COVID-19: Vehicle insurance extended by 2 months in Saudi Arabia

Cairo: Saudi insurance firms have extended by two months insurance for individuals' vehicles without extra charges, Saudi newspaper Okaz has reported.

Two additional months will also be provided in insurance covering vehicles bought by individuals during the period from May 5, 2020 to June 6 of the same year similarly without extra fees, according to the report.

The renewal is processed automatically without the client having to approach the insurer due to the situation related to the coronavirus outbreak.

As part of facilities offered to insurees under the current circumstances, insurance documents will not be invalidated in case the insured person defaults on paying insurance installments in time, thus giving him/her another chance for paying.

Governor of the Saudi Arabian Monetary Authority Ahmad Alkholifey lauded the firms' step. "This initiative comes within the state's efforts to fight the coronavirus pandemic and mitigate its expected financial and economic impact on the private sector and individuals," he said.

In recent weeks, the Saudi government has unveiled several economic stimulus packages to cushion the fallout from the COVID-19 in the country.