RIYADH — The Saudi Central Bank (SAMA) has instructed that it is mandatory for all insurance companies to settle insurance claims for third-party vehicles for individuals if the value does not exceed SR2000. The claim shall be settled within a period not exceeding five working days from the date of receiving the claim, SAMA said in a statement on its website.
The Central Bank updated the model form for compulsory insurance claims for third party vehicles, indicating that submission of application in the updated model would come into force from the middle of August. SAMA has allowed insurance companies to convert the model to digital version to keep pace with the transformation of technical services.
SAMA has unified the documents that are required to submit along with mandatory vehicle insurance claims. It also unified the procedures that insurance companies are adhered to in order to settle compulsory vehicle insurance claims. The Central Bank has obligated the insurance company, upon receiving any claim, to provide the applicant with a receipt stating that the claim has been received and shall inform the applicant, if there are any deficiencies in the claim, about it within seven days of receiving it.
All compulsory vehicle insurance claims (third parties) will be paid to individuals, with the remaining portion of the insurance premium to be refunded in the event of the cancellation of the vehicle insurance policy by depositing the compensation amount in the beneficiary’s bank account directly via IBAN.
It is mandatory on the part of the insurance company to settle the amounts of claims determined by the General Traffic Department (Muroor) or Najm for Insurance Services or the licensed parties that are covered under the document without compromising on honesty and fairness.
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