Saudi Arabian Monetary Agency obligates insurance companies to include disaster coverage

RIYADH: The Saudi Arabian Monetary Agency (SAMA) has obliged insurance companies to include comprehensive vehicle insurance policy for individuals or companies covering natural disasters, 3alyoum news site reported.

The insurance includes damage caused by floods, rain and cold as mandatory coverage in the overall insurance product.

According to information obtained by 3alyoum news site, Hesham Tashkandi, director general of insurance control department at SAMA, issued a circular in which he stressed that all insurance companies must modify their products to comply with the need for comprehensive insurance coverage to include natural disasters.

He warned that “the department will apply legal procedures to companies violating this circular, starting in January 2018.”

“This is in the interest of SAMA to ensure that insurance claimants have adequate information on insurance products and the appropriate coverage for their needs,” he added.