Saudi Arabian Insurance Q & A

My father expired last year. We are having two cars, both were in the name of my father but were transferred in the name of my mother last year. Recently I came to know that Insurance is compulsory for cars. I would like to know under whose name we should insure these cars as my mother will never drive the car.


Vehicle insurance has become compulsory during last few months, earlier the main thrust was on the insurance of the driver of the vehicle against liabilities. The compulsory element is for Third Party portion of the risk and not for the own damage. Very recently Insurance of vehicle has become mandatory and is being insisted upon at the time of renewal or fresh issuance of Istimara. Regarding insurance of the vehicle from the insurance point of view it can be insured by any person who is having interest in the risk to be insured. However I would suggest you to insure the vehicle in your mother's name as she is the owner of both the vehicles. Also make doubly sure that the insurance is on any driver basis and not on the named owner driver basis, otherwise the insurance will be useless. There are other minor limitations in case of any driver basis as to age and the holding of driving licence.


I am a graduate, with 6 years of experience in an Office Equipment Company on Sales side. I have been recruited by a General Insurance Company. I do not have any previous experience in the Insurance field. I have been given a choice of working either in Marketing Department or in Underwriting Department, I would like to know which department is better for me?


Insurance Industry offers a wide variety of job options. There are accountants, underwriters, engineers, doctors, veterinarians, auditors, risk experts, claims handlers, surveyors, actuaries, trainers, sales and marketing personnel etc. For a new entrant and a learner any department is suitable as this will be the entry level job and there will be a great deal to learn in any of the departments. You have no exposure in the Insurance Industry but you have experience of dealing with the customers in your previous job. Considering your background I would suggest you to choose Marketing Department. In this you will be a contact point for the customers, this will give you more drilling and will not be a big cultural shock for you. This job will also give you an edge over securing the customer and in the process you will be able to learn about the working of different departments and their technicalities.

We are working at a site office which is about 200Km from the main office, located in Riyadh city. Our company has a motor insurance policy covering us from losses due to accidents to our vehicle as well as third parties. I would like to know if my vehicle meets with an accident on highway, whether the charges of carrying the vehicle to workshop is considered as a cost of damage?


Most of the people living in isolated areas, who get their vehicle towed to garages are not aware that towing charges are recoverable under their vehicle policy. If you are having a comprehensive Vehicle Insurance policy then there is an element of Towing charges mentioned under one of sections of the policy which provides cover to a certain limit. The limit ranges between SR. 250 to SR. 2500 depending upon the type of your vehicle. If it is small car then the towing limit is small. If it is a large vehicle then a large towing limit is allowed. This towing charges is applicable to accidents occurring anywhere in the geographical limits and not necessary on highways. If the vehicle meets with an accident and is not in a position of being self driven, then the towing charges are re-imbursed by the Insurance Company. Some Insurance companies have arrangements with garages and/or towing companies for towing the vehicle to the Garage for repairs. Hence it is always better to consult your insurer on this issue.

Recently one of our employee whilst retrieving a file from the top end of the rack, fell down and got his hip bone fractured. We contacted the insurer and they refused to entertain the claim by saying that it is work-related


Most of the standard Medical Insurance Policies issued in Saudi Arabia excludes claims arising out of any work related accident and/or disease. Under normal circumstances the work related injuries are not covered by medical policies, however certain insurers provide extension to the work related injuries under medical coverage or cover medical expenses under separate Workmen Compensation Policy. Most of the establishments are paying Government Organization of Social Insurance (GOSI) a fees at a fixed rate to cover the employees against work related injuries and diseases. There is a time limit for lodging claims with GOSI. If your company is a member of GOSI and regularly paying their premiums then you can recover your claim from GOSI. Some major hospitals have very good set up to handle GOSI cases.