auto car rental
Illustrative image. Image Credit: Shutterstock

Dubai: Renting out a vehicle without approved insurance coverage in Saudi Arabia may soon become illegal and incur a fine of SR3,000, local media reported.

The Saudi Public Transport Authority (PTA) has proposed draft amendments to the regulations governing the car rental business in the Kingdom. According to the proposed amendments, any facility licenced to engage in car rental business shall be punished with a fine of SR3,000 in the event of renting out any vehicle with no approved insurance coverage.

Therefore, all rental vehicles shall be subjected to insurance coverage, which must cover, as a minimum, civil liability towards third parties for all users of car rental services who have a valid driver’s licence.

“The liability arising from this type of coverage — in any case — is not transferred to the tenant, and the rental establishment shall bear the full responsibility for renting out a vehicle without any insurance coverage.”