Saudi Arabia Insurance Information

CIA link to demographic/economic data on Saudi Arabia

General Saudi Arabia Insurance Information

• Compulsory Insurance:
  Motor Insurance
• Non-Admitted Insurance:
  Not prohibited.
• Policy Wordings & Rates / Tariffs Controlled:
  None.
• Policy Language:
  English.
• Types of Insurance Restricted to Government Institutions:
  Workers’ Compensation (Social Insurance Scheme).
• Policy Currency:
  Saudi riyal (SAR). U.S.$ insurance is available.
• Currency Restrictions / Exchange Controls:
  None.
• Policy Period:
  Annual.
• Cancellation Provisions:
  7 day written notice.
• Premium Tax, etc. paid by Insured:
  Non-admitted insurance is not tax deductible. An income tax is levied on all such premiums - ranging from 3.75 - 12%.
• Insurance Companies:
  Only one Insurer is licensed in the Kingdom - the National Company for Cooperative Insurance (NCCI) and is majority owned by the Government.
• Brokers:
  
• Brokerage Commissions:
  
• Broker of Record Letters:
  Usual for large risks.
• Reinsurance:
  No restrictions known.
• Local Natural Hazards:
  None known.
• Other Information:
  Islamic and Saudi Arabian law does not recognize insurance so no insurance laws exist other than work related benefits for injured employees.

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning and extended perils.
• All Risk:
  Available for Contractors related exposures (e.g., Builders Risk, Contractors Equipment, etc.).
• Coinsurance:
  100%.
• Blanket Insurance:
  Available.
• Business Interruption:
  UK Loss of Profits and U.S. Gross Earnings forms can be used.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: Available - rate credit negotiable.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Machinery Breakdown, Boiler Explosion, Business Interruption coverages can be written.

General / Public Liability

• Available Wordings:
  Comprehensive wordings available.
• Comments:
  Coverage can be written on an occurrence basis.

Automobile / Motor

• Compulsory Limits:
  None.
• Comments:
  Coverage applies to the Insured and any licensed individual driving with the Insured’s permission. Passengers are considered Third Parties except for members of the Insured’s family.

Workers’ Compensation

This program is run by the General Organisation of Social Insurance (G.O.S.I.). The plan is funded by a mandatory 2% of wages paid.

• Comments:
  This program is run by the General Organisation of Social Insurance (G.O.S.I.). The plan is funded by a mandatory 2% of wages paid. All employees in The Kingdom are protected. Extra-Territorial benefits are not included. Medical Expenses and Occupational Disease are included under the Program.

Marine

• Available Wordings:
  Follow the London Institute of Underwriters terms and conditions. War Risks rates follow the London scale.

Crime

• Available Coverages:
  Fidelity, Theft & Burglary, Scheduled and Blanket forms. Surety Bonds are usually issued by Banks in the Kingdom.