- JEDDAH: Insurance companies have to pay back part of the money paid in car insurance premiums when a policy owner sells his vehicle, according to a revised executive traffic bylaw approved by Crown Prince Naif, deputy premier and minister of interior.
The payment will be based on the insurance policy, the revised article of the bylaw says.
Changes were also made to Paragraph 8/15 of the bylaw that asks insurance companies to pay compensations to those who were not harmed in an accident involving the insured vehicle.
The new changes, which were proposed by Assistant Interior Minister Prince Muhammad bin Naif, included removal of Paragraph 8/16 from the bylaw.
In accordance with the revised law, the Traffic Department will inform the Saudi Arabian Monetary Agency about insurance companies that violate their terms and conditions and delay payment of compensations to policy owners.
The new changes will come into effect soon after its publication in the official gazette.