Sanad - Motor (Car) Mandatory (Compulsory) Third Party Liability Insurance - Tawuniya

Extracts of Sanad wordings  - Motor (Car) Mandatory (Compulsory) Third Party Insurance

Terminology used in the Sanad Insurance. 

“Medical Expenses”– means the costs and expenses of medical treatment and medicine incurred by any person as a result of an accident covered under this Policy.

“Other Expenses”– means the expenses incurred by any person as a result of the accident

including the expenses of towing of or carrying the Motor Vehicle and the damage assessment expenses.

“Claimant”– means the natural or judicial person who incurs damage from an accident covered under this Policy and this includes the heirs of natural person in case of his death.

“Claim”– means the written notice to the company claiming indemnity against an accident covered under the terms of this policy.

“Indemnity”– means the sums payable by the Company to the third parties within the maximum limits of legal liability stated in this Policy.

“Premium (Contribution)”– means the amount payable by the Insured to the Company against the consent by the Company to indemnify the third party towards the damage or loss incurred as a direct result of the occurrence of a peril incurred under this Policy.

“Legal Liability”– means the liability of the Insured and/ or Driver towards third parties for the physical or bodily damages caused by the insured Motor.

“Material Fact”– means any fact which affects the judgment of the Insurer in deciding whether to accept a risk or not or affects the premium or the conditions of the insurance contract. For instance, age of its driver, the motor accident and violations encountered.

“Proposal”– means the printed Form prepared by the Company which statements are completed and signed by the Contributor (Insured) for ensuring the accuracy of information stated therein that is considered an integral part of this Policy.

“Schedule”– means the schedule attached with the Policy and constitutes an integral part of it which contains the information relating to the Contributor (Insured) and Authorized Driver, period of insurance, contribution, particulars of insured motor vehicle, limits of cover and extensions of cover required, if any.

“Period of Insurance”– means the period during which the insurance cover provided by this Policy is in effect.

“Bail Bond”– means the certificate issued by the Company on the basis of the insurance policy. It is used, subject to the terms of this Policy, as a guaranty deed relieving its holder from being detained or being placed under the custody of the traffic police authorities in case he causes an accident leading to a loss or damage to a third party.

“Permanent Total Disablement”– means a disablement, including the loss of any body organ, which entirely prevents the Insured, Authorized Driver or any of the passengers from attending any business or occupation of any and every kind and which lasts 52 consecutive weeks and at and investment operations. The Company will distribute part of any net annual surplus arising from the insurance operations to the Policyholders (the Contributors/ Insureds) subject to a minimum of 10% of such net surplus. The amount, time and manner of and eligibility to such distribution are subject to SAMA regulations.

The Contributor (Insured) having applied to the Company by a Proposal and a written declaration and agreed to consider them the basis of this contract and integral part hereof; to insure the motor vehicle which particulars are stated in the Schedule and having paid the Contribution required, the Company has hereby issued this Policy in accordance with its terms, conditions and exclusion stated in the following manner:

Definitions:

The following words, phrases and expressions wherever they appear in this Policy shall have the meanings, which are given below:

“Company” – means “Tawuniya” in its capacity as manager of Policyholders’ Account.

“Policyholders’ account” – means the account allocated for entry of policyholders’ contributions collected, returns on investments of policyholders’ account, compensation received from re-insurers and any indemnities, fees or other expenses deducted from it.

“Compulsory Insurance Policy”– means the “Motor Third Party Liability Insurance Policy” by which the Insurer is committed to indemnify the third party in the event of an accident covered by the Policy against the premium paid by the Insured. This Policy comprises the Bail Bond and endorsements (if any), provided that they shall not be contrary or contradictory to the terms stipulated herein.

“Insured”– means the natural or judicial person whose name is listed in the Schedule who

concludes an insurance policy with the Insurer.

“Driver”–

“Insured”– means everyone who drives a vehicle, public works machinery or motorcycle at the time of accident.

“Motor Vehicle”– means every means of transport prepared for moving on wheels or tracks, moves or towed by strength of automatic or animal mechanism which specifications are indicated in the policy (this does not include trains).

“Third Party”– means every natural or judicial person incurs a damage covered under the terms of this Policy excluding the Insured and/ or driver.

“Bodily Injury”– means death and/ or physical injury to any person including the total or partial disablement whether temporary or permanent.

“Physical Damages”– means the damage to property owned by any person.

In the name of God, Most Merciful, Most CompassionatePraise be to God Alone, Prayers and Peace be upon His Last Prophet, His Family and Companions

Tawuniya earlier name NCCI was established in 1986 and is one of the largest Insurance Companies operating in the Saudi Arabia. They are also offering various types of Motor Insurance for Individual and Corporate Accounts.

The Individual Motor Policies (Personal Lines) are as follows,

• Rukhsa
• Sanad
• Sanad Plus Individual
• Alshamel

The compulsory and the most appropriate cover is Sanad and the exhaustive details are provided by Tawuniya as follows,

(2) Death or bodily injury to the Insured or Driver (unless otherwise expressly stated in the policy schedule)

(3) Loss or damage to the insured motor vehicle or property owned by the Insured or Driver, both inside and outside the motor vehicle.

(4) Loss of or damage to goods transported by the insured motor vehicle.

(5) Any fines, penalties, bonds or cautions that may be imposed on the Insured or Driver due to the accident.

(6) Accidents occurring outside the Geographical Area stated in the Policy Schedule.

Surplus Distribution: The surplus will be distributed to the Insureds in accordance with the provisions of Article (70) of the Implementing Regulations of the Cooperative Insurance Companies Supervision Law promulgated by Royal Decree No. M/32 dated 02/06/1424H.

Section (4)–Exceptions (the cases not covered by insurance under this Policy)

The Company will not be liable for the payment of indemnity in any of the following cases:

(1) any liability or expenses caused directly or indirectly of the following:

a. war, invasion, act of foreign enemies, hostilities or war-like operations (whether war

be declared or not), civil war.

b. mutiny, military or popular rising, insurrection, rebellion, revolution, military or usurped

power, martial law or state of siege or any of the events or causes which determine

the proclamation or maintenance of martial law or state of siege, or acts of terrorism

committed by a person or persons acting individually or on behalf of or in connection

with any organization. For the purpose of this Exception, “terrorism” means the use of

violence for political, intellectual, philosophical, ethnic, racial, social or religious ends.

It includes any use of violence for the purpose of putting the public and/ or any section

of the public in fear or affecting and/ or causing any unrest, and/ or intervention in

any operations, activities and/ or policies relating to the government or causing any

unrest that negatively affects the national economy of any of its sectors.

c. strike, riot, civil commotion or labor disturbances;

d. any liability or expenses directly or indirectly caused by or arising from or contributed

to by nuclear weapons material, ionizing radiations or contamination by radioactivity

from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel

and solely for the purpose of this Exception combustion shall include any self-sustaining

process of nuclear fission.

e. natural catastrophes such as hurricane, cyclone and tornado, earthquake, flood or and

volcanic eruption (unless otherwise expressly stated in the policy schedule)

(8) Cancellation:This Policy cannot be terminated by the Company or Insured while being in

force except at any of the following cases:

1. Cancellation of the motor vehicle’s Registration;

2. Transfer of the ownership of the insured motor vehicle to another owner;

3. Issuance of a new policy from another insurance company.

In case the Insured desires to cancel the policy, he shall return it to the Company along with

The  Cancellation Request. In which case the Company will retain short period contribution for  the time the Policy has been in force within fifteen (15) days of cancellation date pursuant to this table:

Period of insurance prior to cancellation request

Maximum Proportion of Annual Contribution to be

Retained.

1 - 7 days                                87.5%

8 - 30 days                              75%

31 - 60 days                            60%

61 - 90 days                            50%

91 - 120 days                          45%

121 - 150 day                         40%

151 - 180 days                        35%

181 - 210 days                        25%

211 - 240 days                        20%

241 - 270 days                        10%

271 - 365 days                        Zero

In spite of that, the Company, Insured and Authorized Driver shall continue to remain bound by the Terms of this Policy in connection with obligations arising prior to its cancellation.

(9) Policy issuance and renewal notice:The Company shall have no right to issue this Policy unless it is electronically linked with the applications of Najm Company for Insurance Services. However, the Company shall advise the Insured before two weeks of the policy expiry date to enable the Insured to renew it or obtain a policy from another company.of its receiving to such alteration notice in case it declines to cover the Insured by the Policy.

(3) Company’s Right to Legal Proceedings and Settlement: The Company may at its own

option:

a. Arrange for representation at any inquest or fatal inquiry in respect of any claim, which

may be the subject of indemnity under this Policy.

b. Undertake the defense proceedings on behalf of the Insured or Driver in any judicial

authority in respect of any act or alleged defense relating to any event, which may be

the subject of indemnity under this Policy.

(5) Insured or Driver’s Obligations upon Occurrence of Accident Covered under this Policy:

a. To notify the concerned authorities immediately upon the occurrence of an accident

covered by this Policy and do not leave the occurrence site till the required procedures

are finalized, excluding the cases necessitating leaving the site such as the existence

of bodily injuries or waiting for at least two hours.

b. No admission, offer, promise, payment or settlement shall be made by or on behalf

of the Insured or the Driver without the prior written consent of the Company.

c. To cooperate with the Company and write the legal powers of attorney that enable

the Company to take the pleading, defense and settlement measures on behalf of the

Insured or Driver whenever required by the Company.

d. The Insured or Driver, as the case may be, shall, at the expense of the Company, do all

such acts as may be necessary to recover any legal rights or remedies or of obtaining

relief or indemnity from other parties to which the Company shall be entitled under

this policy.

(6) Company’s Obligations in case of Delay in Settling a Complete Documents Claim:The

Company is liable to indemnify the beneficiary of insurance cover stated in this Policy for any costs he incurs due to the non-use of the damaged insured motor vehicle as a result of the delay by the Company in settling the claim within fifteen days of completing the claim documents and non submitting convincing justifications for such delay in settling the claim.

(7) Fraud:If any claim under this Policy shall be in any respect fraudulent or if any fraudulent means or devices are used by the Insured or the Authorized Driver or anyone acting on their behalf or the third party to obtain any benefit under this Policy, all benefits shall be forfeited. The company shall have the right to claim any of such parties whose liability on such fraud is revealed, whether involved or conspired, provided that the company is obligated to indemnify the third party if was of good will.

a. Compensation shall not be payable to any one person in respect of benefits under (1) to

(7):

i. Inclusive for more than SR 100,000 in aggregate in respect of any one accident.

ii. If the accident was a result, directly or indirectly, of criminal and / or offensive acts by

the Contributor (Insured) or Authorized driver.

b. The age of the person at the time of accident shall not be over 70 years.

c. A person under 16 year of age at the time of the accident shall receive only 50% of the Scale of Compensation with maximum aggregate of SR 50,000 in respect of one accident.

d. Such compensation shall be payable only with the approval of the Contributor (Insured) or the Contributor (Insured)’s legal representative and directly to the injured person or his/her legal representative whose receipt shall be a full discharge in respect of the injury to such person, or to the heirs in case of death.

e. Compensation shall only be payable in respect of injury sustained by any persons carried inside the cabin of the motor Vehicle at the time of the accident.

f. If the number of persons (including the driver) in the cabin of the motor vehicle at the time of the accident exceeds the number stated as the seating capacity in the Schedule, the compensation payable will be decreased proportionately, but this compensation shall not be payable if carrying more passengers than the registered seating capacity was a cause of the accident.

g. Compensation under benefit (7) shall be restricted to treatment obtained within Saudi

Arabia only. However, the Company will not compensate any expenses incurred directly

or indirectly for psychological or psychiatric treatment.

h. Compensation under benefit (6) shall be payable only when the disablement has lasted for

52 consecutive weeks and has been certified by a qualified registered medical practitioner

appointed by the Insurer.

Section (3) – General Conditions

(1) Multiple sources of insurance: If the Motor Vehicle is insured by the same type of insurance from more than one insurer covering the same liability, the Company shall only be liable to pay in respect of such liability a portion of the indemnity, expense or fees equal to the ratio between the insured sum and the insured sums collectively. However, if there is another type of insurance covering the same liability or expenses (such as the existence of Al-Shamel Insurance Policy), the Company shall be liable to pay such liability or expense provided that the Company shall have the right to take the place of the Insured against others to recover its respective ratable proportion of such claim.

(2) Alteration: The Insured shall give the Company a notice in writing within ten working days of any material alteration to the material data disclosed in the insurance proposal. The Company shall advise the Insured within three working days commencing from the date Motor Vehicle caused directly by hail, flood due to rain and torrents resulting thereof, subject to a maximum of SR 20,000 any one event and in the aggregate during the period of Insurance.

It is further agreed and understood that this extension shall exclude any loss or damage arising directly or indirectly from storms, earthquake, typhoon, hurricane, tornado and cyclone.

In the event of any loss or damage to the insured motor vehicle caused by or arising from or attributable to or contributed to by any of the natural perils covered under this Policy, the liability of the Company shall not exceed the reasonable actual cost of repair necessity required in respect of the damaged motor vehicle or the maximum amount of SR 20,000 whichever is less.

However, the Company reserves the right to consider a total loss if in its opinion it is found that the motor vehicle cannot be economically repaired. In such case the Company liability shall be limited to pay the difference between the reasonable market value of the Motor vehicle at the time of the loss or damage and the salvage value (as may be decided by Tawuniya), or the maximum value of the Company’s liability which shall not exceed in aggregate SR 20,000 whichever is less. Furthermore the salvage shall be retained by the Insured as his own property, and the Company shall not be obligated to buy-back such salvage.

Personal Accident

If the Contributor (Insured) adds this extension of cover, the Company undertakes to pay

compensation according to the scale and provisions stated hereunder for the injury as hereinafter described, sustained by the Contributor(Insured) or Authorized Driver and/or any of the passengers specifically stated in the Policy Schedule such as 'Driver only' or 'Driver and Passengers', as a direct result of an accident to the motor vehicle described in the Policy Schedule and caused by violent, accidental and visible means which independently of any other cause shall within 52 consecutive weeks of the occurrence of such injury result in:

Type of cover

Scale of Compensation (SR)

1. Death-100,000

2. Total irrevocable loss of all sight in both eyes-100,000

3. Total loss by physical severance at or above the wrist or ankle

of both hands or both feet-100,000

4. Total loss by physical severance at or above the wrist or ankle

of one hand or one foot-50,000

5. Total irrevocable loss of all sight in one eye-50,000

6. Permanent total disablement from attending any

employment or occupation whatsoever-100,000

7. Expense incurred in respect of Medical and Surgical treatment-25,000

The enforcement of the above Scale of Compensation shall be subject to the following:

The Company shall inform the claimant in writing of acceptance or rejection of the claim and in case of accepting the claim, the Company is obliged to clarify the amount of compensation and how it is calculated. In case of rejection of the claim, the Company shall comply with the following:

1. Provide the claimant with the reasons for rejection.

2. Inform the claimant of the possibility of filing the case before the committees for the

settlement of insurance disputes and violations provided for in Article (20) of the Cooperative Insurance Companies Supervision Law for consideration by such Committees.

3. Provide the claimant with a copy of the policies and documents supporting the company’s decision if the claimant so requires from the Company in writing.

Section (2) – Extensions of Cover

These extensions are applied to the motor vehicles for which the benefits and extension of insurance cover are selected as indicated in the Schedule.

The Company may, on the basis of a written request by the Contributor (Insured), at the commencement of insurance cover or during the validity of this insurance and within the Terms and Conditions provided for in this Contract, extend the insurance cover to include the indemnity against damages other than those specifically stated in the Policy provided that the Contributor (Insured) has paid the additional Contribution required, and particularly the following:

Younger Drivers

Extension of insurance cover to include the persons below 21 years of age:

1. Extension of Insurance Cover to Include Drivers at 18-21 Years of Age:

 Under this extension, the coverage provided by this Policy is hereby extended, only in respect of the motor vehicle meant by this extension, to include the Drivers at 18-21 years of age and holding a valid driving license.

2. Extension of Insurance Cover to Include Drivers above 17 years and below 18 Years

of Age:

 Under this extension, the coverage provided by this Policy is hereby extended, only in respect of the motor vehicle meant by this extension, to include the Drivers above 17 years and below 18 years of age, provided that the Driver holds a valid Provisional Driving Permit.

Extension for Hail and Floods

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and

conditions contained in the Policy or endorsed thereon, and subject to the Insured having paid the agreed extra premium, this Insurance shall be extended to cover loss or damage to the insured

e. being driven by any person who is less than (21) years of age, unless he is the Insured

himself and unless his name is otherwise expressly stated in the Policy Schedule

amongst the Authorized Drivers who are less than (21) years of age.

f. In case the Motor Vehicle is stolen or forcibly taken.

g. being driven by any person who is not holding a driving license or whose driving license is not valid or does not permit him to drive such type of Motor Vehicle or where such driving license is permanently or temporary cancelled.

h. used within any areas of airports or marine ports, which are not normally accessible

to the general public, unless the Motor Vehicle is used for business purposes within

the permissible limits.

2. If it is proved that there had been misrepresentation, misdescription or non-disclosure of any material fact by the Insured upon concluding the Insurance Contract which affects the judgment of the Company in deciding whether to accept a risk, insurance rate or terms or not to accept them.

3. If it is proved that the accident has arisen of an act committed by the Insured or Driver

intentionally and premeditatedly.

4. If the Insured did not give to the Company a written notice before ten working days of any

material change in the particulars stated in the insurance proposal.

5. Escape of the Insured or Motor Vehicle’s Driver from the accident site.

6. Declaration of the Insured or Driver to bear the liability of the accident without right of the intent to cause damage to the Company.

7. Jumping red traffic lights by the Insured or the Driver.

8. Driving in the wrong direction of the permitted flow of traffic by the Insured or the

Driver.

9. Driving dangerously or recklessly.

Claim Settlement Procedures:Upon receiving any claim, the Company shall provide the claimant with an acknowledgement of receipt and advise the claimant of any documents shortage within seven days of receiving the claim. In addition, the Company will nominate an inspection expert or loss adjuster, if necessary, within a maximum three days of receiving the claim.

The Company shall honestly, fairly and without compromise, settle the sums of claims assessed by the Traffic Department or Najm Company for Insurance Services which are covered under this Policy during a maximum period of fifteen days from the date of receipt of the complete claim documents. In the event that the company fails to abide by its commitment to settle the claims within the statutory period for non logical reasons, the beneficiary of the cover stated in this Policy is entitled to apply to the committees for the settlement of insurance disputes and violations to obligate the insurance company to indemnify him for any costs incurred due to the non use of the Motor Vehicle (such as replacement hire car) due to delay by the company in the settlement of the claim.

the expiry of that, is beyond hope of improvement as certified by a qualified registered medical practitioner appointed by the Insurer.

“Endorsement”– means a printed text issued by the Company, whether at the commencement of cover or during the policy validity, for amending or adding new conditions or for extending the insurance cover and it is considered an integral part of this Policy.

Section (1) – Insurance Cover:

The Insured having applied to the Company by a Proposal (which shall be the basis of this Policy) and having paid (or undertook to pay) the premium and the company accepted this Proposal, the Company hereby undertakes that in case of occurrence of damage covered under this Policy, whether arising of the use or stoppage of the Motor vehicle inside the territory of Saudi Arabia, to indemnify the third party according to the terms and conditions stated in this Policy against all sums which the Insured or Driver shall become legally liable to pay in respect of:

a. Bodily injury to any third party inside or outside the Motor Vehicle.

b. Physical damages outside the motor Vehicle.

Limits of Liability: In the event of an accident occurring during the policy effective period, involving indemnity under the terms of this Policy, the maximum limits of the Company’s liability in respect of bodily injury (including blood money and the sums estimated for injuries and medical expenses) and in respect of property damage shall not exceed SR 10,000,000 (Saudi Riyal ten million) per any one occurrence.

The Company may not insist on the following towards a third-party:With no prejudice to the right of the Company to claim the Insured or Driver, if justifiable, after the payment to a third party, the Company may not insist, towards a third party, on its non-liability for indemnity under this policy because the Insured or Driver commits any violation, whether prior to or after the accident, or due to his non adherence with the contents of this Policy.

Cases where the company is bound to indemnify third parties along with the company’s right of recourse against the Insured, Driver or person causing the accident:The Company has the right of recourse against the Insured, Driver or Third Party causing the accident to recover the amounts paid to third parties for any claims or damages in the following cases:

1. any loss, damage, liability or expense caused, sustained or incurred whilst the insured Motor Vehicle is:

a. being used otherwise than in accordance with the “Limitation as to Use” indicated in

the Schedule.

b. carrying passengers in excess of its licensed seating capacity if it is verified that such

occurrence is caused by this breach.

c. being used for rallying, racing, pace making or reliability trials.

d. being driven by any person whilst under the influence of intoxicants, drugs or medication which should not be taken whilst driving.

This Policy should be read carefully and if there is any doubt as to the cover or

meaning of its contents, please consult the Company.

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