Saudi Arabia: Regulator warns insurers against denying motor cover based on customer's age

Source: Middle East Insurance Review | May 2018

The Saudi Arabian Monetary Authority (SAMA) has asserted that it is prohibited for motor insurers to deny compulsory or comprehensive auto insurance to any customer who has a valid driving licence.

SAMA has been monitoring cases in which insurers had refused cover to senior citizens or young people despite their possessing a valid driver’s licence, reported Al Madina.

The regulator noted that several insurers had notified some of their clients — which are car rental companies, finance companies and banks licensed to carry out financial leasing activities for vehicles — not to cover users of vehicles if they were senior or young people. This has led to the refusal of some of these companies to lease their vehicles to these categories of prospective customers.

SAMA said it would take firm and decisive action against any insurer that violates regulations. M

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