SAMA: Insurance companies must settle third party claims within 5 days if amount is below SR2000

SAMA: Insurance companies must settle third party claims within 5 days if amount is below SR2000

Okaz/Saudi Gazette RIYADH — The Saudi Central Bank (SAMA) has instructed that it is mandatory for all insurance companies to settle insurance claims for third-party vehicles for individuals if the value does not exceed SR2000. The claim shall be settled within a period not exceeding five working days from the date of receiving the claim, SAMA said in a statement on its website. The Central Bank updated the model form for compulsory insurance claims for third party vehicles, indicating that submission of application in the updated model would come into force from the middle of August. SAMA has allowed insurance companies to convert the model to digital version to keep pace with the transformation of technical services. SAMA has unified the documents that are required to submit along with mandatory vehicle insurance claims. It also unified the procedures that insurance companies are adhered to in order to settle compulsory vehicle insurance claims. The Central Bank has obligated the insurance company, upon receiving any claim, to provide the applicant with a receipt stating that the claim has been received and shall inform the applicant, if there are any deficiencies in the claim, about it within seven days of receiving it. All