Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. In Saudi Arabia, it is a legal requirement for all vehicles to have an insurance policy.
The Insurance Companies have Certain Terms and Conditions
The United Insurance document states that in 12 cases, the insurance company may refuse to compensate the driver or the person responsible for the traffic accident or the person being insured in Saudi Arabia. Read more: 8 Cases Where Overtaking is Prohibited in Saudi Arabia
Cases where Insurance Companies can Refuse to Pay
The insurance company can refuse to pay compensation in the below mentioned 12 cases.
- On finding evidence of incorrect information.
- On hiding important information in the insurance form.
- Deliberately causing a traffic accident.
- Driving in the opposite direction.
- Failure to notify the insurance company within 20 days of the fundamental change in the position specified in the insurance form.
- Under the influence of drugs.
- If proof of driving is found for a person under the age of 18, provided the person under the age of 18 has not purchased the insurance policy himself.
- When the driver’s license expires at the time of the accident.
- In the presence of more than the prescribed number of passengers in the vehicle at the time of the accident, provided it is proved that the accident was due to the excessive number of passengers.
- If evidence of vehicle theft or snatching is found, provided no theft or snatching has been reported.
- One of the restrictions in the insurance document is that the policyholder must be notified of the decision by the insurance company within 20 days of receipt of the application.
- The insurance company is also given the option to refuse compensation within a maximum of one year from the date of settlement with the policyholder. Read more: Procedure to Follow in Case Car Number Plate Lost Outside KSA
What if your Vehicle’s License Plate do not Match?
The insurance company may refuse to compensate the policy of the buyer, if it proves that the license plate number of the vehicle is not specific to the vehicle that the policyholder was driving at the time of the accident. Read more: Saudi Traffic Department Clarifies to Show Original Saudi Driving License Instead Digital One
It is beneficial for you to completely read and discuss the terms and conditions with the insurance company to avoid any type of misunderstandings. If you are interested to know more about the new systems in Saudi Arabia then do visit our website and read more articles. Read more: The New Procedure for Converting a Driving Permit into a Saudi Driving License