Article 316 of the Saudi Commercial Maritime Law
المادة 316 من النظام البحري التجاري · الفصل الأول: الأحكام العامة
The article requires the insured, when the insured risk occurs, to do what he can to save the insured things and to take steps to preserve the insurer's right of recourse against third parties, and makes him liable for neglect.
Official text (Arabic)
This article has not been amended since the law was issued.
على المؤمن له عند وقوع الخطر المؤمن ضده أن يبذل كل ما في استطاعته لإنقاذ الأشياء المؤمن عليها، وعليه أن يتخذ جميع الإجراءات للمحافظة على حق المؤمن في الرجوع على الغير المسؤول عن الضرر, ويكون المؤمن له مسؤولاً عن الضرر الذي يلحق المؤمِّن بسبب إهمال تنفيذ هذه الالتزامات.
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 316 explained in plain English
This article sets out what the insured must do after the insured risk occurs, since insurance does not relieve him of acting:
- Rescue: he must do everything in his power to save the insured things.
- Preserving the right of recourse: he must take all steps to preserve the insurer's right of recourse against the third party responsible for the damage. If the damage was caused by another person, such as a carrier or another ship, the insured must not act in a way that loses the insurer's right of recourse against him.
The consequence: the insured is liable for the damage that the insurer suffers because of neglect in carrying out these obligations.
The article does not specify in detail the steps required, which vary with the circumstances of each accident. Article 315 allows the insurer to terminate the contract for non-payment of the premium after a thirty-day period from formal notice, while Article 317 provides that damage is settled by compensation unless the insured chooses to abandon the thing to the insurer in the cases where agreement or the Law allows abandonment. Someone who has suffered an insured accident can consult a lawyer who specializes in insurance and maritime cases.
Practical example
An insured shipment arrives at the port of Jeddah and is found damaged because of the carrier's fault. Its owner must do what he can to save what can be saved, and take the steps that preserve the insurer's right of recourse against the carrier. If he neglects this and the right of recourse is lost, he is liable for the damage the insurer suffers.
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 316 of the Saudi Commercial Maritime Law
What must I do if the insured accident occurs?
You must do everything in your power to save the insured things, and take all steps to preserve the insurer's right of recourse against the third party responsible for the damage.
What if I neglect these obligations?
The insured is liable for the damage the insurer suffers because of neglect in carrying them out.
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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
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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
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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.