Article 294 of the Saudi Commercial Maritime Law
المادة 294 من النظام البحري التجاري · الفصل الأول: الأحكام العامة
The article requires a maritime insurance contract and any change to it to be proved in writing, sets the particulars of the insurance policy, and makes a provisional policy binding on both parties until the final policy is issued.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لا يثبت عقد التأمين وكل ما يطرأ عليه إلاَّ بالكتابة.
2- يصدر بموجب عقد التأمين وثيقة تأمين تتضمن البيانات الآتية:
أ- تاريخ عقد التأمين ومكانه.
ب- اسم المؤمِّن والمؤمَّن له وموطنيهما.
ج- محل التأمين.
د- وصف التغطية التأمينية وحدودها واستثناءاتها ومدتها ونطاقها الجغرافي.
هـ- مبلغ التأمين وقسطه.
و- أي بيان آخر تحدده اللوائح.
3- تكون وثيقة التأمين المؤقتة التي يصدرها المؤمن ملزمة للطرفين إلى أن تصدر الوثيقة النهائية.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 294 explained in plain English
This article sets three formal rules for the maritime insurance contract:
1. Proof in writing: the insurance contract is not proved, nor is anything that arises on it by way of amendment or addition, except in writing. Writing here is a condition of proof covering the original contract and any later amendment to it.
2. Particulars of the insurance policy: a policy is issued under the contract containing:
- The date and place of the insurance contract.
- The name of the insurer and the insured and their domiciles.
- The subject of the insurance.
- A description of the insurance cover, its limits, exclusions, duration and geographical scope.
- The sum insured and the premium.
- Any other particular specified by the regulations.
3. The provisional policy: if the insurer issues a provisional insurance policy, it is binding on both parties until the final policy is issued.
Note that the last item leaves it to the regulations to add other particulars, and the article does not state them. Article 293 sets the scope of the maritime insurance provisions, while Article 295 regulates the issue of the policy in the name of the insured, to his order or to bearer.
Practical example
A company in Jeddah agreed orally with an insurance company to insure a shipment, and the insurance company then issued it a written provisional policy pending the final one. This provisional policy is binding on both parties until the final policy is issued, and any later amendment to the contract is proved only in writing.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 294 of the Saudi Commercial Maritime Law
Is a maritime insurance contract valid orally?
The insurance contract and anything that arises on it is proved only in writing.
What particulars must a maritime insurance policy contain?
The date and place of the contract, the names of the insurer and the insured and their domiciles, the subject of insurance, a description of the cover and its limits, exclusions, duration and geographical scope, the sum insured and the premium, and any other particular the regulations specify.
Is the provisional policy binding?
Yes. The provisional insurance policy issued by the insurer is binding on both parties until the final policy is issued.
More articles on Marine Insurance
- Article 139
Ships carrying the Kingdom's nationality are not permitted to sail to areas dominated by the dangers of war, piracy or armed robbery until proof of insurance of their crew against these dangers is provided.
لا يصرح للسفن التي تحمل جنسية المملكة بالسفر إلى المناطق التي تغلب عليها أخطار الحرب, أو أعمال القرصنة أو السطو المسلح, إلا بعد تقديم مالكها أو مجهزها أو مستأجر
- Article 215
Any agreement made before the incident that exempts the carrier from liability for loss of or damage to the goods, alters the burden of proof placed on him, or assigns to him the rights arising from cargo insurance is void.
يقع باطلاً كل اتفاق يتم قبل وقوع الحادث الذي نشأ عنه الضرر, ويكون موضوعه أحد الأمور الآتية: 1- إعفاء الناقل من المسؤولية عن هلاك البضائع أو تلفها. 2- تعديل عبء
- Article 236
The carrier must hold insurance or a guarantee from a recognized body covering its liability for death and bodily injury, and the injured party may claim directly against the insurer or guarantor.
يجب أن يكون لدى الناقل تأمين أو ضمان من جهة معترف بها، لتغطية مسؤوليته عن الوفاة والإصابات البدنية. وفي هذه الحالة يجوز للمتضرر الرجوع المباشر على المؤمن أو الض
- Article 293
The article provides that the maritime insurance provisions apply to an insurance contract covering maritime risks, without prejudice to the Law on Supervision of Cooperative Insurance Companies.
دون إخلال بالأحكام الواردة في نظام مراقبة شركات التأمين التعاوني, تسري أحكام هذا الباب على عقد التأمين الذي يكون موضوعه تغطية الأخطار البحرية.
- Article 295
The article allows a maritime insurance policy to be issued in the name of the insured, to his order or to bearer, and gives its lawful holder the right to claim compensation, subject to the insurer's defenses against the insured.
1- تكون وثيقة التأمين باسم المؤمن له أو لأمره، أو لحاملها. 2- يكون لحامل الوثيقة الشرعي الحق في المطالبة بالتعويض, وللمؤمِّن أن يحتج في مواجهته بالدفوع التي يجو
- Article 296
The article lists what may be the subject of maritime insurance: the ship and its equipment, even if under construction, cargo, containers and property on board, freight and commission, and potential liability relating to the ship and cargo.
يجوز أن يكون محل التأمين البحري ما يأتي: 1- السفينة وأجهزتها, والسفينة التي لا تزال في طور الإنشاء. 2- الحمولة, وحاويات البضائع, وأي ممتلكات موجودة في السفينة.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.