Saudi Arabia: New centre for motor insurance dispute resolution launched
Source: Middle East Insurance Review | Jun 2019
The General Secretariat of the Committees for Resolution of Insurance Disputes and Violations has launched the Center for Settlement of Lawsuits at the General Secretariat for resolution of lawsuits filed by individuals against Saudi insurers.
The centre will deal with disputes arising from motor insurance contracts owned by individuals and the compensation claim should not exceed SAR50,000 ($13,333), in accordance with the rules specified in the procedures governing the reconciliation. This service is deemed as an alternative means for the amicable settlement of insurance disputes.
The Secretariat General for Committees said it has signed agreements with the licensed insurers operating in the kingdom to ensure that they comply with the suggestions in the settlement of insurance lawsuits.
There are several conditions for availing this service, including the fact that the lawsuit should be filed by an individual against insurers which have signed a membership agreement with the settlement centre. The application should be submitted within 12 months from the date of eligibility for compensation. The applications for compensation should also not be related to blood money or physical harm.
However, the service does not prevent individuals from availing of their right to resort to the specialist insurance committees, if they reject the settlement proposal by the conciliator.
The centre has started receiving applications for settlement via the secretariat general’s website www.idc.gov.sa since April 2019. Applications for settlement of disputes can also be done electronically. M
SAR1 = $0.27