Article 295 of the Saudi Commercial Maritime Law
المادة 295 من النظام البحري التجاري · الفصل الأول: الأحكام العامة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 يجوز له توجيهها إلى المؤمن له, ولو كانت وثيقة التأمين محررة لأمر المستفيد أو لحاملها.
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 295 explained in plain English
This article regulates the form of the insurance policy and who is entitled to claim under it.
Forms of the policy (Paragraph 1): the policy is made out:
- in the name of the insured, or
- to his order, that is, it can be endorsed to another, or
- to bearer.
This flexibility is important in maritime trade, because ownership of goods may pass during the voyage, and the insurance policy passes with it.
The right to claim and defenses (Paragraph 2):
- The lawful holder of the policy has the right to claim compensation.
- But the insurer may raise against him the defenses he could raise against the original insured, even if the policy is made out to the order of the beneficiary or to bearer.
A person who receives the policy therefore does not obtain a stronger right than that of the original insured. Article 294 requires writing to prove the insurance contract and sets the particulars of its policy, and Article 296 states what may be the subject of maritime insurance, such as the ship, the cargo and freight.
Practical example
A merchant insured a shipment under a policy to his order, then sold the shipment during the voyage to a company in Dammam and endorsed the policy to it. The company, as lawful holder, may claim compensation if the shipment is lost, but the insurance company may raise against it the defenses it could have raised against the original merchant.
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 295 of the Saudi Commercial Maritime Law
Can a maritime insurance policy be to bearer?
Yes. The insurance policy is made out in the name of the insured, to his order or to bearer.
Who is entitled to claim insurance compensation?
The lawful holder of the policy has the right to claim compensation.
Can the insurance company raise its defenses against the policy holder?
Yes. The insurer may raise against him the defenses it could raise against the insured, even if the policy is made out to the order of the beneficiary or to bearer.
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 294
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.
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 المؤمِّ
- 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.