Saudi campaign against illegal insurance deals and fraud

Cairo: Insurance firms operating in Saudi Arabia have launched a campaign aimed to raise public awareness against unlicenced insurance amid tough penalties vowed against fraudsters.

Sponsored by the Saudi Central Bank, the “Be Aware” campaign warns people against car insurance policies touted by unlicensed offices that claim to offer auxiliary insurance services.

The campaign features awareness messages targeting expatriates and Saudis to avoid falling victim to illegal insurance deals and fraud.

They are urged to buy insurance documents through licensed channels such as insurance firms, their agents, accredited brokers and approved websites.

The campaign comes after several cases of insurance fraud were exposed resulting from dealing with unlicenced insurance practitioners including car showrooms and anonymous online brokers.

“Anyone practicing insurance works and insurance support services without a license from the Saudi Central Bank is liable to a fine of up to SR2 million and four-year imprisonment, or one of the two penalties,” spokesman for the insurance sector in the kingdom Adel Al Eisa said.

He added that a list of the licenced insurers is available on the Saudi Central Bank’s website.

“This campaign comes to boost awareness of citizens and expatriates about important topics related to car insurance services and provision of insurance coverage for them,” he added.

The drive, Al Eisa said, guides beneficiaries to directly deal with the licenced insurance channels and highlights advantages of this approach including access to the real prices of the services and securing rights in the case of a traffic accident.