Saudi insurers to comply with SAMA order on 30-day grace period

Insurance companies confirmed their commitment to comply with the Saudi Arabian Monetary Authority’s (SAMA) circular dated April 9, that gives policyholders an extra 30 days after the expiration of insurance policies to get the no-claim discount rates, reported Alriyadh newspaper citing Basem Odeh, chairman of the Insurance Executive Committee.

SAMA has also waived the condition requiring a continuous insurance policy as a condition to get the discounts as it noticed that the condition deprived some policyholders from getting their discounts, the committee said.

SAMA has previously required all auto insurance companies to provide discounted rates for clients with no history of accident claims, Argaam earlier reported.

Companies should provide a 15 percent discount on the premium rates for one-year coverage, and 30 percent for three-year coverage, SAMA said.