Article 307 of the Saudi Commercial Maritime Law
المادة 307 من النظام البحري التجاري · الفصل الأول: الأحكام العامة
The article makes the insurer liable for damage caused by the fault of the insured or his shore-based subordinates unless intentional, grossly negligent or careless, and for damage from the fault of the master or crew, subject to Article 330.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يسأل المؤمِّن عن الضرر المادي الذي يلحق الأشياء المؤمن عليها بخطأ المؤمن له أو بخطأ تابعيه البريين، ما لم يثبت المؤمن أن الضرر ناشئ عن خطأ عمدي، أو عن خطأ جسيم صادر من المؤمن له أو عن إهماله في بذل العناية المعقولة اللازمة لحماية الأشياء المؤمن عليها.
2- مع عدم الإخلال بحكم الفقرة (2) من المادة (الثلاثين بعد الثلاثمائة), يسأل المؤمن عن الضرر المادي الذي يلحق الأشياء المؤمن عليها بخطأ الربان أو البحارة.
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 307 explained in plain English
This article deals with the insurer's liability for damage arising from human error:
Fault of the insured or his shore-based subordinates (Paragraph 1): the insurer is liable for physical damage to the things insured caused by their fault, unless the insurer proves that the damage arises from:
- intentional fault, or
- gross fault by the insured, or
- his negligence in exercising the reasonable care needed to protect the things insured.
The rule is therefore cover, and the burden of proving the exception is on the insurer.
Fault of the master or crew (Paragraph 2): the insurer is liable for physical damage to the things insured caused by their fault, without prejudice to Paragraph 2 of Article 330, which provides that the insurer is not liable for damage arising from intentional faults by the master. The master's ordinary faults are therefore covered, but intentional ones are not.
Article 306 sets the scope of the insurer's liability in general, while Article 308 keeps the insurer liable where there is a necessity to change the route, the voyage or the ship. To assess a particular case, it is advisable to consult a lawyer specialized in insurance and maritime cases.
Practical example
An employee of an import company at the port made a mistake in arranging insured containers and they were damaged. The insurer is liable for the damage unless it proves that it arises from intentional or gross fault or negligence in exercising reasonable care. And if the goods were damaged by an unintentional fault of the ship's master, they would be covered in the same way.
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 307 of the Saudi Commercial Maritime Law
Does maritime insurance cover damage caused by my own fault?
The insurer is liable for damage resulting from the fault of the insured or his shore-based subordinates, unless it proves it arises from intentional or gross fault or negligence in exercising reasonable care to protect the things insured.
Does the insurance cover the master's errors?
The insurer is liable for damage resulting from the fault of the master or crew, without prejudice to Paragraph 2 of Article 330, which excludes the master's intentional faults.
Articles this article refers to
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.