The Insurance Authority, in cooperation with the General Directorate of Civil Defence, has announced the launch of the Third-Party Cooperative Insurance Policy for Crowded Places and High-Risk Activities. The insurance will be mandatory pursuant to a Council of Ministers resolution.
In a statement, the Insurance Authority said, “The policy aims to cover establishments' civil liability for bodily and property damage sustained by visitors and patrons as a result of accidents occurring within covered premises. It protects their rights and strengthens establishments' ability to manage the financial and operational burdens resulting from such incidents. Compensation under the policy varies according to the nature of the activity and its associated level of risk.”
As the insurance will be mandatory, the policy will become a key requirement for obtaining a General Directorate of Civil Defence licence to conduct activities subject to mandatory insurance. Coverage is subject to the terms, conditions, and exclusions set out in the policy. The insurance will be implemented in several phases, covering, among others, a number of economic, commercial, entertainment, and healthcare activities.
The CEO of the Insurance Authority, Eng. Naji Al Faisal Al Tamimi, said that the insurance supports business sustainability and enhances investment attractiveness in sectors and activities subject to mandatory insurance by providing coverage that helps establishments manage risks, mitigate the financial impact of accidents, and strengthen their ability to continue operations and recover from such incidents. This contributes positively to business stability and service quality, strengthens confidence in the Kingdom's investment environment, and supports growth and expansion in line with Saudi Vision 2030.
He emphasised that the Insurance Authority urges owners of establishments, crowded places, and high-risk activities to obtain the policy from licensed insurance companies and review its full details and terms through the Authority's website.
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Details of the new insurance policy include:
Key Coverage and Benefits
Civil liability coverage for establishments
Compensation for bodily and property damage sustained by visitors and patrons
Coverage is subject to the terms, conditions, and exclusions stipulated in the policy
Key Exclusions
Damage resulting from natural disasters and cyberattacks
Professional liability and contractual liability toward employees and trainees
Full exclusions are set out in Article 4 of the policy
Steps to obtain the policy
1.Select a licensed insurance company approved by the Insurance Authority to offer the product.
2.Submit the required establishment details and information on the licensed activity.
3.Determine the insurance premium based on the nature and risk level of the activity.
4.Receive the issued policy and schedule outlining the applicable coverage and limits.
5.Submit the policy as part of the licensing requirements of the General Directorate of Civil Defence.
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Insurance companies licensed to sell the product
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- ACIG?
- Motakamelah
- Medgulf
- Liva
- Al Rajhi
- Arabian Shield
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- GIG
- Malath
- Wataniya
- Chubb
- Tawuniya
- Al Etihad?
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Insurance Beneficiaries
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Importance
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Category
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Fair compensation in the event of bodily or property damage sustained while on the premises.
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Visitors and Patrons
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Protection against unexpected financial burdens arising from their civil liability for accidents occurring at their establishments.
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Establishment Owners
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Greater security and business continuity through insurance coverage that helps mitigate financial burdens arising from covered risks.
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Investors
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Supporting the public safety ecosystem and strengthening coordination between regulatory and supervisory roles.
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Government Entities
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