Article 301 of the Saudi Commercial Maritime Law
المادة 301 من النظام البحري التجاري · الفصل الأول: الأحكام العامة
The article requires the insured to notify the insurer within three working days of circumstances that increase the risk, and sets the effect of notifying or not notifying depending on whether the increase was caused by the insured.
Official text (Arabic)
This article has not been amended since the law was issued.
1- على المؤمن له أن يبلغ المؤمِّن بالظروف التي تطرأ أثناء سريان وثيقة التأمين ويكون من شأنها زيادة الخطر الذي يتحمله المؤمِّن, وذلك خلال ثلاثة أيام عمل من تاريخ العلم بها، فإن لم يُبلِّغ في هذا الميعاد جاز للمؤمِّن فسخ العقد.
2- إذا وقع الإبلاغ في الميعاد المنصوص عليه في الفقرة (1) من هذه المادة, وتبين أن زيادة الخطر لم تكن ناشئة عن فعل المؤمن له؛ بقي التأمين سارياً مقابل زيادة في قسط التأمين.
3- إذا كانت زيادة الخطر ناشئة عن فعل المؤمن له, جاز للمؤمِّن فسخ العقد خلال ثلاثة أيام عمل من تاريخ إبلاغه بزيادة الخطر، أو إبقاء العقد مع المطالبة بزيادة قسط التأمين مقابل زيادة الخطر. وفي الحالة الأولى يكون للجهة القضائية المختصة -بناء على طلب المؤمن- أن تحكم له بمبلغ مساوٍ لقسط التأمين.
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 301 explained in plain English
This article regulates what happens if the risk increases while the insurance policy is in force:
The duty to notify (Paragraph 1): the insured must notify the insurer of circumstances that arise while the policy is in force and are such as to increase the risk, within three working days of the date he learns of them. If he does not notify within this period, the insurer may terminate the contract.
If he notifies in time:
- and the increase is not caused by him (Paragraph 2): the insurance remains in force in return for an increase in the premium.
- and the increase is caused by him (Paragraph 3): within three working days of the date he is notified, the insurer may choose between:
- terminating the contract, in which case the competent judicial authority may, at his request, award him a sum equal to the insurance premium, or
- keeping the contract while claiming an increase in the premium in return for the increased risk.
Article 300 regulates incorrect or withheld particulars at the time of contracting, whereas this article deals with what arises after it. Article 302 deals with the case where the sum insured exceeds the value of the things insured. To assess your position when circumstances change, it is advisable to consult a lawyer specialized in insurance and maritime cases.
Practical example
A merchant insured goods to be carried on a particular ship, then learned that the ship would pass through a more dangerous area than expected, without his having any hand in it. He must notify the insurance company within three working days of learning, and the insurance remains in force in return for an increase in the premium. Had he not notified in time, the company could have terminated the 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 301 of the Saudi Commercial Maritime Law
When must the maritime insurer be notified of an increase in risk?
Within three working days of the date of learning of circumstances that arise while the policy is in force and are such as to increase the risk.
What happens if I do not notify in time?
The insurer may terminate the contract.
Does the insurance continue if I notify and the increase is not my doing?
Yes. The insurance remains in force in return for an increase in the insurance premium.
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- Article 236
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- Article 295
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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.