The Saudi Central Bank (SAMA), the regulator of the local insurance market, has launched a public consultation exercise on draft amendments to the Comprehensive Motor Insurance Rules. The amended rules mainly aim to expand motor insurance coverage so as to include relatives, as well as private drivers and others sponsored by the insured. The amendment limits the scope of the coverage to individual clients. Feedback on the draft amendments is to be submitted by Oct. 16, 2023. The proposed revision to the rules is part of SAMA’s continued efforts to develop and support the insurance sector’s growth by providing insurance products that meet market needs. The amendments to the Comprehensive Motor Insurance Rules included paragraph (1.4) of its Article 1, which defined the insured as “a natural or juristic person who purchased the policy from the company and whose name is stated in the policy schedule. The amendments to the draft submitted to the referendum added a new paragraph bearing the number (1.8) in Article 1, which stipulates that the insured driver and the driver who is related by kinship to the insured such as father, mother, husband, wife, son, daughter, brother, sister, or the driver who is under the sponsorship of the insured, or who works for the insured under an employment contract. Subparagraph (C) of Paragraph (3.3) of Article 3 stipulates death, and physical injuries’ and medical expenses for the insured or named driver. The term ‘named driver’ implies the additional driver licensed to drive the motor vehicle and whose name is stated in the policy schedule. The proposed amendment stipulates the deletion of subparagraph (e) of paragraph (3.3) of Article 3, which includes coverage for a driver who is related to the insured, such as father, mother, husband, wife, sons, daughters, brother and sister or the insured’s domestic worker or someone who work for the insured based on a labor law. The draft also includes amendment to subparagraph (3) of paragraph (5.4) of Article 5, which says: If the insured or the named driver is held partially liable for the accident, the deductible shall be calculated in proportion to the percentage of liability assigned to the insured or the named driver regarding the accident only. Subparagraph (4) of Paragraph (5.4) of Article 5 indicated, according to the proposed amendment, that the deductible amount is not charged if the insured or the named driver is not held liable for the accident; according to the report of the competent body attending the accident scene. The amendment to subparagraph (5) of paragraph (5.4) of Article 5 stressed that the company has the right to oblige the insured to pay the deductible amount in the event that there is no other party to the accident and the insured or the named driver held responsible for the accident; based on the report of the competent body attending the accident scene, or the acknowledgement of the insured or the named driver of the liability for the accident. The draft stipulated the amendment of paragraph (5.7) of Article 5 regarding death, physical injury, and medical expenses for the insured or named driver. In the event that the insured chooses to cover death, physical injury, and medical expenses for the insured or named driver, the company is obligated to compensate according to the schedule of benefits shown in the policy schedule. Paragraph (4) of Article 7 included the text “An accident to the motor vehicle when driven by a person other than the insured or named driver.” There are also amendments to Paragraph (13) of Article 7, which stipulates that if the motor vehicle is used for any type of racing, speed trial, or speed or power testing. Paragraph (18) of Article 7 stipulates “any liabilities or costs that are directly or indirectly incurred due to criminal and hostile acts committed by the insured and/or the named driver.” Paragraph (19) of Article 7, according to the proposed amendment, included the text: “If it is proven in the report prepared by the competent body attending the accident scene that the accident was caused deliberately by the insured or the named driver. The amendment saw the addition of Article 8 to the Comprehensive Vehicle Insurance Rules, which states: “In the event that a party other than the insured or the named driver caused the damage or loss to the motor vehicle, and the company compensated the insured for this damage or loss or for death and physical injuries and medical expenses –if covered-, the company has the right to subrogate the insured and pursue the party causing the accident, or the company of the party causing the accident for the indemnity incurred on the motor vehicle.” It is noteworthy that the Comprehensive Motor Insurance Rules, which was announced by SAMA and that came into force on Nov. 1, 2020, aim to regulate the contractual relationship between the insurer and the insured by standardizing the minimum coverage limit of the non-compulsory comprehensive motor insurance and outline coverage provisions of the compulsory and optional coverage to be provided in the policy.