Article 334 of the Saudi Commercial Maritime Law
المادة 334 من النظام البحري التجاري · الفصل الثاني: التأمين على السفينة
The article limits the insurer's obligation on settlement by compensation to the expenses of replacing parts and the repairs necessary to make the ship seaworthy, without compensation for loss of value, idleness or the like.
Official text (Arabic)
This article has not been amended since the law was issued.
في حالة تسوية التأمين بطريق التعويض يلتزم المؤمن بمصروفات استبدال القطع والإصلاحات الضرورية لجعل السفينة صالحة للملاحة, دون التعويضات الأخرى الناشئة عن انخفاض قيمة السفينة, أو عن تعطلها, أو عن أي سبب آخر.
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 334 explained in plain English
This article sets the extent of what the insurer is bound to when settling ship insurance by compensation:
What the compensation includes:
- The expenses of replacing parts.
- The expenses of necessary repairs.
The criterion is that these expenses are necessary to make the ship seaworthy.
What the compensation does not include:
- Compensation arising from the decrease in the ship's value.
- Compensation arising from its idleness.
- Compensation arising from any other cause.
If the ship is repaired and is seaworthy again but its market value has fallen because of the accident, or its owner lost profits during the period it was out of service, the insurer is not bound to compensate that under this article.
Article 333 provides that the insurer guarantees the damage from each accident within the insured sum even if accidents are multiple, while Article 335 regulates the effect of agreeing on the ship's value in the insurance contract. To assess compensation 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 an accident, and the cost of replacing parts and repairing it so that it is seaworthy again is SAR 2,000,000, and it stopped working for two months. The insurer is bound to the cost of replacement and repair, and is not bound to compensate the losses from the stoppage or the fall in the ship's value.
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 334 of the Saudi Commercial Maritime Law
What does the insurance pay when the ship is damaged?
On settlement by compensation, the insurer is bound to the expenses of replacing parts and the necessary repairs to make the ship seaworthy.
Does the insurance compensate for the ship's idleness?
No. The article excludes compensation arising from a decrease in the ship's value, its idleness or any other cause.
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.