Article 326 of the Saudi Commercial Maritime Law
المادة 326 من النظام البحري التجاري · الفصل الثاني: التأمين على السفينة
The article allows a ship insurance contract to cover a single voyage, several successive voyages or a limited period, and to be made on the ship while under construction.
Official text (Arabic)
This article has not been amended since the law was issued.
يكون عقد التأمين على السفينة لرحلة واحدة، أو لعدة رحلات متعاقبة، أو لمدة محدودة, ويجوز أن يكون التأمين على السفينة وهي في طور البناء.
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 326 explained in plain English
This article sets out the forms of ship insurance contract as to time scope. It may be:
- For a single voyage, or
- For several successive voyages, or
- For a limited period.
The insurance may also be on the ship while it is under construction, so it is not necessary for the ship to be complete and to have started navigation.
The choice among these forms depends on the nature of the shipowner's business. Someone who operates his ship on regular voyages may find insurance for a limited period suitable, while someone making a particular voyage may be content with insurance for that voyage.
Each form has provisions showing when the insurer's cover starts and when it ends. Article 327 regulates voyage insurance: cover runs from the start of loading the goods until unloading is finished, without exceeding fifteen days from the ship's arrival and the master's declaration that it is ready to unload, and if the ship is empty it runs from the time it sets out until it anchors at the intended place. Article 325 sets the period after which claims arising from the insurance contract are not heard at two years.
Practical example
A company in Dammam is building a new ship and plans to operate it later on regular voyages. It may insure the ship while it is under construction, and afterwards conclude insurance for a limited period or for several successive voyages.
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 326 of the Saudi Commercial Maritime Law
What types of ship insurance are there?
A ship insurance contract may be for a single voyage, for several successive voyages, or for a limited period.
Can a ship that is not yet completed be insured?
Yes. The insurance may be on the ship while it is under construction.
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.