22 August 2017
RIYADH: The Saudi Arabian Monetary Authority (SAMA) has banned three insurance companies and four insurance agencies from issuing, renewing or selling compulsory vehicle insurance policies, local media reported.
The companies are Arabian Shield Cooperative Insurance Co., Saudi-Indian Co. for Cooperative Insurance, Malath Cooperative Insurance Reinsurance Co., Ajyad Al-Khaleej Insurance Co., First Insurance Co., Al-Takaful Saudi Co. Insurance Agents and Wattad Insurance Co.
SAMA said it recorded serious violations committed by these companies in procedures related to selling compulsory vehicle insurance.
These violations have led to disruptions in fair pricing and market competition, and irregular practices from unauthorized parties, it added.
SAMA previously suspended the work of the above companies for serious violations regarding claim settlements and complaints from customers.
The authority said it will not remove the ban on these companies unless they commit to regulatory standards that ensure the rights of the insured and beneficiaries of insurance coverage.
SAMA added that it would take other regulatory measures against companies that do not commit to such standards.
The ban will not relieve these companies of their commitment to valid insurance policies and claims.