IA suspends Al Sagr’s sale of mandotory motor insurance product on non-compliance

Logo of Al Sagr Cooperative Insurance Co.

The Insurance Authority (IA) decided to suspend Al Sagr Cooperative Insurance Co.’s right to sell the mandotory motor insurance product as of today, Feb. 19, for violating the supervisory and regulatory rules and amid the board of directors’ failure to adopt effective governance procedures.

In a statement, the authority said the decision does not relieve Al Sagr Insurance of its obligations to issue valid motor insurance policies for already contracted parties and settle claims that may arise as a result. The latter is also mandated to take all necessary measures to ensure that these parties’ interests are not influenced.

The authority confirmed that this suspension will only be lifted in case of an imminent correction to Al Sagr Insurance’s current conditions and adherence to the set regulatory standards and requirements.

The suspension decision reiterated the IA’s keenness to contribute to the Saudi insurance sector’s stability, its governance, supervision and control. This while protecting the rights of insured persons, beneficiaries and stakeholders.