JEDDAH, 15 March 2007 — The Traffic Department will start implementing the new mandatory vehicle insurance scheme on April 1, according to its executive plan. Previously, insurance was linked to the drivers’ licenses, not to specific vehicles.
The Council of Ministers approved the new scheme on Jan. 15, 2007, replacing the license insurance system.
Vehicle owners who have already purchased insurance linked to their driver’s licenses need not worry as these insurance cards are valid for a year from the date of its issuance, the department said.
All licensed insurance companies in the Kingdom will be allowed to provide vehicle insurance. “Third party cooperative insurance on the vehicles of individuals, companies and establishments has been made mandatory without any exception,” the Cabinet said.
Saudis and expatriates applying for the issuance or renewal of their vehicle license and for the transfer of the ownership of their vehicles should produce a vehicle insurance document. Insurance is also required for carrying out any other matters related to vehicle ownership including repair of cars.
