Article 320 of the Saudi Commercial Maritime Law
المادة 320 من النظام البحري التجاري · الفصل الأول: الأحكام العامة
The article prohibits partial or conditional abandonment and withdrawing it without the insurer's consent; it makes abandonment transfer ownership and require full payment of the insured sum from the date it is declared, while allowing the insurer to refuse the transfer of ownership.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز أن يكون ترك الأشياء المؤمن عليها جزئيًّا أو معلقاً على شرط، ولا يجوز كذلك الرجوع فيه إلاَّ برضا المؤمن، ويترتب على الترك انتقال ملكية الأشياء المؤمن عليها إلى المؤمِّن، والتزامه بدفع مبلغ التأمين كاملاً, ويُحدِث انتقال الملكية أثره بين الطرفين من تاريخ إعلان المؤمن له رغبته في الترك إلى المؤمِّن. ويجوز للمؤمِّن أن يرفض انتقال ملكية الأشياء المؤمن عليها إليه، وذلك دون إخلال بالتزامه بدفع مبلغ التأمين كاملاً.
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 320 explained in plain English
This article regulates the conditions of abandonment and its effects.
The conditions:
- Abandonment may not be partial: the insured either abandons the whole thing or does not abandon.
- It may not be subject to a condition.
- It may not be withdrawn except with the insurer's consent.
The effects:
- Transfer of ownership of the insured things to the insurer.
- The insurer's obligation to pay the full insured sum.
- The transfer of ownership takes effect between the parties from the date the insured declares his wish to abandon to the insurer.
The insurer's right to refuse: the insurer may refuse the transfer of ownership of the things to him, but this is without prejudice to his obligation to pay the full insured sum. Refusing ownership does not relieve him of payment.
Article 319 requires the insurer to pay the insured things' share in general average and salvage expenses, and Article 321 sets the method and time limit for notifying the wish to abandon. Before deciding to abandon, it is advisable to consult a lawyer who specializes in insurance.
Practical example
An insured ship sinks, and its owner declares to the insurer his wish to abandon it. Ownership of the ship passes to the insurer from the date of his declaration, and the insurer must pay the full insured sum. The insurer may refuse the transfer of ownership to him, but he remains bound to pay the full insured sum.
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 320 of the Saudi Commercial Maritime Law
May part of the insured thing be abandoned?
No. Abandonment may not be partial or subject to a condition.
What follows from abandonment?
Ownership of the insured things passes to the insurer and the insurer must pay the full insured sum; the transfer of ownership takes effect from the date the insured declares his wish to abandon.
Can the insurer refuse ownership?
Yes. He may refuse the transfer of ownership to him, without prejudice to his obligation to pay the full insured sum.
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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.