The Saudi Insurance Authority has said that the scope of insurance coverage for drivers varies according to the motor insurance policy, according to a statement it published yesterday.
The regulator clarified that in comprehensive private vehicle insurance for individuals, coverage includes the insured, and the driver who is related to the insured, namely: the father, mother, husband, wife, son, daughter, and brother, in addition to the driver who is under the sponsorship of the insured or works for him under an employment contract, in accordance with the terms and conditions of the policy and the requirements of regular driving.
Any driver who does not fall within the categories covered by the definition of the driver in the insurance policy can be named as a driver by including his name in the policy, according to the insurance company’s procedures and its approved underwriting and pricing rules.
The Authority also stressed the importance of distinguishing between third-party liability coverage and coverage for damages or losses to the insured vehicle itself.
The regulator said that not naming the driver in the policy does not necessarily mean the loss of all insurance coverage; a distinction must be made between liability towards third parties and damages to the insured vehicle itself.
If the vehicle is driven by a qualified driver who is not named in the comprehensive insurance policy, the civil liability towards the third party remains covered according to the provisions and conditions of mandatory vehicle insurance.
The Insurance Authority noted that the basic coverage of comprehensive insurance does not include loss or damage to the insured vehicle as a result of the accident if the driver is not covered by the coverage provided for the vehicle, unless the policy includes additional coverage that stipulates coverage for such a case.
It added that an accident occurring while being driven by an unnamed driver may result in compensation for the affected third party, but not compensation for damages to the insured vehicle itself, depending on the driver's age, description, policy terms, and selected additional coverages.
In some cases, the insurance company may also have the right to seek recourse against the insured or the driver after compensating the third party, whenever one of the cases of recourse stipulated in the unified policy for compulsory vehicle insurance is realised, without this affecting the third party’s right to obtain compensation in accordance with the regulatory provisions.
As for mandatory third-party vehicle insurance, the primary purpose of the policy is to cover civil liability towards the third party for bodily and material damages and expenses resulting from the accident, in accordance with the terms of the policy. The coverage does not require that the driver be a relative of the vehicle owner or that his name be listed in the policy, taking into account the requirements of regular driving, cases of reversal, and the exceptions stipulated.
Regarding comprehensive insurance for vehicles leased to individuals, the scope of coverage for the vehicle itself is related to the authorised drivers whose data is recorded according to the provisions and schedule of the policy. If it is desired to add another driver, the procedures for adding him and the required regulatory authorisations must be completed with the relevant authorities and the insurance company.
The Insurance Authority stressed the importance of policyholders reviewing the policy schedule, coverages and exclusions before allowing anyone to drive the vehicle, and specifically checking whether the coverage includes the insured vehicle itself when driving an additional driver, and not simply assuming that having comprehensive insurance means covering the vehicle in all cases.