Insurance companies are required to pay claimants up to SR10 million within 15 days of the submission of a motor vehicle accident claim, according to new regulations which come into force on March 12, 2012. Maj. Gen. Sulaiman Al-Ajlan, Director General of Traffic Administration in the Kingdom, said this is one of 10 requirements outlined in the unified document for compulsory vehicle insurance. The amounts paid out would cover blood money and medical expenses. The new regulations also make it difficult for insurance companies to refuse to pay third party claims, media reports said. The regulations have been introduced by government to ensure that third party claimants do not have to pay their medical and other costs out of their own pockets, regardless of who caused the accident. Al-Ajlan said the Saudi Arabian Monetary Agency (SAMA), in conjunction with the Traffic Administration, approved the document produced by a working team. Final approval was given by Crown Prince Naif Bin Abdul Aziz, Deputy Premier and Minister of Interior. Insurance companies have condemned the new regulations as “unworkable”. They have been particularly critical of requirements that make it obligatory for them to claim damages from the driver responsible for the accident, after they have paid out the third party claim. Insurance companies claim that it would be practically impossible to reclaim money from any driver after a crash. Sources say “many insurance companies have now lodged formal complaints regarding the document, but SAMA has yet to respond.” However, supporters of the document claim “the criticisms are not legitimate because insurers should be responsible for paying compensation even if the driver or the insured is responsible for the accident.”
