Article 315 of the Saudi Commercial Maritime Law
المادة 315 من النظام البحري التجاري · الفصل الأول: الأحكام العامة
The article allows the insurer to terminate the contract for non-payment of the premium; termination takes effect only 30 days after formal notice and notification, and does not bind a good-faith third party to whom the policy passed.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا لم يدفع المؤمن له قسط التأمين المستحق جاز للمؤمِّن أن يفسخ العقد، ولا ينتج أثر الفسخ إلاَّ بعد انقضاء ثلاثين يوماً على إعذار المؤمن له بالوفاء, وإبلاغه بفسخ عقد التأمين, ويجوز أن يقع الإعذار بالبريد المسجل أو بأي طريقة أخرى يتحقق بها العلم في آخر موطن للمؤمن له يعلمه المؤمِّن، ويجوز كذلك أن يقع الإعذار بالوفاء والإبلاغ بفسخ عقد التأمين بإجراء واحد.
2- لا يسري أثر الفسخ على الغير حسن النية الذي انتقلت إليه ملكية وثيقة التأمين قبل وقوع أي حادث وقبل الإبلاغ بالفسخ.
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 315 explained in plain English
This article regulates the effect of non-payment of the insurance premium:
The right to terminate and its conditions (paragraph 1):
- If the insured does not pay the premium due, the insurer may terminate the contract.
- But termination takes effect only after thirty days have passed from formally notifying the insured to pay and notifying him of the termination.
- Method of formal notice: by registered mail or by any other means that establishes knowledge, at the last domicile of the insured known to the insurer.
- The formal notice to pay and the notification of termination may be given in a single step.
Protection of third parties (paragraph 2): the effect of termination does not apply to a good-faith third party to whom ownership of the insurance policy passed before any accident occurred and before notification of the termination. This matters for someone who bought goods and received their policy, so that he is not surprised by a termination he did not know of.
Termination therefore does not take effect immediately upon the formal notice, but after the thirty days have passed. Article 314 makes payment of the premium and expenses at the agreed place and time the first obligation of the insured. Article 316 requires the insured, when the risk occurs, to do what he can to save the insured things.
Practical example
A company in Dammam is late in paying the insurance premium on its ship, so the insurer sends it, by registered mail, a formal notice to pay and a notification of termination in a single letter. Termination takes effect only after thirty days have passed from that.
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 315 of the Saudi Commercial Maritime Law
Is marine insurance canceled immediately if I am late in paying?
No. The insurer may terminate the contract, but termination takes effect only after thirty days have passed from formally notifying the insured to pay and notifying him of the termination.
How is the formal notice given?
By registered mail or by any other means that establishes knowledge, at the last domicile of the insured known to the insurer; the formal notice and the notification of termination may be made in a single step.
Is someone to whom the policy passed affected by the termination?
The effect of termination does not apply to a good-faith third party to whom ownership of the policy passed before any accident occurred and before notification of the termination.
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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
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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.