Article 336 of the Saudi Commercial Maritime Law
المادة 336 من النظام البحري التجاري · الفصل الثاني: التأمين على السفينة
The article lists the cases in which the ship may be abandoned to the insurer: total loss, repair or salvage costs of three quarters of its value, no news for three months, irreparable damage, and war cases.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يجوز للمؤمن له ترك السفينة للمؤمن في الحالات الآتية:
أ- إذا هلكت كليًّا.
ب- إذا كانت نفقات إصلاحها أو إنقاذها تعادل على الأقل ثلاثة أرباع قيمتها المبينة في وثيقة التأمين.
ج- إذا انقطعت أخبارها مدة ثلاثة أشهر بعد وصول آخر نبأ عنها، وافتُرِضَ هلاكها في تاريخ وصول ذلك النبأ.
د- إذا أصيبت بتلف لا يمكن إصلاحه, أو تعذر إصلاحه بسبب عدم توافر الوسائل المادية اللازمة لذلك في المكان الذي هي فيه، إلاَّ إذا كان من المستطاع قطرها إلى مكان آخر يكون الإصلاح فيه ممكناً.
2- إذا شمل التأمين أخطار الحرب جاز للمؤمن له استعمال حقه في ترك السفينة في حالة أسرها أو احتجازها أو إيقافها بناء على أمر من السلطات العامة، وذلك إذا لم يتمكن المؤمن له من استردادها خلال أربعة أشهر من تاريخ قيامه بإبلاغ المؤمِّن بوقوع الحادث.
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 336 explained in plain English
This article sets out the cases in which the insured may abandon the ship to the insurer:
Paragraph 1:
- Total loss of the ship.
- If the costs of repairing or salvaging it are equal to at least three quarters of its value stated in the insurance policy.
- If no news of it is received for three months after the last news of it arrived, and it is presumed lost on the date that news arrived.
- If it suffers damage that cannot be repaired, or repair is impossible because the necessary physical means are not available where it is, unless it can be towed to another place where repair is possible.
Paragraph 2: war risks: if the insurance covers war risks, the insured may abandon the ship in the case of its capture, detention or arrest by order of the public authorities, if he could not recover it within four months of the date he notified the insurer of the accident.
Article 335 regulates the effect of agreeing on the ship's value in the insurance contract, while Article 337 provides that insurances on several ships of one operator apply as if each ship belonged to a different operator. To assess whether a case of abandonment exists, it is advisable to consult a lawyer who specializes in insurance and maritime cases.
Practical example
An insured ship valued at SAR 8,000,000 in the policy suffers serious damage, and the cost of repairing it is estimated at SAR 6,500,000. Because the costs are equal to at least three quarters of its value stated in the policy, its owner may abandon it to the insurer.
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 336 of the Saudi Commercial Maritime Law
When may a ship be abandoned to the insurance company?
On its total loss; or if the costs of repairing or salvaging it are equal to at least three quarters of its value stated in the policy; or if no news of it is received for three months; or if it suffers damage that cannot be repaired or repair is impossible and it cannot be towed to a place where it is possible.
What if the ship's news is cut off?
If no news of it is received for three months after the last news arrived, abandonment is permitted and it is presumed lost on the date that news arrived.
Can I abandon the ship if the authorities detain it?
If the insurance covers war risks, abandonment is permitted in the case of its capture, detention or arrest by order of the public authorities, if the insured could not recover it within four months of notifying the insurer.
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.