Okaz/Saudi Gazette

RIYADH — The Saudi Central Bank (SAMA) has instructed insurance companies to settle claims by individuals for third-party vehicles within five working days if the value of the claim does not exceed SR2000.

“The claim shall be settled within a period not exceeding five working days from the date of receiving the claim,” SAMA said in a statement on its website.

The Central Bank updated the model form for insurance claims for third-party vehicles, indicating that submission of application in the updated form would come into force from the middle of August. SAMA has allowed insurance companies to convert the model to digital version to keep pace with the transformation of technical services.

SAMA has unified the documents that are required to submit along with mandatory vehicle insurance claims. It also unified the procedures that insurance companies should adhere to in order to settle compulsory vehicle insurance claims.

The Central Bank has obligated the insurance company, upon receiving any claim, to provide the applicant with a receipt stating that the claim has been received and shall inform the applicant about any deficiencies in the claim within seven days of receiving it.

All compulsory vehicle insurance claims (third party) will be paid to individuals, with the remaining portion of the insurance premium to be refunded in the event of the cancellation of the vehicle insurance policy by depositing the compensation amount in the beneficiary’s bank account directly via IBAN.

It is mandatory for the insurance company to settle the amounts of claims determined by the General Traffic Department (Muroor) or Najm for Insurance Services or the licensed parties that are covered under the document without compromising on honesty and fairness.