Article 318 of the Saudi Commercial Maritime Law
المادة 318 من النظام البحري التجاري · الفصل الأول: الأحكام العامة
The article provides that the insurer is not obliged to repair or replace the insured things.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يُلزم المؤمِّن بإصلاح الأشياء المؤمن عليها أو استبدالها.
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 318 explained in plain English
This article answers a question that recurs when damage occurs: is the insurer obliged to repair the damaged ship or goods, or to replace them with others?
The answer in the text: the insurer is not obliged to repair or replace the insured things.
This is consistent with Article 317, which makes the settlement of damage by compensation the rule, unless the insured chooses abandonment in the cases agreement or the Law allows. The insured cannot demand that the insurer carry out the repair himself or provide a replacement.
Note that the article speaks of there being no obligation; it does not prevent the insurer from repairing or replacing if he chooses to or the parties agree to it. It only denies that this is a duty on him.
Article 319 requires the insurer to pay the insured things' share in general average and salvage expenses in proportion to their value, after deducting the particular loss borne by the insured, if any.
Practical example
Insured machinery is damaged while being shipped by sea to the port of Dammam, and its owner asks the insurance company to replace it with new machinery. The company is not obliged to replace or repair it, and the rule is that damage is settled by compensation.
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 318 of the Saudi Commercial Maritime Law
Is the insurance company obliged to repair my ship?
The insurer is not obliged to repair or replace the insured things.
How do I get my right then?
Article 317 provides that damage is settled by compensation, unless the insured chooses abandonment in the cases agreement or the Law allows.
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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.