RIYADH: Heavy rain in Riyadh over the past few days is likely to cost insurance companies over SR100 million in terms of compensation for damaged cars, an expert in insurance matters has said.

“Fresh terms and conditions in insurance policies oblige companies to compensate for losses in such weather conditions,” Abdullah Al-Maghlot was quoted as saying by local media.

Adel Al-Issa, media spokesman of insurance companies, said there is no exact information so far about the extent of the losses to vehicles in Riyadh due to the rainfall. “However, we expect the damage to be minimal,” he said.

“The third party policy does not cover compensation in the event of damage to vehicles by floods. The vehicle owner must specifically seek insurance against floods because comprehensive insurance is an additional coverage cost to the client.”

Lawyer Majid Al-Hudiani said that several years ago, insurance companies did not cover rain damage. “However, there have been modifications to insurance policies which include this type of insurance for an additional SR50,” he added.

Fahad Al-Anzi, also a lawyer, said that recently insurance companies have been covering such losses in the event of bad weather, although the general rule is that there is no compensation for damages from storms and other “force majeure” conditions. That coverage is provided by the insurance companies for such damages as per the agreement between the parties.

Lawyer Kateb Al-Shammari said compensation and claims depend on several factors such as the type of policy.