Article 297 of the Saudi Commercial Maritime Law
المادة 297 من النظام البحري التجاري · الفصل الأول: الأحكام العامة
The article requires a party to a maritime insurance contract or its beneficiary to have an interest in the risk not occurring, and prevents the insured from relying on the reinsurance contract the insurer concludes.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لا يجوز أن يكون طرفاً في عقد التأمين أو مستفيداً منه إلاَّ من كانت له مصلحة في عدم حصول الخطر.
2- لا يحق للمؤمن له أن يتمسك بعقد إعادة التأمين الذي يبرمه المؤمِّن.
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 297 explained in plain English
This article sets two rules:
1. Insurable interest: only a person who has an interest in the risk not occurring may be a party to the insurance contract or a beneficiary of it. Insurance is a means of protecting those who would suffer if the risk occurs, not a means of betting on its occurrence. The owner of goods has an interest in their safety, and the owner of a ship has an interest in its not sinking, but a person with no connection to either may not insure them.
2. Reinsurance: the insurer (the insurance company) may conclude a contract with another insurer for it to bear part of the risk, which is a reinsurance contract. The article provides that the insured has no right to rely on the reinsurance contract the insurer concludes. The insured's relationship remains with the insurer he contracted with, and he cannot bypass him to go to the reinsurer.
Article 296 states what may be the subject of maritime insurance, such as the ship, the cargo, freight and liability, and Article 298 provides that the policy has no effect if ninety days pass without the insured risk beginning to run.
Practical example
A company in Jeddah insured its shipment with an insurance company, and the insurance company in turn reinsured part of the risk with another company. If the shipment is lost, the company that owns the shipment must claim from the insurance company it contracted with, and it has no right to rely on the reinsurance contract.
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 297 of the Saudi Commercial Maritime Law
Who may be a party to maritime insurance?
Only a person who has an interest in the risk not occurring may be a party to the insurance contract or a beneficiary of it.
Can I claim directly from the reinsurance company?
No. The insured has no right to rely on the reinsurance contract the insurer concludes.
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.