Article 332 of the Saudi Commercial Maritime Law
المادة 332 من النظام البحري التجاري · الفصل الثاني: التأمين على السفينة
The article makes the premium fully due once the risks begin to run in voyage insurance; in insurance for a period it is fully due on a loss or abandonment the insurer bears, and otherwise only for the period up to the accident.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا كان التأمين على السفينة لرحلة واحدة أو لعدة رحلات متعاقبة استحق المؤمن قسط التأمين كاملاً بمجرد بدء سريان الأخطار المؤمن عنها.
2- إذا كان التأمين لمدة معينة استحق المؤمِّن القسط عن كل مدة التأمين إذا هلكت السفينة كليًّا, أو قرر المؤمن له تركها للمؤمن وكان الهلاك أو الترك مما يقع على عاتق المؤمِّن. أما إذا كان الهلاك أو الترك مما لا يقع على عاتق المؤمِّن, فلا يستحق من القسط إلا المقدار الذي يقابل المدة بين تاريخ بدء سريان الأخطار وتاريخ وقوع الحادث الذي أدى إلى هلاك السفينة أو إعلان تركها.
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 332 explained in plain English
This article sets out when the insurer is entitled to the ship insurance premium and in what amount:
Insurance for a single voyage or several successive voyages (paragraph 1): the insurer is entitled to the full premium as soon as the insured risks begin to run.
Insurance for a specified period (paragraph 2):
- If the ship is totally lost or the insured decides to abandon it to the insurer, and the loss or abandonment is something borne by the insurer: the insurer is entitled to the premium for the whole insurance period.
- If the loss or abandonment is not borne by the insurer: he is entitled only to the part of the premium corresponding to the period between the date the risks began to run and the date of the accident that led to the loss or the declaration of abandonment.
The logic is that an insurer who pays the insured sum because of the loss is entitled to the full premium, whereas if the insurer does not bear the consequences of the loss, he takes only the premium for the period in which the risk actually existed.
Article 331 requires the insurer to pay third-party compensation in collision and striking, apart from damage to persons, and Article 333 provides that the insurer guarantees the damage from each accident within the limit of the insured sum even if accidents are multiple.
Practical example
A company insures its ship for one year, and it sinks after four months because of a risk the insurance does not cover. The insurer is entitled only to the premium for the four months between the start of the risks and the date of the accident. Had it sunk because of an insured risk, he would have been entitled to the premium for the whole year.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 332 of the Saudi Commercial Maritime Law
When is the ship insurance premium due for a voyage?
The insurer is entitled to the full premium as soon as the insured risks begin to run.
Do I get back part of the premium if the ship is lost under insurance for a period?
If the loss or abandonment is not borne by the insurer, he is entitled only to the premium for the period between the start of the risks and the date of the accident; if it is borne by him, he is entitled to the premium for the whole period.
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.