Insurers urged to follow procedures related to motor sales

The Saudi Arabian Monetary Agency (SAMA) has urged insurance companies to strictly follow the current procedures in case of selling an insured vehicle.

According to SAMA’s directive, insurers must henceforth immediately cancel the vehicle cover of the former owner and, if necessary, to refund the premium of the “unexpired” part of the insurance policy.

It should be noted that, the insured are, in their turn, invited to initiate these procedures at the principal office of their insurer once the vehicle owner's name is officially changed