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Comprehensive Private Motor Insurance Policy


“Al-Shamel”

Thank you for choosing Tawuniya

Al-Shamel Insurance Policy” is composed of the following:

• Policy Terms and Conditions, which are included in this


booklet
• Policy Schedule
• Bail Bond
• Endorsements (if any)

All documents relating to this Policy should be perused carefully to


understand the size of cover provided under the Policy and to
become well aware of the conditions and exclusions applied.

The Proposal completed and signed by the Insured or his legal


representative, this Policy including its terms, conditions and
exclusions, limits of cover, the Policy Schedule, Bail Bond and any
endorsements agreed upon in writing and duly signed during the
Policy validity date shall form an integral part of this Policy.

This Policy is issued in accordance with the Cooperative Insurance


Companies Supervision Law promulgated by Royal Decree No.
M/32 dated 02/06/1424H and its Implementing Regulations issued
under Ministerial Resolution No. 1/596 dated 01/03/1425H in this
respect and the decision issued by the Council of Ministers as per
No. 222 dated 13/08/1422H for motor vehicles compulsory
insurance.

In accordance with its Articles of Association as Tawuniya


(hereinafter called "the Company") may from time to time
decide to distribute to the Policyholders all or part of any
annual surplus arising from the insurance operations. The
amount, time and manner of and eligibility to such distribution
are subject to the rules and regulations as are or may be laid
down by the Company's Board of Directors.
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The Insured having applied to Tawuniya (hereinafter called "the


Company”) by a Proposal and a written declaration to insure the
private motor vehicle and agreed to consider them the basis of this
contract and integral part hereof; and having paid the Contribution
required and declared that he perused all terms, conditions and
exclusion of this Policy, the Company has hereby issued this Policy
in accordance with the following:

Definitions
This Section contains the definitions of some words and expressions
used in any of the Policy documents. The following words, phrases
and expressions, wherever they appear in this Policy, shall have the
meanings, which are given below:

“Company or Insurer” – means Tawuniya.

“Insured” – means the natural or judicial person whose name is


listed in the Schedule.

“Proposal” – means the Form completed by the Insured which


information constitutes the basis of the contract and is considered
an integral part of this Policy.

“Policy Schedule” – means the schedule attached with the Policy


in which the limits of cover, period of insurance, conditions and
details of Motor Vehicle and extensions of cover are indicated.

“Period of Insurance” – means the period during which the


insurance cover provided by this Policy is in effect.

“Motor Vehicle” – means the motor vehicle stated in the Schedule.

“Authorized Driver” – means any person stated in the Schedule


and permitted to drive or use the Motor Vehicle by permission of the
Insured.

“Policy” – means the insurance booklet, Proposal, the Schedule,


Insurance Certificate, Bail Bond and Endorsements.
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“Bail Bond” – means the certificate issued by the Company upon


issuing the Policy to the Insured. It is used, subject to the terms of
this Policy, as a guaranty deed in case of third party liability in order
to release the detained Insured and prevent his detaining by the
Police authorities.

“Deductible” – means the amount, which is borne by the Insured


for each and every damage/ loss. The Company liability commences
after using up the deductible and is only effective to Section (1) of
the Policy.

“Depreciation” – means the decrease in the Motor Vehicle’s value


as a result of use, passing of a period of time or technical
prescription and appearance of modern inventions.

“Insured Value” – means the Motor Vehicle’s value as determined


by the Insured upon submitting the Proposal.

“Market Value” – means the value at which the Motor Vehicle is


sold in the market. The market value is changes according to Motor
Vehicle’s condition and supply and demand.

“Extension” – means the insurance cover added by the Insured to


the basic cover against the payment of an additional contribution.

“Temporary Total Disablement” – means a disablement, which


totally prevents the Insured, Authorized Driver or any of the
passengers from attending to his usual business or occupation
temporarily.

“Permanent Total Disablement” – means a disablement, which


entirely prevents the Insured, Authorized Driver or any of the
passengers from attending any business or occupation of any and
every kind and which lasts 52 weeks and at the expiry of that is
beyond hope of improvement.

“Total Loss” – means the complete loss or damage to the insured


Motor Vehicle that renders its repair unfeasible technically or
economically.
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Insurance Cover

The insurance cover will include Section (1) and (2).

Section (1 ) – Loss or Damage to the Insured Motor Vehicle

1. Scope of Cover: The Company will indemnify the Insured


against accidental loss of or damage to any Motor Vehicle
described in the Policy Schedule and its accessories whilst
thereon resulting from any accidental and sudden accident
except any act specifically stated in the Policy Exclusions.

2. Basis of Loss Settlement: The Company may at its option


repair, reinstate or replace the Motor Vehicle or any part thereof
or its accessories or spare parts or may pay in cash the amount
of the loss or damage resulting from accidental occurrence
covered under the Terms and Conditions of this Policy.

a. Partial Loss or Damage: The maximum amount payable


by the Company in respect of any claim for partial loss or
damage shall be the reinstatement of the Motor Vehicle.
This is equal to the labor cost plus the value of spare parts
after deducting the amount of depreciation calculated in
accordance with the “Depreciation Clause” stated
hereunder, provided always that if such parts or
accessories are unobtainable or outdated, indemnification
for said parts or accessories shall not be in excess of
either the latest manufacturer’s price list or the quoted
price.

b. Total Loss or Damage: The maximum amount payable by


the Company in respect of any claim for total loss shall be
limited to the reasonable Market Value of the Motor
Vehicle at the time of occurrence, but not exceeding the
insured sum of the Motor Vehicle. If the Company decides
to pay to the Insured the insured sum, the depreciation
amount will be deducted in accordance with the
“Depreciation Clause” stated hereunder. The Company
reserves the right to declare a total loss if, in its opinion, it
is found that the Motor Vehicle cannot be economically
repaired. When a total loss claim is payable in respect of a
Motor Vehicle the annual contribution in respect of such
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Motor vehicle shall be fully earned by the Company.


Furthermore, the Insured shall transfer the ownership of
the said Motor Vehicle to the Company or its assignees,
provided always that in case of theft, the indemnity will be
affected after 30 days of the Police notifying date

3- Depreciation: In case of loss of or damage to the Insured


Motor Vehicle, the Company will apply the following
deductions for depreciation:

a- In respect of partial loss:


1- If the lost or damaged spare parts are replaced
with new ones or paying the new replacement
value thereof, the Company will not apply any
depreciation in respect of any motor vehicle
less than 7 years age since manufacturing year.
The depreciation will only be applicable on
motor vehicles above 7 years age and the
deduction ratio will be 50% of the value of new
parts replacement.

2- In case of replacement of new tyres, wheels


and/ or wheel caps by new ones, the
depreciation deduction will be 25% per each
year or a part thereof, but up to 50% of the new
replacement value thereof.

3- The “Depreciation Clause” will not be applied to


the windscreen, rear screen and doors screen.

b- In respect of partial loss: If the claim is settled on the


basis of total loss of the insured Motor Vehicle, the
liability of the Company shall not exceed the lesser
of the following two amounts:

1- the insured value of the Motor vehicle


estimated by the Insured as stated in the
Policy Schedule, less 1 pct./ month or portion
thereof from the insurance effective date
under the Policy or latest renewal thereof, or

2- the reasonable market value of the Motor


Vehicle at the happening of loss or damage.
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4. Deductible: In case of loss or damage to the


insured Motor Vehicle, the Company will apply the
amount of deductible stated in the Schedule to all
claims. The Insured will be relieved of paying this
deducible on the condition that there is a third party
involved in the accident who is entirely liable for
such occurrence at 100%, the information of this
party is known and written in the Police Report in
such a manner that he is not escaped or unknown
and that the damages sustained by the insured
Motor Vehicle are estimated and stated in the Police
Report.

5. Protection and Removal: If the Motor Vehicle is


disabled by reason of an accident insured under this
Policy, the Company will, subject to the “Towing,
Care and Protection Limit” stated in the Schedule,
bear the reasonable cost of protection and removal
to a safe place or the nearest workshop.

6. Emergency Medical Expenses: The insurance


cover provided under this Section includes the
emergency medical expenses incurred in connection
with any bodily injury to the driver or passengers of
the insured Motor Vehicle, provided that such bodily
injury is caused as an direct and immediate result of
an accident to the Motor Vehicle covered under this
Policy and up to the limit stated in the Policy
Schedule.

Exceptions to Section (1)

The Company shall not be liable for indemnity in respect of:

1. The amount stated in the Policy Schedule or Endorsements as the


deductible(s) payable by the Insured in the event of a claim.

2. Any consequential loss or loss of use.


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3. Wear and tear, mechanical or electrical breakdown or failure.

4. Damage caused by overloading or strain.

5. Damage to tyres and wheels and the loss of or damage to wheel caps
unless the Motor Vehicle is lost or damaged at the same time of
accident covered.

6. Loss of or damage to goods and/ or personal belongings whilst being


loaded unloaded or carried in/ on the Motor Vehicle.

7. Loss or damage to any trailer unless such trailer is specifically


declared in the Policy Schedule.

8. Loss or damage to the Motor Vehicle as a result of theft or any attempt


threat due to leaving the Motor Vehicle in operating mode, leaving the
keys therein or non-closing of the doors or screens.

9. Radios, stereo equipment, telephones or other accessories other than


those originally installed by the vehicle manufacturers and
incorporated in the original price of the Motor Vehicle unless the make
and values of such accessories are specifically declared in the
Schedule.

10. Loss or damage caused by using the Motor Vehicle in unpaved


streets or sand hills being driven dangerously or recklessly.

11. Damage to the Motor Vehicle caused by sandstorm.


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Section (2) – Liability to Third Parties

Conditions of Section (2)

1. The Company hereby agrees to indemnify the Insured in the


event of an accident caused by or arising from the use of the
Motor Vehicle, subject to the limits of its liability provided for in
the Schedule, against all sums which the Insured or Authorized
Driver shall become legally liable to pay as indemnity to third
parties in respect of:

a. death or bodily injury to any person including the Motor Vehicle’s


passengers excluding the Insured personally and the Motor
Vehicle’s driver at the happening of the accident and their family
members, husband/wife, father & mother, children and the
persons employed by the Insured if they are injured in the course
of and due to the employment. The person is considered a Motor
Vehicle’s passenger whether being carried in or upon or entering
or getting onto or alighting from the Motor Vehicle.

b. damage to the things or property except those owned by the


Insured or Motor Vehicle’s driver at the time of accident or those
held in trust by or in the custody or control of the Insured or the
Motor Vehicle’s driver.

1. The insurance provided under this Section, within the limits of its
Terms and Conditions, is hereby extended to cover the liability of any
Authorized Driver whilst he is driving the insured Motor Vehicle,
provided that such Authorized driver shall, as though he were the
Insured, fully observe, fulfil and be subject to all the Terms of the
Policy.

2. Subject to the condition relating to determining liability provide for in


the Schedule, the Company will comply with the consequential
liability pronounced judicially including the claimant’s legal costs and
expenses, excluding the violations and the Company will effect
payment of compensation to the entitled person.
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3. In the event of death of any person entitled to indemnity under the


insurance cover provided for on this Policy, the Company will in
respect of the liability incurred by such person pay the due indemnity
towards such person to his personal representatives in terms of and
subject to the limitations of this Policy provided that such
representatives shall as though they were the Insured observe, fulfill
and be subject to the Terms of this Policy in so far as they apply.

4. In the event of any accident involving indemnity to more than one


party, the “Liability Limits Clause” provided for in the Policy Schedule
shall apply to the aggregate amount of indemnity to all parties
entitled to an indemnity.

5. The Company will pay all costs and expenses incurred with its
written consent.

6. The Company may, at its own option, arrange for representation at


any inquest, investigations or legal cases relating to any event which
may be the subject of indemnity under this Policy or fatal inquiry in
respect of any death, bodily injury or damage to third parties’
property, which may be the subject of indemnity under the Terms of
this Policy and to undertake the defense proceedings in any Court of
Law in respect of any act or alleged offense causing or relating to
any event, which may be the subject of indemnity under the Terms of
this Policy.

Exceptions to Section (2)

The Company shall not be liable in respect of:

1. Death of or bodily injury to:

a. any person arising out of and in the course of such person’s


employment by the Insured or the Authorized Driver.

b. any person who is a member of the Insured or Authorized Driver's


household (husband, wife, father & mother and children).
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2. loss or damage to the Motor Vehicle insured under this Policy or

property belonging to the Insured or the Authorized Driver or held in

trust by or in the custody or control of the Insured or the Authorized

Driver.

3. any liability or expense directly or indirectly caused by or arising out by

damage to any bridge, weighbridge or viaduct or to any road or

anything beneath by vibration or by the weight of the Motor Vehicle or

of the load carried by the Motor Vehicle.

4. death or bodily injury or damage caused by excess load on the Motor

Vehicle or by Motor Vehicle’s loading or unloading operations.

5. any liability, which attaches by virtue of an agreement but which would

not have attached in the absence of such agreement.

6. Any fines, penalties, bonds or cautions that may be imposed.


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Section (3) –Extensions


In consideration of an additional fee, the Policy cover may be extended to

include the following:

1. Hire Car Facility Extension (for private vehicles category only):


If the Insured adds this extension of cover and pays its additional

contribution prior to occurrence of an accident, the Company will

reimburse the Insured for the actual costs incurred in hiring a motor

vehicle due to an accident covered in accordance with the terms of

this Policy, provided that the sum of indemnity should not exceed the

maximum limit for hiring a car as stated in the Policy Schedule for the

period following the date of occurrence as follows:

a. In the event the Motor Vehicle is not movable due to the


accident, the Company will reimburse the Insured for the actual
expenses incurred for hiring a car from the accident date up to
the date that repairs to the insured motor vehicle are
completed, provided that the Insured should submit the claim
documents to the Company within 24 hours from the time of
occurrence.

b. In the event that the Motor Vehicle is movable after the


accident, the indemnity will be effective from the date of
handing over the motor vehicle to the workshop to the date that
repairs to the motor vehicle are completed.

c. In the event of motor vehicle’s theft, the indemnity for hiring a


motor vehicle will be as follows:
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1. In case the stolen motor vehicle is not found, the validity

date of indemnity will commence from the date of

submitting the notification to the police and expire on the

date of claim settlement.

2. In case the stolen motor vehicle is found, the indemnity

will commence from the date of submitting the

notification and expire on the date that the stolen motor

vehicle is found. Then paragraphs (a) and (b) of this

Section will apply on the remaining period following the

finding of the motor vehicle.

2. Personal Accidents Extension:

If the Insured adds this extension of cover and pays its additional

contribution prior to occurrence of an accident, the Company

undertakes to pay compensation according to the scale and provisions

stated hereunder for the injury as hereinafter described sustained by

the Authorized Driver or any of the passengers specifically stated in

the Schedule as a direct result of an accident to the motor vehicle

described in the Schedule and caused by violent, accidental and

visible means which independently of any other cause shall within 52

weeks of the occurrence of such injury result in:


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Type of cover Scale of Compensation (SR)

1. Death 100,000

2. Total irrevocable loss of all sight in both eyes 100,000

3. Total loss by physical severance at or above the wrist or

ankle of both hands or both feet 100,000

4. Total loss by physical severance at or above the wrist or

ankle of one hand or one foot 100,000

5. Total and irrevocable loss of all sight in one eye 50,000

6. Total and permanent disablement from following

any employment or occupation whatsoever 100,000

7. Expense incurred in respect of Medical and Surgical

treatment 25,000
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Provided always that:

A. Compensation shall not be payable to any one person in

respect of benefits under (1) to (7) inclusive for more than SR

100,000 in aggregate in respect of any one accident.

B. A person over 70 years of age at the time of the accident is not


entitled to any compensation.

C. A person under 16 year of age at the time of the accident shall


receive only 50% of the Scale of Compensation with maximum
aggregate of SR 50,000 in respect of one accident.

D. Such compensation shall be payable only with the approval of


the Insured or the Insured’s legal representative and directly to
the injured person or his/her legal representative whose receipt
shall be a full discharge in respect of the injury to such person,
or to the heirs in case of death.

E. Compensation shall only be payable in respect of injury


sustained by any persons carried inside the cabin of the motor
Vehicle at the time of the accident.

F. If the number of persons (including the driver) in the cabin of the


Motor Vehicle at the time of the accident exceeds the number
stated as the seating capacity in the Schedule, the
compensation payable with be decreased proportionally.

G. Compensation under benefit (7) shall be restricted to treatment


obtained within Saudi Arabia only. However, the Company will
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not compensate any expenses incurred directly or indirectly for


psychological or psychiatric treatment.

3. Geographical Area Extension:

If the Insured adds this extension of cover to include other countries

other than Saudi Arabia and pays the additional contribution prior to

occurrence of an accident, the coverage provided by this Policy is

hereby extended to include Bahrain and/ or GCC countries and/ or

Egypt, Jordan, Lebanon and Syria in respect of the motor vehicle only

meant by this extension, the Company will reimburse the Insured in

accordance with the Terms and Conditions of this Policy for:

a. The coverage is restricted to accidental loss or damage to the


insured motor vehicle only arising out of a sudden accidental event
under Section (1) of this Policy.

b. The coverage is extended to include Personal Accidents benefits,


provided that such benefit should be included in the added
extensions.

c. In the event of partial loss, the “Towing, Care and Protection Limit”
stated in the Policy Schedule will be applied.

d. In the event of total loss, the Towing, Care and Protection Limit in
respect of GCC countries will be SR 500, Egypt and SR 1500 in
respect of Jordan, Lebanon and Syria (SR 1500).

e. Section (1)- Liability to Third Parties of this Policy is excluded of


this coverage.
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f. Any costs relating to accommodation, meals, telephone calls in


order to return and transport the motor vehicle and finalizing the
accident procedures are not reimbursed

g. The exchange rate will be in accordance with the rates declared by


the Saudi Arabian Monetary Agency on the date of occurrence.

4. Age Restriction Extension

If the Insured adds this extension of cover to include the drivers who are

less than 24 years old and pays the additional contribution of this

extension prior to the occurrence of an accident, the Company will

indemnify the Authorized Driver in accordance the Terms and Conditions

of this Policy as follows:

c. Including Drivers between 22-24 years of age:

Under this extension, the coverage provided by this Policy is


hereby extended, only in respect of the Motor Vehicle meant by
this extension, to include the drivers between 22-2 years of age
and hold Driving License issued before less than one Hegira year.

d. Including Drivers 18 years of age and above :

Under this extension, the coverage provided by this Policy is


hereby extended, only in respect of the Motor Vehicle meant by
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this extension, to include the drivers 18 years of age and above


and hold Driving License issued before less than one Hegira year.

e. Including Drivers 17 years of age and above :

Under this extension, the coverage provided by this Policy is


hereby extended, only in respect of the Motor Vehicle meant by
this extension, to include the drivers 17 years of age and above
and hold Driving License issued before less than one Hegira year.

5. Non Applying Depreciation Clause Extension (in case of total loss

indemnity):

If the Insured adds this extension of cover and pays the additional

contribution prior to occurrence of an accident, the Company may, at

its option, pay the total loss indemnity for motor vehicle less than 12

months of age since its manufacturing year by replacing the insured

motor vehicle with a new one of the same make and model or pay its

value in cash. The Company will pay the amount estimated for the

motor vehicle by the Insured.


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Section (4) – Exclusions

The Company shall not be liable in respect of:

1. any loss, damage, liability or expense caused, sustained or


incurred whilst the Motor Vehicle is:

a. outside the borders of Saudi Arabia (unless otherwise


expressly stated in the Policy Schedule).

b. being used otherwise than in accordance with the


“Limitation as to Use” indicated in the Schedule.

c. carrying passengers in excess of its licensed seating


capacity if it is verified that such occurrence is caused by
this breach.

d. being driven by or is for the purpose of being driven by or


in the charge of any person other than the Insured or
Authorized Driver.

e. being used for rallying, racing, pace making, reliability


trials, speed testing or being driven dangerously or
recklessly.

f. being driven by any person whilst under the influence of


intoxicants, drugs or medication, which should not be
taken whilst driving.

g. being driven by any person who is less than 24 years of


age (unless otherwise expressly stated in the Policy
Schedule).
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h. used within any areas of airports or marine ports, which


are not normally accessible to the general public.

i. being used or operated as a tool of trade.

j. being driven by any person who is not holding a driving


license or whose driving license is not valid or does not
permit him to drive such type of Motor Vehicle or where
such driving license is permanently or temporary
cancelled.

k. jumping red traffic lights or driving in the wrong direction


of the permitted flow of traffic by the Insured or the
Authorized Driver.

2. any liability or expense occasioned by happening through or in


consequence directly or indirectly of criminal and/ or offensive
acts by the Insured or Authorized driver.

3. any liability, which attaches by virtue of an agreement but which


would not have attached in the absence of such agreement.

4. any liability or expense occasioned by happening through or in


consequence directly or indirectly of:

a. war, invasion, act of foreign enemies, hostilities (whether


war be declared or not), civil war;

b. mutiny, military or popular rising, insurrection, rebellion,


revolution, military or usurped power, martial law or state
of siege or any of the events or causes which determine
the proclamation or maintenance of martial law or state of
siege, or acts pf terrorism committed by a person or
persons acting on behalf of or in connection with any
organization. For the purpose of this Exception,
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“terrorism” means the use of violence for political ends


and includes any use of violence for the purpose of
putting the public or any section of the public in fear;

c. strike, riot, civil commotion, labor disturbances;

d. confiscation, requisition, seizure, destruction or damage


by order of the Government de jure or de facto or any
public, municipal or local authority.

5. any liability or expenses directly or indirectly caused by or


arising from or contributed to by :

a- nuclear weapons material,

b- ionizing radiations or contamination by radioactivity from


any nuclear fuel or from any nuclear waste from the
combustion of nuclear fuel and solely for the purpose of
this Exception combustion shall include any self-sustaining
process of nuclear fission,

c- Storm, typhoon, hurricane and cyclone,

d- any fines, penalties, bonds or cautions that may be


imposed,

6. All claims arising out of this Policy shall be forfeited after the
expiration of three (3) years from the actual date of an
accident.

Section (5) – General Conditions


1. Interpretation

The Policy, Schedule, General Conditions, any Special Conditions,


Exceptions, Warranties, Exclusions and Endorsements, known
collectively as the “Terms of the Policy”, shall be read together as
one contract and any word or expression to which a special
meaning has been attached in any part shall bear such meaning
throughout.
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2. Other Insurances

If at the time any claim arises under this Policy there shall be any
other insurance covering the same liability or expense the
Company shall be liable to pay such liability or expense provided
that the Company shall have the right to take the place of the
Insured against others to recover its respective ratable proportion
of such claim.

3. Alteration

The Insured shall give the Company within 48 hours a notice in


writing of any alteration, which materially affects the specification,
purpose of use and ownership of the Motor Vehicle insured or any
other act that affects the judgment of the Company in deciding
whether to accept a risk or not and if it decides to accept, the
terms on which it will do so or premium payable. This insurance
shall cease from the date of such alteration unless the Insured
obtains the agreement of the Company to such alteration in
writing.

4. Misrepresentation, Misdescription and Non-Disclosure

This insurance shall be voidable if there had been


misrepresentation, misdescription or non-disclosure of any
material fact. (Definition: A material fact is one which affects the
judgment of the Company in deciding whether to accept a risk or
not and if it decides to accept, the terms on which it will do so. For
an existing insurance it affects the Company’s judgment of
whether it wishes to continue to insure the risk and if so on what
terms or decline it). In case the Company pays any amounts to any
party against a claim or compensation that is due, as revealed
later, to an excluded cause or is not covered under this Policy, the
Company shall have the right to claim the insured to refund the
paid amounts.

5. Defence or Settlement

No admission, offer, promise, payment or settlement shall be


made by or on behalf of the Insured or the Authorized Driver
without the written consent of the Company which shall be entitled,
at any time and if it so desires to take over and conduct in the
name of the Insured/Authorized Driver the defence or settlement of
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any claim or to prosecute in the name of the Insured/Authorized


Driver for its own benefit any claim for indemnity or damages or
otherwise and shall have full discretion in the conduct of any
proceedings and in the settlement of any claim and the
Insured/Authorized Driver shall give all such information and
assistance as the Company may require such as executing powers
of attorney at the Notary Public, submit any documents needed
and the like.

6. Company’s Right to Legal Proceedings

The Company may at its own option:

a. arrange for representation at any inquest or fatal inquiry in


respect of any claim, which may be the subject of indemnity
under this Policy.

b. undertake the defence proceedings in any Court of Law in


respect of any act or alleged defence causing or relating to
any event, which may be the subject of indemnity under this
Policy.

The Insured shall, at the expense of the Company, do and


concur or doing and permit to be done all such acts and things as
may be necessary by the Company for the purpose of enforcing
any rights and remedies or obtaining relief or indemnity from
other parties to which the Company shall be or would become
entitled or subrogated upon its paying for or making good any
loss or damage under this Policy whether such acts and things
shall be or become necessary or required before or after his
indemnification by the Company.

7. Company’s Right to Relinquish Proceedings

At any time after the happening of any event giving rise to a


claim or series of claims under Section (1) or Section (2) of this
Policy the Company may pay to the Insured or Authorized Driver
the full amount of the Company’s liability pursuant to the said two
Sections and relinquish the conduct of any defense, settlement
or proceedings and the Company shall not be responsible for any
damage alleged to have been caused to the Insured or the
Authorized Driver in the consequence of any alleged action or
omission of the Company in connection with such defense,
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settlement or proceedings or of the Company relinquishing such


conduct nor shall the Company be liable for any costs or
expenses whatsoever incurred by the Insured, Authorized Driver
or any claimant or other person after the Company shall have
relinquished such conduct.

8. Claims Procedure

In the event of any accident, which may give rise to a claim under
this Policy, the Insured shall give to the Company fifteen (15)
days notice thereof with full particulars. The Company shall
inspect and examine the Motor Vehicle, which is the subject of
such accident not later than seventy-two (72) hours from the time
of notification of such accident. Every letter, claim, writ, summons
and process, ought to be advised to the Company, shall be
notified and forwarded to the Company immediately on receipt.
Notice shall also be given to the Company immediately the
Insured shall have knowledge of any impending prosecution,
inquest or fatal inquiry in connection with any such occurrence.

9. Fraud

If any claim under this Policy shall be in any respect fraudulent or


if any fraudulent means or devices are used by the Insured or the
Authorized Driver or anyone acting on their behalf or by the third
party to obtain any benefit under this Policy, all benefits shall be
forfeited. The Company shall have the right to claim any of such
parties whose liability on such fraud is verified, whether he is
involved or conspired.

10. Cancellation

This Policy cannot be terminated by the Company or Insured


while being in force so long the Motor Vehicle’s Registration is
still valid. However, the Policy may be terminated by the Insured
if the insured Motor Vehicle's Registration has been cancelled or
a new policy has been issued due to modification or transfer of
the ownership of the Insured Motor Vehicle. In which case the
Company will retain short period contribution for the time the
Policy has been in force as indicated below. The Insured shall
return to the Company all the original insurance documents. The
refunded contribution shall be paid after fifteen (15) days of the
cancellation request date. In which case the Company shall be
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liable to repay on demand a ratable proportion of the Contribution


for the unexpired term from the date of cancellation as
hereunder:

Period of Insurance Minimum Proportion of Annual


Contribution to be retained

Not exceeding one week 12.50%


Not exceeding one month 25.00%
Not exceeding two months 37.50%
Not exceeding three months 50.00%
Not exceeding four months 62.50%
Not exceeding six months 75.00%
Not exceeding eight months 87.50%
Exceeding eight months 100.00%

In spite of that, the Insured shall continue to remain bound by the


Terms of this Policy in connection with incurred claims.

11. Notices

a) Every notice and other communication to the Company required


by these conditions must be written or printed.

b) The Company is under no obligation to notify the Insured of the


expiry of the Policy.

12. Subrogation

The Insured shall, at the expense of the Company, do and concur in


doing and permit to be done all such acts and things as may be
necessary or required by the Company for the purpose of enforcing
any rights or remedies or of obtaining relief or indemnity from other
parties (excluding the persons insured under this Policy) to which
the Company shall be or would become entitled or subrogated upon
its paying for or making good any loss or damage under this Policy
whether such acts and things shall be or become necessary or
required before or after his indemnification by the Company.
25

13. Right of recourse against the person causing the accident

Upon its paying any amount, whatsoever, for claims or damages


which are excluded from the cover under this Policy, as
subsequently verified, or if there has been fraud, forgery, deception
or falsification, the Company has the right of recourse against the
Insured to recover such payment. The Company also has the right
of recourse against the person causing the accident if the insured
Motor Vehicle is stolen or in case of any attempt theft or if the Motor
Vehicle is driven by any person without having permission from the
Insured.

14. Right of recourse against the Insured

The Company has the right of recourse against the Insured to


recover the amounts paid for any claims or damages in the following
cases:

a. If it is verified that the insurance is made on the basis of


misrepresentation, misdescription and non-disclosure by the
Insured of a material fact, which affects the judgment of the
Company in deciding acceptance of the risk or insurance rates or
terms.

b. The motor vehicle is used otherwise than in accordance with the


Limitation as to Use indicated in the Schedule; carrying
passengers in excess of its licensed seating capacity; taking a
load in excess of prescribed weight or which is not packed in the
proper technical manner or exceeding the width, length or height
permissible.

c. Breaching the applicable laws if the violation involves an


intentional felony or offense.

d. If the Motor Vehicle’ insured driver, whether the Insured


personally or any person driving on his consent, does not hold
Driving License to drive such type of vehicle.

e. If it is verified that the accident or bodily injury has arisen of an


act committed by the Insured intentionally and premeditatedly.
26

f. If it is verified that the accident is caused by taking drugs or


alcoholic drinks by the Motor Vehicle’s driver, whether the
insured driver or any person driving on his consent.

g. If it is verified that the Motor Vehicle’s driver has broken traffic


light on red or drives his motor vehicle in a prohibited street.

However, the right of recourse reserved for the Company in


accordance with the terms and conditions of this Policy shall be
with no prejudice to the right of affected party against the
Insured.

15. Multiple sources of insurance

If there are other insurances from more than one insurer covering
the same liability, the Company shall only be liable to pay in respect
of such liability a portion of the indemnity, expense or fees equal to
the ratio between the insured sum and the insured sums collectively.

16. Jurisdiction and Applicable Law

This Policy and any dispute or controversy arising out of or in


connection with it shall be referred to the competent committees
provided for in the Saudi Supervision of Cooperative Insurance
Companies Law promulgated by Royal Decree No. (M/32) dated
02/06/1424H. The laws, regulations and rules of the Kingdom of
Saudi Arabia shall be applicable on such disputes or controversies.

17. All claims arising out of this Policy shall be forfeited after the
expiration of three (3) years from the actual date of an
accident or from the date that the Insured knew of such
accident, unless a convincing reason for such delay is
verified.

18. The Company may, under endorsements to be attached with


this Policy and within the terms and conditions stipulated in
this agreement, insure damages other than those provided for
in this Policy.

19. Submitting the Claim Documents

The Insured shall submit as soon as practically possible and within a


maximum 90 days of accident occurrence date all documents
27

required for the claims relating to Section (1) and (2) of this Policy.
The claim file will be closed decisively, in case such time limit is
exceeded.

20. Reasonable Precautions

The Insured shall take all reasonable steps to safeguard the Motor
Vehicle from loss or damage and to maintain the Motor Vehicle in an
efficient condition and the Company shall have at all times free and
full access to examine the Motor Vehicle or any part thereof. In the
event of any accident or breakdown, the Motor Vehicle shall not be
left unattended without proper precautions being taken to prevent
further loss, damage or liability and if the Motor Vehicle is driven
before the necessary repairs are effected, any extension of the
damage or any further damage to the Motor Vehicle shall be
excluded from the scope of the indemnity granted by this Policy.

21. Insured’s Obligations upon Accident Occurring

a. To notify the concerned authorities (Traffic Police,


Police, Civil Defense. etc) immediately and do not leave
the occurrence site till their arrival.

b. To give notice to the Company directly through the Toll


Free line after occurrence of any accident, injury or
damage.

c. To give immediate notice to the Police in case of theft


or other criminal act and cooperate with the Company
in securing the conviction of the offender.

d. To cooperate with the Company in all times in


completing or submitting any documents or information
may be required by the Company.

e. To refrain from paying any amount to any of the parties


involved in the accident and do not waive any amount
due to the Insured as a result of the accident.

f. The Insured or Authorized Driver shall also give notice


to the Company immediately of any impeding
prosecution, inquest or fatal inquiry in connection with
any such occurrence.
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g. To bring the original Police Report, Repair Permit, copy


of the Motor Vehicle’s Registration, Id. Card/ Residence
Authorization Card (Iqama), Driving License (Rukhsa)
and submit the same to the Claims Management
Services Center and complete the relevant Claim Form.

h. In the event of bodily injuries covered by the Policy, the


Insured shall furnish the Company with the certified
medical reports and all invoices and documents.

i. In case the insured Motor Vehicle is exposed to


accidental damage caused by an accident outside the
Kingdom and the “Geographical Area” includes the
country where the accident occurred and the Insured
desires to have repair effected at the same country, the
Insured shall provide the Company with all documents
required as stated in sub-section (7) above along with
three repair estimates from different workshops plus
photographs of the damaged parts in addition to his
compliance with the procedures mentioned in
subsections 1 to 8 above. The indemnity will be paid in
Saudi Riyal currency in accordance with the exchange
rate approved by the Saudi Arabian Monetary Agency
at the date of occurrence.

This Policy should be read carefully and if there is any doubt as


to the cover or meaning of its contents, please consults the
Company.