Article 337 of the Saudi Commercial Maritime Law
المادة 337 من النظام البحري التجاري · الفصل الثاني: التأمين على السفينة
The article provides that insurances on several ships of one ship operator apply as if each ship belonged to a different operator, and that the operator's goods and property are treated, for the ship's insurer, as owned by others.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تسري التأمينات المعقودة على عدة سفن تابعة لمجهز واحد, كما لو كانت كل سفينة منها تابعة لمجهز مختلف.
2- تعد البضائع وغيرها من الأموال المملوكة للمجهز بالنسبة إلى المؤمن على السفينة كما لو كانت مملوكة للغير.
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 337 explained in plain English
This article deals with the case of the ship operator who owns or operates several ships; under Article 1, the operator is the person who operates the ship for his own account as owner, charterer or manager of the co-ownership.
Paragraph 1: each ship stands alone: insurances made on several ships belonging to one operator apply as if each ship belonged to a different operator. If two ships of the same operator collide, each is treated in the insurance as if it belonged to another operator.
Paragraph 2: the operator's property on the ship: the goods and other property owned by the operator are treated, in relation to the ship's insurer, as if they were owned by others. If the operator's own goods carried on his ship are damaged, they are treated, in their relationship with the ship's insurer, as goods of another person.
Article 336 sets out the cases in which the ship may be abandoned to the insurer, while Article 338 regulates the continuation of insurance when ownership of the ship is transferred or it is let without being equipped. To assess the effect of this on a particular policy, it is advisable to consult a lawyer who specializes in insurance.
Practical example
A company in Jeddah owns two insured ships, and one collides with the other in the port. The insurances apply to the two ships as if each belonged to a different operator, even though they belong to the same company.
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 337 of the Saudi Commercial Maritime Law
How are one owner's ships treated in insurance?
Insurances made on several ships belonging to one operator apply as if each ship belonged to a different operator.
What about the operator's goods carried on his ship?
They are treated, in relation to the ship's insurer, as if they were owned by others.
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.