The terms used in These regulations shall have the same meaning as per article one (1) of the Implementing Regulations.
The following regulations provide instructions regarding the Supervision and Inspection Costs to be paid by insurance/ reinsurance companies and brokers operating in the Kingdom, as per Article Thirty Six (36) of the Implementing Regulations of the Law of Supervision of Cooperative Insurance Companies promulgated by Royal Decree M/32 dated 2/6/1424 H.
These regulations shall apply to all insurance/ reinsurance companies that have maintained operations in the Kingdom after the end of the grace period granted by the royal decree number 3120 dated 4/3/1426H that ended on 11 March 2008. And to all insurance/ reinsurance brokers starting from the date of obtaining their license to operate in the insurance brokerage business in the Kingdom.
Article Thirty Six (36) of the Implementing Regulations of the Law of Supervision of Cooperative Insurance Companies promulgated by Royal Decree M/32 dated 2/6/1424 H stipulates that: The Company and the Insurance Brokerage shall pay the costs of inspection and supervision by paying SAMA the following:
a) The Company shall pay five per thousand (0.5%) of total underwritten premiums in a financial year excluding local market share of the reinsurance business
b) The Insurance/Reinsurance Brokerage shall pay an amount representing one percent (1%) from the total commissions and fees earned within an accounting year.
Insurance/ reinsurance companies should pay the supervision and inspection costs to SAMA on a quarterly basis:
a) The payment for the first quarter should be made at the latest by the end of the 4th month of the financial year.
b) The payment for the second quarter should be made at the latest by the end of the 7th month of the financial year.
c) The payment for the third quarter should be made at the latest by the end of the 10th month of the financial year.
d) The payment for the fourth quarter should be made at the latest by the end of the 1st month of the next financial year.
Brokers should pay the supervision and inspection costs to SAMA on a semi-annual basis:
a) The payment for the first semester should be made at the latest by the end of the 7th month of the financial year.
b) The payment for the second semester should be made at the latest by the end of the 1st month of the next financial year.
Any delay in the payment of the supervision costs will subject the company to a sanction of 0.25% of the amount due to SAMA for every late day. If the delay period exceeded six months, the delaying company’s license might be subject to withdrawal or cancelation.