Article 317 of the Saudi Commercial Maritime Law
المادة 317 من النظام البحري التجاري · الفصل الأول: الأحكام العامة
The article makes compensation the basic way of settling damage in marine insurance, unless the insured chooses to abandon the insured thing to the insurer in the cases agreement or the Law allows.
Official text (Arabic)
This article has not been amended since the law was issued.
تسوى الأضرار بطريقة التعويض, إلا إذا اختار المؤمن له ترك الشيء المؤمن عليه للمؤمِّن في الأحوال التي يجيز له الاتفاق أو النظام الترك.
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 317 explained in plain English
This article sets two ways of settling damage in marine insurance:
- Compensation: this is the rule. The insurer pays compensation for the damage suffered by the insured thing.
- Abandonment: this is the exception. Here the insured chooses to abandon the insured thing to the insurer.
Abandonment is not always available, only in the cases where agreement or the Law allows abandonment. The insured cannot resort to it unless a provision or an agreement permits it in the particular case.
The choice here belongs to the insured, who decides whether to claim compensation or resort to abandonment where abandonment is permitted.
This article does not set out the cases of abandonment or its effects. Article 316 requires the insured, when the risk occurs, to do what he can to save the insured things and to preserve the insurer's right of recourse against third parties, while Article 318 provides that the insurer is not obliged to repair or replace the insured things. To determine the most suitable method in a particular case, it is advisable to consult a lawyer who specializes in insurance and maritime cases.
Practical example
An insured ship is damaged in a maritime accident. The rule is that its owner claims compensation for the damage, but if its condition is one of the cases in which the Law or the policy allows abandonment, he may choose to abandon the ship to the insurer instead.
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 317 of the Saudi Commercial Maritime Law
How is damage settled in marine insurance?
By compensation, unless the insured chooses to abandon the insured thing to the insurer in the cases where agreement or the Law allows abandonment.
Can I always abandon the insured thing to the insurer?
No. Abandonment is allowed only in the cases where agreement or the Law permits it.
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.