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 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 Driver: The insured and 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.

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

• 1.10 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.

• 1.11 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.

• 1.12 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.

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

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

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

• 1.16 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.

• 1.17 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.

• 1.18 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.

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

2.2 The 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.

3.2 The 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.

3.3 Optional 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 Driver or Named Driver.

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

• 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.