Cairo: Saudi Arabia has unveiled amendments to car insurance, expanding the service as part of efforts to regulate the insurance market in the kingdom.
The Saudi central bank (SAMA) announced the issuance of amended comprehensive car insurance rules, saying the changes aim to give potential clients larger insurance coverage and preserve the beneficiaries’ rights.
By virtue of the latest amendments, insurance coverage expands to include relatives, chauffeurs and sponsorees of the insured ones.
Moreover, the amendments enable corporate clients to specify insurance coverage and advantages that suit their own requirements.
Last month, a draft of the insurance amendments was posted on the Public Consultation Platform linked to the National Competitiveness Centre for comments from the general public and specialists.
On October 1, Saudi traffic authorities started applying an electronic monitoring of validity of insurance to all cars running on the roads across the country.
According to this system, a vehicle is monitored electronically once every 15 days in case it does not have valid insurance.
Failure to have a valid vehicle insurance in Saudi Arabia is an offence punishable by fines of SR100 to 150.
The Saudi General Traffic Directorate has urged Saudi and expatriate motorists to make sure that their cars are insured in order to preserve their rights in the event of accidents.
Saudi Arabia, a country of 32.2 million people, is home to a large community of migrant workers. Foreigners make up 41.6 per cent of the kingdom’s overall population, according to a recent census.