Logo ofInsurance Authority (IA)
The Insurance Authority (IA) said that, in light of recent discussions regarding the scope of insurance coverage for drivers, the scope of coverage varies depending on the type of vehicle insurance policy. 
It stressed the importance of distinguishing between third-party liability coverage and coverage for damage or losses incurred by the insured vehicle itself.
In a statement, the authority explained that under comprehensive insurance for individuals’ private vehicles, coverage includes the insured and drivers related to the insured, namely the father, mother, husband, wife, son, daughter and brother, as well as a driver sponsored by the insured or employed by the insured under an employment contract, in accordance with the policy’s terms and conditions and statutory driving requirements.
However, any other driver who does not fall within the categories covered by the policy’s definition of a driver may be added as a “named driver” by including their name in the policy schedule, in accordance with the insurer’s procedures and its approved underwriting and pricing rules.
The authority pointed out that failure to name a driver does not necessarily mean that all insurance coverage is forfeited. A distinction must be made between third-party liability and damage to the insured vehicle itself. If the vehicle is driven by a driver who is eligible for coverage but is not named in the comprehensive insurance policy, civil liability toward third parties remains covered in accordance with the terms and conditions of compulsory motor insurance. However, the basic comprehensive insurance coverage does not cover loss or damage to the insured vehicle resulting from an accident if the driver is not covered under the vehicle’s prescribed coverage, unless the policy includes additional coverage that specifically covers such a case.
Accordingly, an accident involving an unnamed driver may result in compensation being paid to the affected third party, while damage to the insured vehicle itself is not compensated, depending on the driver’s age and status, the policy terms and the additional coverage selected.
The authority further explained that in some cases, the insurer may also have the right to seek recovery from the insured or the driver after compensating the third party, when any of the recovery cases stipulated in the Unified Compulsory Motor Insurance Policy apply, without affecting the third party’s right to receive compensation in accordance with applicable regulations.
Under compulsory third-party motor insurance, meanwhile, the primary purpose of the policy is to cover civil liability toward third parties for bodily and material damage and expenses arising from an accident, in accordance with the policy’s terms. Coverage does not require the driver to be a relative of the vehicle owner or to be named in the policy, subject to statutory driving requirements and the recovery cases and exclusions stipulated in the policy.
Regarding comprehensive insurance for vehicles leased through financing by individuals, the authority said that coverage for the vehicle itself is linked to authorized drivers whose details are recorded in accordance with the policy’s terms and schedule. Anyone wishing to add another driver must complete the required procedures for adding the driver and obtain the necessary statutory authorizations from the relevant authorities and the insurer.
The IA stressed the importance of policyholders reviewing the policy schedule, coverage and exclusions before allowing anyone to drive the vehicle, particularly checking whether coverage extends to the insured vehicle itself when an additional driver is driving it, rather than assuming that comprehensive insurance covers the vehicle in all circumstances.
The authority further emphasized that third-party coverage and coverage for the insured vehicle are separate matters from an insurance perspective. A third party may be entitled to compensation for a particular accident, while damage to the insured vehicle itself may not be covered.
According to data available on Argaam, the Insurance Authority recently announced that it was reviewing the vehicle insurance pricing mechanism to ensure insurers comply with regulatory standards and to help ensure fair and not excessive pricing.
Logo ofInsurance Authority (IA)
The Insurance Authority (IA) said that, in light of recent discussions regarding the scope of insurance coverage for drivers, the scope of coverage varies depending on the type of vehicle insurance policy.
It stressed the importance of distinguishing between third-party liability coverage and coverage for damage or losses incurred by the insured vehicle itself.
In a statement, the authority explained that under comprehensive insurance for individuals’ private vehicles, coverage includes the insured and drivers related to the insured, namely the father, mother, husband, wife, son, daughter and brother, as well as a driver sponsored by the insured or employed by the insured under an employment contract, in accordance with the policy’s terms and conditions and statutory driving requirements.
However, any other driver who does not fall within the categories covered by the policy’s definition of a driver may be added as a “named driver” by including their name in the policy schedule, in accordance with the insurer’s procedures and its approved underwriting and pricing rules.
The authority pointed out that failure to name a driver does not necessarily mean that all insurance coverage is forfeited. A distinction must be made between third-party liability and damage to the insured vehicle itself. If the vehicle is driven by a driver who is eligible for coverage but is not named in the comprehensive insurance policy, civil liability toward third parties remains covered in accordance with the terms and conditions of compulsory motor insurance. However, the basic comprehensive insurance coverage does not cover loss or damage to the insured vehicle resulting from an accident if the driver is not covered under the vehicle’s prescribed coverage, unless the policy includes additional coverage that specifically covers such a case.
Accordingly, an accident involving an unnamed driver may result in compensation being paid to the affected third party, while damage to the insured vehicle itself is not compensated, depending on the driver’s age and status, the policy terms and the additional coverage selected.
The authority further explained that in some cases, the insurer may also have the right to seek recovery from the insured or the driver after compensating the third party, when any of the recovery cases stipulated in the Unified Compulsory Motor Insurance Policy apply, without affecting the third party’s right to receive compensation in accordance with applicable regulations.
Under compulsory third-party motor insurance, meanwhile, the primary purpose of the policy is to cover civil liability toward third parties for bodily and material damage and expenses arising from an accident, in accordance with the policy’s terms. Coverage does not require the driver to be a relative of the vehicle owner or to be named in the policy, subject to statutory driving requirements and the recovery cases and exclusions stipulated in the policy.
Regarding comprehensive insurance for vehicles leased through financing by individuals, the authority said that coverage for the vehicle itself is linked to authorized drivers whose details are recorded in accordance with the policy’s terms and schedule. Anyone wishing to add another driver must complete the required procedures for adding the driver and obtain the necessary statutory authorizations from the relevant authorities and the insurer.
The IA stressed the importance of policyholders reviewing the policy schedule, coverage and exclusions before allowing anyone to drive the vehicle, particularly checking whether coverage extends to the insured vehicle itself when an additional driver is driving it, rather than assuming that comprehensive insurance covers the vehicle in all circumstances.
The authority further emphasized that third-party coverage and coverage for the insured vehicle are separate matters from an insurance perspective. A third party may be entitled to compensation for a particular accident, while damage to the insured vehicle itself may not be covered.
According to data available on Argaam, the Insurance Authority recently announced that it was reviewing the vehicle insurance pricing mechanism to ensure insurers comply with regulatory standards and to help ensure fair and not excessive pricing.
