Saudi Insurance Authority proposes expanded coverage for vehicle lessees, drivers in draft law amendments: Report
The Saudi Arabia’s Insurance Authority has proposed amendments in the provision of comprehensive insurance coverage for lessees in the insurance law by expanding the list of entities covered under it, according to a report…
The Saudi Arabia’s Insurance Authority has proposed amendments in the provision of comprehensive insurance coverage for lessees in the insurance law by expanding the list of entities covered under it, according to a report by Saudi Gazette.
The proposal envisages granting additional coverage to the driver of the vehicle, including relatives of the lessee, the driver sponsored by the lessee, and the driver working for the lessee under an employment contract.
The authority said the move on the draft amendment to the regulations governing comprehensive insurance for vehicles owned by individuals on lease financing is to protect the rights of the insured and other beneficiaries.
The proposed draft aims to protect the rights of the insured and further improve the vehicle insurance sector.
It stipulates amending Paragraph 11 of Article 2 of the Insurance Law, which previously covered only the driver – the person authorised to drive the vehicle and whose name is recorded in the policy schedule.
The proposed amendment reads: “Driver: The lessee and the driver related to the lessee, including his/her father, mother, husband, wife, son, daughter, brother, sister, or the driver under the sponsorship of the lessee or working for the lessee under an employment contract.”
The draft also amended Paragraph 2 of Article 5 of the Insurance Law, which reads: “The lessor must obtain insurance quotes from at least three companies and select the best and lowest-priced quote from them and present it to the lessee.”
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