Article 335 of the Saudi Commercial Maritime Law
المادة 335 من النظام البحري التجاري · الفصل الثاني: التأمين على السفينة
The article prevents disputing the ship's value agreed in the insurance contract except for contribution to general average or salvage expenses, and states what the value includes and the effect of separate insurance on accessories.
Official text (Arabic)
This article has not been amended since the law was issued.
1- مع عدم الإخلال بأحكام المادة (الثانية بعد الثلاثمائة), إذا اتفق في عقد التأمين على قيمة السفينة فلا تجوز المنازعة فيها إلاَّ في حالة الإسهام في الخسارة المشتركة أو مصروفات الإنقاذ البحري وفقاً للمادة (التاسعة عشرة بعد الثلاثمائة) من النظام.
2- تشمل القيمة المتفق عليها جسم السفينة والآلات المحركة لها, والملحقات المملوكة للمؤمن له, بما فيها المؤن ومصروفات التجهيز للسفر.
3- كل تأمين أيًّا كان تاريخه يعقد على الملحقات المملوكة للمؤمن له وحدها يترتب عليه في حالة الهلاك الكلي أو الترك تخفيض قيمة السفينة المتفق عليها بما يعادل قيمة هذه الملحقات.
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 335 explained in plain English
This article regulates the case where the ship's value is agreed in the insurance contract.
No dispute allowed (paragraph 1): if the ship's value is agreed, it may not be disputed, except in the case of contribution to general average or maritime salvage expenses under Article 319. This is without prejudice to Article 302, which allows the insurer to seek annulment of the contract if the insured sum exceeds the value of the insured things and the fraud of the insured or his agent is proven, treats the contract as valid up to the value if there is no fraud, and limits the insurer's obligation to the insured sum if it is less than the true value.
What the value includes (paragraph 2):
- The ship's hull.
- Its propelling machinery.
- The accessories owned by the insured, including stores and the expenses of fitting out for the voyage.
Insurance of accessories alone (paragraph 3): any insurance, whatever its date, made on the insured's accessories alone has the effect, in the case of total loss or abandonment, of reducing the agreed value of the ship by the value of those accessories.
Article 336 sets out the cases in which the ship may be abandoned to the insurer. To assess the effect of an agreed value, it is advisable to consult a lawyer who specializes in insurance.
Practical example
A company agrees with its insurer that its ship's value is SAR 20,000,000, including its hull, machinery and accessories, and then insures accessories worth SAR 1,000,000 by a separate policy. If the ship is totally lost, its agreed value under the first policy is reduced to SAR 19,000,000.
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 335 of the Saudi Commercial Maritime Law
Can the insurance company dispute the agreed value of the ship?
It may not be disputed except in the case of contribution to general average or maritime salvage expenses under Article 319, without prejudice to Article 302.
What does the ship's agreed value include?
The ship's hull, its propelling machinery and the accessories owned by the insured, including stores and the expenses of fitting out for the voyage.
What is the effect of separate insurance on accessories?
In the case of total loss or abandonment, it reduces the ship's agreed value by the value of those accessories.
Articles this article refers to
- Article 302
The article allows the insurer to annul the contract if the sum insured exceeds the value of the things insured and fraud is proved, otherwise the contract is valid up to their value, and limits the insurer to the sum insured if it is lower.
1- للمؤمن طلب إبطال العقد, إذا كان مبلغ التأمين يزيد على قيمة الأشياء المؤمن عليها، وثبت التدليس من جانب المؤمن له أو وكيله. وفي هذه الحالة يكون للجهة القضائية
- Article 319
The article 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.
على المؤمِّن أن يدفع حصة الأشياء المؤمن عليها في الخسارة المشتركة ومصروفات الإنقاذ, وذلك بنسبة قيمة الأشياء المؤمن عليها بعد خصم الخسارة الخاصة التي يتحملها الم
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.