing the coverage at the Premium rate agreed upon at the time of signing the Policy.

5. Obligations of the Insureds or Driver in Case the Occurrence of an Accident Covered under the Policy:

a) Shall inform the concerned entities as soon as an Accident occurs and shall not leave the scene of the Accident until procedures have been completed, except in cases where leaving the scene is required such as the case of physical injuries.

b) Shall not Claim responsibility with the intention of harming the Insurer, pay or undertake to pay any amount to any party involved in the Accident except after obtaining a prior written approval from the Insurer.

c) Shall cooperate with the Insurer, and issue powers of attorney enabling the Insurer to carry out the pleading, defending and settlement procedures on behalf of the Insured or the Driver, if the Insurer expresses its desire to do so.

d) Shall, at the Insurer's expense, perform all actions required to guarantee the Insurer's right for recovering any of its due entitlements from any other party, as a result of indemnity paid in accordance with the Policy.

e) Shall inform the concerned entities in case of theft or any other criminal act and shall cooperate with the Insurer in securing the conviction of the offender.

6. Fraud:

All rights arising from the Policy shall be forfeited if the Claim involves fraud, or if the Insureds or the Driver adopts fraudulent ways or methods to gain benefit under this Policy, or if the liability or damage resulted from a deliberate act by or collusion with, the Insureds, the Driver, or others. The Insurer has the right of recover against any party found to be responsible for such fraud, whether as a conspirator or an accomplice.

7. Cancellation:

Neither the Insurer nor the Insureds has the right to cancel the Policy after its issuance, except in the following cases:

a. The write-off of the Motor Vehicle’s registrar.

b. Transfer of ownership of a Motor Vehicle to another owner.

c. The existence of alternative Policy that provides the same coverage indicated in the Rules and covers the remaining term of the Policy to be cancelled.

d. Termination or cancelation of the finance leasing contract between the Lessor and the Lessee.

The Insurer shall refund the Lessor the due amount payable for the uncovered period by depositing the amount to their bank account via IBAN, and it will be added to Lessee Insurance Account, within three business days from the date on which the Insurer becomes aware of the occurrence of any of the cases mentioned above. The due amount payable to the Insureds for the uncovered period is calculated by subtracting the elapsed days from the total Policy term (in days) and then dividing the result by the total Policy term. The result is then multiplied by the insurance Premium less administrative fees (a maximum of SAR 25), and as follows:

(365 - elapsed days) /365 × insurance Premium less administrative fees (a maximum of SAR 25) = return Premium payable to the Insured.

The Insurer is exempted from paying the return Premium in the case that there is a Claim—related to the Policy to be cancelled and on the Motor Vehicle covered by the Policy—whose value exceeds the amount to be refunded as per the calculation formula mentioned above.

Notwithstanding the foregoing, Insurers, Insureds and Drivers shall remain bound by the provisions of this Policy with respect to the obligations arising prior to its cancellation.

8. Policy Issuance and Renewal Notification:

The Insurer may not issue this Policy unless it is automatically linked to the system of the authorized entity in the collection, maintenance, and sharing of insurance information. The Insurer shall notify the Insureds of the expiry date of the Policy- (45) days as maximum- in advance, in order to enable them to renew the Policy or replace it with another Policy from another insurance company.