The following words and phrases, wherever they occur herein, shall have the meanings assigned thereto, unless the context requires otherwise:

1.1 SAMA: the Saudi Central Bank.

1.2 Rules: the Comprehensive Motor Insurance Rules.

1.3 Company: the insurance company licensed to practice insurance business in accordance with the provisions of the Cooperative Insurance Companies Control Law.

1.4 Insured: a natural or juristic person who purchased the Policy from the Company and whose name is stated in the Policy Schedule.

1.5 Comprehensive Motor Insurance: The insurance coverage that is based on damages and losses that occur to the Insured Motor Vehicle.

1.6 Motor Vehicle: the Insured transportation means, which is designed to move by wheels or tracks or propelled using mechanical or animal power, as described in the Policy Schedule (trains are excluded).

1.7 Policy: the Comprehensive Motor Insurance Policy whose provisions and coverages are stipulated herein and in the Policy Schedule attached thereto.

1.8 Named Driver: the additional driver licensed to drive the Motor Vehicle and whose name is stated in the Policy Schedule.

1.9 Technical Total Loss: the technically damaged Motor Vehicle, which cannot be repaired to a state legally fit for driving and is sold for scrap, and is dropped from the registration systems of the General Department of Traffic.

1.10 Economic Total Loss: the damaged Motor Vehicle that can be repaired, but the repair is economically costly; based on the percentage agreed upon between the Company and the Insured and stated in the Policy Schedule.

1.11 Partial Loss: the destruction or damage of parts of the Motor Vehicle which does not exceed the set percentage of Economic Total Loss agreed on between the Company and the Insured which is stated in the Policy Schedule

1.12 Policy Schedule: the schedule complementing the Policy and its appendix, attached to this Rules.

1.13 Deductible: the amount borne by the Insured for any claim as stipulated in the Policy Schedule.

1.14 Sum Insured: the value of the Motor Vehicle, set in the Policy Schedule.

1.15 Roadside Assistance: a set of various services provided for the Insured, other than towing and storage, when the Motor Vehicle breaks down for any reason.

1.16 Material Fact: any information requested by the Company from the insurance applicant during the conclusion of the Policy that may affect the Company’s decision in accepting the insurance or rejecting it or accepting the insurance with different conditions.

1.17 Repairing Party: the approved agency (manufacturer or importer) to repair the damages covered under the Policy, or the auto repair shop approved by the Company to repair the damages covered under the Policy, which is stated in the Policy Schedule.

2.1The Rules aim to regulate the contractual relationship between the Company and the Insured by sitting the minimum coverage of the noncompulsory Comprehensive Motor Insurance.

2.2The Rules apply to any noncompulsory Comprehensive Motor Insurance. The Rules must be adhered to in conjunction with the Cooperative Insurance Companies Control Law and its Implementing Regulation, the Unified Compulsory Motor Insurance Policy, and the relevant regulations, rules and instructions.

3.1 Under the Policy, the Company shall compensate the Insured for any risk causing damage or loss to the Motor Vehicle, The coverage shall also include any damage caused by fire, theft, lightning or natural disasters such as floods and hail, along with vehicle towing and storage coverage. It also covers third-party civil liability as per the Unified Compulsory Motor Insurance Policy issued by SAMA.

3.2The maximum limit of the insurance coverage for each covered claim under the Policy should be as follows:

• 1- Limits of civil liability to third party as per the Unified Compulsory Motor Insurance Policy.

• 2- Sum Insured of the Motor Vehicle for any risk causing damage or Loss to the Motor Vehicle.

• 3- Limit of liabilities for other optional insurance coverage stated in the Policy Schedule.

3.3Optional Insurance coverage:

• 1. During the negotiation stage and before issuing the Policy, the Company must offer the insurance applicant an insurance coverages for the following:

  • A. Replacement of Motor Vehicles’ rent.

  • B. Roadside Assistance.

  • C. Death and physical injuries’ and medical expenses for the Insured or Named Driver.

  • D. Accidents occurring outside the territory of the Kingdom of Saudi Arabia.

  • E. The driver related to the Insured, such as (parents, spouse, sons, daughters, brother and sister) or the Insured’s domestic worker or someone who work for the Insured based on a labor law.

2. The Company may offer add-ons insurance coverage to the insurance applicant other than coverages stated herein.

When offering insurance products that include third party insurance and additional coverage the Company must obey the following: 

1. Not to name the insurance products or describe it in any way as Comprehensive Motor Insurance.

2. Comply with the provisions of Article five section (4,5,6) in this Rules.

3. In case the insurance coverage includes the provision of applying the deductible on the indemnity due to the use or consumption of the Motor Vehicle during the period prior to the risk, the percentage shall be agreed on with the Insured upon concluding the policy and stated in the Policy Schedule.

Coverage limits in this section are subject to the Unified Compulsory Motor Insurance Policy issued by SAMA.

The following are excluded from the coverage of the Policy:

coverage of the Policy:

1. The optional Insurance coverages that must be offered by the Company to the insurance applicant as stated in Paragraph (3.3) of this Rules if rejected by Insured.

2. A Motor Vehicle found to be driven by a person who does not hold a proper class of license corresponding to the type of vehicle driven; according to the relevant laws and regulations, or in the event that an order was issued by a competent authority for the forfeiture of the Driver’s license, or if the license was expired at the time of the accident unless it is renewed within (50) business days from the date of the accident.

3. If the Indemnity was less than or equal to the Deductible stated in the Policy Schedule.

4. An accident to the Motor Vehicle when driven by a person other than the Insured or Named Driver.

5. Manufacturing defects and damage resulting from the use of the Motor Vehicle or from mechanical or electrical malfunctions.

6. Damage, loss or theft of tires, rims, hubcaps (wheel covers) and/or exterior mirrors, unless such loss or damage occurred thereto at the time of the covered accident

7. Loss or damage to goods and/or personal belongings while being loaded, unloaded or transported in or on the Motor Vehicle.

8. Loss or damage to any trailer, unless stated otherwise in the Policy Schedule

9. Loss or damage to the Motor Vehicle as a result of theft or attempted theft due to leaving the Motor Vehicle running or leaving the keys in the Motor Vehicle, or due to not rolling up the windows or locking the doors.

10.All additional Motor Vehicle accessories, apart from those already fitted by the manufacturer and whose price is already included in the original value of the Motor Vehicle, or the type and value of such accessories are explicitly and specifically stated in the Policy

11.If the Motor Vehicle is being used in a way that violates the restrictions of the vehicle use set forth in the Policy.

12.The Motor Vehicle carrying passengers beyond its permitted seating capacity or that was overloaded and proven that the accident was caused by such violation.

13.If the Motor Vehicle is used for any type of racing, speed trial, or speed or power testing, with the exclusion of the juristic Insured.

14.If the Motor Vehicle is driven by a person under the influence of drugs, alcohol, or medicines that affect the ability to drive.

15.If the Motor Vehicle is being used as working machinery.

16.Car drifting, running a red light or driving against the direction of traffic if it is proven that such violation was the cause of the accident according to the report prepared by the competent body attending the accident scene.

17.If the Motor Vehicle is used in areas that are normally off limits to the public, such as airports or seaports.

18.Any liabilities or costs that are directly or indirectly incurred due to criminal and hostile acts committed by the Insured and/or the Named Driver.

19.If it is proven in the report prepared by the competent body attending the accident scene that the accident was caused deliberately by the Insured or the Named Driver.

20.Any liability or expenses arising, directly or indirectly, from the following:

• a. War, invasion, acts of foreign enemy, hostilities, warlike acts (whether war is declared or not), or civil war.

• b. Rebellion, military or popular uprising, insurgence, revolution, usurping authority, martial laws, siege, or any events or reasons leading to declaration or continuation of martial laws, siege, or acts of vandalism and terrorism committed by person(s) working individually, on behalf of, or in relation with any terrorist organization. Terrorism means using violence for political, intellectual, philosophical, racial, ethnic, social, or religious purposes. Such use of violence includes putting the public and/or a segment thereof under a state of terror; causing turmoil; affecting and/or intervening in any of the government’s operations, activities and/or policies; causing any disturbance that negatively affects the national economy or any of its sectors; and/or carrying out or causing strikes, riots, or civil or labor unrest.

• c. Damage directly or indirectly caused by nuclear weapons, ionizing radiation, or radioactive contamination resulting from any nuclear fuel or waste, or contamination due to nuclear fuel combustion. For the purposes of this exclusion, combustion shall include any nuclear fission.

21.Driving the Motor Vehicle in desert areas and unpaved roads unless inside the city.
The Company and the Insured may agree to waive any of the above exclusions, unless deemed to be in conflict with relevant laws.

In the event that a party other than the Insured or the Named Driver caused the damage or loss to the Motor Vehicle, and the Company compensated the Insured for this damage or loss or for death and physical injuries and medical expenses –if covered-, the Company has the right to subrogate the Insured and pursue the party causing the accident, or the Company of the party causing the accident for the indemnity incurred on the Motor Vehicle.

The Insured shall notify the Company, within (20) business days, of any change in the Material Fact. The Company shall advise the Insured if it intends to increase the premium rate. If no notification is sent to the Insured by the Company within (5) business days, this shall indicate the Company’s agreement to continue providing the coverage for the Insured at the premium rate agreed on.