Insurance companies’ clients are entitled to have a portion of their insurance policy value returned back to them, should they decide to sell their cars, local media reported.

The Saudi Arabian Monetary Agency (SAMA) has ordered insurance companies not to delay the cancelation of car insurance policies if requested by customers upon the sale of their cars, Al-Eqtisadiya reported recently, quoting a letter from SAMA.

According to the report, SAMA observed irregular practices carried out by certain insurance companies regarding the cancelation of policy insurances, the daily said.

Insurance companies should follow a series of procedures in the event of a customer wanting to cancel their car insurance policy and recover part of their subscription. Car owners must make sure that the ownership of the car is transferred to another person and that the cancelation of the insurance policy is organized at the company’s main office, the paper said.

According to SAMA’s order, insurance companies are required to pay back the remaining part of the insurance policy through the issuance of a check to the insured, or through a transfer to their bank account. Additionally, the regulatory comptroller of the insurance company should make sure that the company’s staff and agencies are committed to SAMA’s directives in this regard, the paper stated.

On the other hand, SAMA stressed that all insurance companies must adopt the Gregorian calendar to set the validity and expiry dates of the insurance coverage periods.