Third Party InsuranceQ: My company has asked me to buy a car and do the mandatory Third Party Insurance on my own. What are the requirements for a Third Party insurance and where can I find a good Insurance Company? A: As you are aware that it is mandatory to have a minimum Third Party insurance for any vehicle which is registered with the local transport authority. The minimum requirement needed for insuring your car is a copy of Istimara of the vehicle. Apart from this most of the insurance companies also insist on a duly filled-in proposal form along with an Iqama copy and a copy of driving license. Initially a short period Insurance Certificate is issued and once the Istimara is transferred in your name you may get a Certificate for full period. Almost all companies operating in Saudi Arabia are either registered with Saudi Arabian Monetary Agency or in the process of getting registration, hence you can approach any of the operating insurance companies in your area. I will suggest you to insure with the insurance company which is insuring you company assets, otherwise get insured with the company which has got registration from SAMA. Q: We are a contracting company. Recently we have been awarded a small contract for NDT services. Our principals are asking us to produce a certificate from an insurance company specifying that we have coverage for automobile liability, employers liability and commercial general liability. Currently we are insuring our cars on comprehensive basis only. We do not have any other type of insurance. Will it be expensive to get the certificate? A: Since you already have comprehensive insurance for your vehicles, which will cover the Third Party insurance and take care of the automobile liability. On employers' liability part you may already have GOSI coverage. Check with your principal whether this is adequate, otherwise you need to buy a workmen compensation (difference in condition) coverage with employers' liability. For CGL, you may have to go for CGL or Public Liability coverage, which is issued based on the contract value. If you have a small contract then the premium will also be small. The WC coverage is based on the wages of the employees involved in the project and this will also be small and depending upon the value. Once your covers are in place ask your insurer to issue the necessary certificate. * Shujaath Ahmed Khan, an M.B.A., General Manager, Creative Associates is also a consultant and an expert in Insurance, Investments and Real Estate. He can be contacted at [email protected], website-www.creativeassociates.blogspot.com. __
