Article 312 of the Saudi Commercial Maritime Law
المادة 312 من النظام البحري التجاري · الفصل الأول: الأحكام العامة
The article lists what the insurer is not liable for: inherent defect and poor packing, ordinary shortage, fines, confiscation, smuggling and the like, detention compensation and its bail, and non-physical losses such as delay and price differences.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يسأل المؤمِّن عما يأتي:
1- الأضرار المادية الناشئة عن عيب ذاتي في الشيء المؤمن عليه, أو عدم كفاية تغليفه أو ربطه، وذلك مع مراعاة ما نصت عليه الفقرة (1) من المادة (الثلاثين بعد الثلاثمائة) من النظام.
2- النقص العادي الذي يحدث للبضائع أثناء الطريق.
3- الأضرار المادية الناشئة عن الغرامات والمصادرة والوضع تحت الحراسة والاستيلاء والتدابير الصحية والتعقيم واختراق الحصار وأعمال التهريب وممارسة تجارة ممنوعة.
4- التعويضات المستحقة بسبب الحجز والكفالة المقدمة لرفع الحجز.
5- الأضرار التي لا تعد تلفاً ماديًّا يلحق مباشرة بالأشياء المؤمن عليها, كامتناع البحارة أو بعضهم عن العمل أو تأخيرهم, وفروق الأسعار والعقبات التي تؤثر في العملية التجارية التي يجريها المؤمن له.
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 312 explained in plain English
This article sets out what the insurer is not liable for:
- Inherent defect and poor packing: physical damage arising from an inherent defect in the thing insured, or inadequate packing or lashing, subject to Paragraph 1 of Article 330, which provides that the insurer is not liable for damage from natural wear of the ship's hull or its inherent defect unless the defect is hidden.
- Ordinary shortage that occurs to goods on the way.
- Damage arising from prohibited measures or acts: fines, confiscation, placing under guard, seizure, health measures, sterilization, breaching a blockade, smuggling, and engaging in prohibited trade.
- Compensation for attachment and the bail given to lift it.
- Non-physical damage: anything that is not physical damage directly affecting the things insured, such as the refusal of the sailors or some of them to work or their delay, price differences, and obstacles affecting the insured's commercial operation.
Maritime insurance thus covers direct physical damage from an insured risk, not commercial losses. Article 311 considers damage maritime where its cause cannot be known, and Article 313 allows agreement to exempt the insurer within limits set by the contract. To review the cover of your policy, it is advisable to consult a lawyer specialized in insurance.
Practical example
A company in Riyadh imported fruit insured at sea, and it arrived late and its price in the market fell, and part of it was also spoiled by poor packing. The insurer is not liable for price differences and delay, nor for damage arising from inadequate packing.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 312 of the Saudi Commercial Maritime Law
Does maritime insurance cover damage to goods from poor packing?
The insurer is not liable for physical damage arising from an inherent defect in the thing insured or inadequate packing or lashing.
Does maritime insurance compensate for delay of a shipment or a fall in its price?
No. Damage that is not physical damage directly affecting the things insured, such as delay and price differences, is excluded.
Does insurance cover confiscation of goods?
The insurer is not liable for physical damage arising from fines, confiscation, placing under guard, seizure, smuggling and the like.
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.