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.
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,
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:
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
(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.
(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:
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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