Car insurance: consumer rights and protection

Updated: January 29, 2025

Post date 3 minutes read

Saudi Arabian Monetary Authority has always been strict with their rules and regulations that are focused on the well being of both the insurer and insured.

This is why insurance companies are always bound to the rules and regulations announced by SAMA throughout the KSA. Besides, every insurance company in Saudi Arabia must know and practice these rights that are given by the institution if they want to be in the safe zone and be backed up by the regulatory body.

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Consumer rights and protection in KSA are:

• Treatment to the insured with credibility: – The Insurance companies in Saudi Arabia must deal with the insured persons with utmost credibility and fulfill their financial and legal obligations as per the laws and regulations provided by the institution. They should also provide special services to clients with a limited budget, senior citizens, and special needs of both genders.
• Transparency in rights:- The car insurance company should disclose all kinds of rights and obligations of both parties to those who are insured and should provide a detailed explanation of information related to insurance. This includes the disclosure of commissions, risk types, premium costs, and features of insurance policy as well.
• Awareness to the customers: – The insurer should run initiatives and educational programs to educate the customers about insurance culture which should also include information about risk to help them make decisions properly.
• Deal professionally with the customers: – Employees of the company should be dealt with the utmost professionalism to adhere to the regulations so that they can deal with the clients professionally thus suiting their interests in all aspects.
• Zero discrimination: – Every service and product of the insurance companies should be provided without any partiality in race, religion, or gender.
• Fraud protection: – The highest security standards from fraud or illegal use should be applied by the insurance companies as they are solely responsible for the customer’s or beneficiary’s interests. 
• Confidentiality: – The information of the customer should be highly confidential with the insurance companies. All kinds of information such as financial, personal, and insurance-related, should be protected by the insurance company and should never be disclosed to the other party without permission from the institution in priority.
• Handling of complaints: – Complaints that are filed on the insurance company by the customers should be followed up and addressed to the authority without any delay as per the regulation and instructions issued by the institution.
• Degree of competition in the market: – Car Insurance companies can probably increase the level of competition in the market by providing the best products and services without violating the regulations and instructions issued by SAMA.
• Commitment to guaranteeing the interest of customers: – The services provided by the company should be based on the interest of the customers.
• Conflicts of customer interests: – A written policy on any kind of conflict of interest should be developed by the company while ensuring fair dealing with all customers. Besides, aspects should also be disclosed to the customers.
• Passable resources: – To provide the necessary financial resources the companies should train the staff. It not only enhances the efficiency of work but also serves the customers in the best way possible.