Article 296 of the Saudi Commercial Maritime Law
المادة 296 من النظام البحري التجاري · الفصل الأول: الأحكام العامة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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.
3- الأجرة, وأجرة الركاب, والعمولة وأي مبلغ مالي مشابه.
4- أي مسؤولية يحتمل وقوعها تتعلق بالممتلكات المذكورة في الفقرتين (1) و(2) من هذه المادة.
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 296 explained in plain English
This article states what may be the subject of maritime insurance, that is, the things or interests that can be insured:
- The ship: the ship and its equipment, and a ship that is still under construction.
- What is on the ship: the cargo, goods containers, and any property on the ship.
- Sums of money: freight, passenger fares, commission, and any similar sum of money.
- Liability: any liability that may arise relating to the property mentioned in Paragraphs 1 and 2, that is, the ship and what is on it.
Note that insurance is not limited to physical things; it extends to expected sums such as freight, and to potential liability to others. A shipowner, for example, may insure the ship itself, the freight he expects, and his potential liability.
Article 295 regulates the forms of the policy and who claims under it, while Article 297 requires that a party to the contract or its beneficiary have an interest in the risk not occurring.
Practical example
A company in Dammam is building a new ship in a shipyard and expects to use it to carry goods. It may insure the ship while it is still under construction, then the freight it will receive, and any potential liability relating to the ship and its cargo.
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 296 of the Saudi Commercial Maritime Law
Can a ship be insured before its construction is complete?
Yes. The subject of maritime insurance may be a ship that is still under construction.
Can freight be insured?
Yes. Freight, passenger fares, commission and any similar sum of money may be insured.
Does maritime insurance cover liability?
Yes. Any liability that may arise relating to the ship and its equipment, the cargo and the property on board may be insured.
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 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
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.