Article 298 of the Saudi Commercial Maritime Law
المادة 298 من النظام البحري التجاري · الفصل الأول: الأحكام العامة
The article provides that an insurance policy has no effect if ninety days pass from the contract date or the date set for the risk to begin without the insured risk beginning, with an exception for open policies except as to the first shipment.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يترتب على وثيقة التأمين أثر إذا انقضى تسعون يوماً من تاريخ عقد التأمين, أو من التاريخ المحدد لبدء سريان الخطر؛ دون أن يبدأ الخطر المؤمن منه في السريان. ولا يسري هذا الحكم على وثائق التأمين بالاشتراك إلا بالنسبة إلى الشحنة الأولى.
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 298 explained in plain English
This article sets a time limit for the insured risk to begin to run, failing which the policy loses its effect:
- The period: ninety days.
- Start of counting: from the date of the insurance contract, or from the date set for the risk to begin to run.
- The effect: if the period passes without the insured risk beginning to run, the policy has no effect.
Someone who insures a shipment and then delays shipping it should watch this period, because the policy may lose its effect if the voyage or the insured risk does not begin within it.
Exception for open (floating) policies: this rule does not apply to insurance policies by participation except as to the first shipment. In these policies the period applies to the first shipment only. The article does not define a policy by participation.
Article 297 requires a party to the insurance to have an interest in the risk not occurring, and Article 299 provides that the insurance contract is based on the principle of good faith. Anyone who fears the period may expire on his policy may consult a lawyer specialized in insurance and maritime cases.
Practical example
A company in Riyadh concluded an insurance contract on a shipment on 1 Safar, with the risk to begin when it was shipped, but the shipment was not shipped for commercial reasons. If ninety days pass from the date of the contract without the insured risk beginning to run, the policy has no effect.
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 298 of the Saudi Commercial Maritime Law
Does a maritime insurance policy lapse if the goods are not shipped?
The policy has no effect if ninety days pass from the date of the contract or the date set for the risk to begin without the insured risk beginning to run.
Does the ninety-day period apply to policies by participation?
It applies to them only as to the first shipment.
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.