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Saudi Arabia Clarifies Vehicle Insurance Coverage
The Saudi Arabian Insurance Authority issued a clarification regarding the scope of insurance coverage for drivers in vehicle insurance policies. It clarified that the coverage includes the policyholder's close relatives, such as parents, spouses, and children, as well as drivers who are under the policyholder's custody or employed by them under an employment contract. Additionally, other drivers can be added as "named drivers" in the policy. The authority emphasized that failing to mention a driver in the policy does not mean the liability coverage towards third parties is void if the vehicle is driven by an unnamed driver, provided that the driver is legally qualified. It was also explained that the basic comprehensive insurance coverage does not include damage to the vehicle itself unless such damage is listed under the additional coverages, which could result in third-party compensation only, without coverage for the vehicle damages. Moreover, the authority pointed out that the coverage under mandatory third-party liability insurance relates solely to liability towards third parties and does not require the driver to be a relative of the owner. For vehicles financed through leasing, the procedure to add a new driver must be completed in accordance with the relevant laws. The authority stressed the importance of reviewing the coverage schedule and ensuring comprehensive coverage when adding a driver to prevent any exclusions. Finally, it was clarified that third-party coverage differs from coverage for damages to the vehicle itself.
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