Article 340 of the Saudi Commercial Maritime Law
المادة 340 من النظام البحري التجاري · الفصل الثالث: التأمين على الأجرة
The article limits insurance on a ship's freight whose being due is not stipulated to 60% of it unless otherwise agreed, and limits the cover to its share in general average and its recovery on abandonment, on conditions.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا عُقد التأمين على أجرة السفينة, ولم يشترط استحقاقها في جميع الأحوال, فلا يشمل التأمين إلاَّ (60%) منها, ما لم يتفق على غير ذلك.
2- لا يضمن المؤمِّن في التأمين على الأجرة في حدود مبلغ التأمين إلا حصة هذه الأجرة في الخسارة المشتركة واستردادها في حالة ترك السفينة بسبب خطر مؤمن عنه بشرط أن يثبت في الأحوال المذكورة في الفقرتين (ب) و(د) من المادة (السادسة والثلاثين بعد الثلاثمائة) أنه لم يتمكن من ترحيل البضائع إلى مكان الوصول.
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 340 explained in plain English
This article regulates insurance on the ship's freight, that is, the freight the operator expects to collect for carriage:
Percentage covered (paragraph 1): if insurance is made on the freight and its being due in all cases is not stipulated, the insurance covers only 60% of it, unless otherwise agreed.
Scope of cover (paragraph 2): within the insured sum, the insurer guarantees only:
- The freight's share in general average, and
- Its recovery where the ship is abandoned because of an insured risk.
Provided that the insured proves, in the two cases mentioned in paragraphs (b) and (d) of Article 336, that he was unable to forward the goods to the place of arrival. Those two cases are: that the costs of repairing or salvaging the ship are equal to at least three quarters of its value stated in the policy, or that it suffers damage that cannot be repaired, or repair is impossible because the means are not available where it is, unless it can be towed to a place where repair is possible.
Article 339 extends the provisions on ship insurance to periods when it is in ports and docks. To assess cover, it is advisable to consult a lawyer who specializes in insurance.
Practical example
A ship operator insures the freight of a voyage worth SAR 1,000,000 without stipulating that it is due in all cases, and no other percentage is agreed. The insurance covers only SAR 600,000. If he abandons the ship because of irreparable damage, he must prove that he could not forward the goods to the place of arrival in order to recover the freight.
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 340 of the Saudi Commercial Maritime Law
How much of the ship's freight does insurance cover?
If the freight's being due in all cases is not stipulated, the insurance covers only 60% of it unless otherwise agreed.
What does the insurer guarantee in freight insurance?
Within the insured sum, the freight's share in general average and its recovery where the ship is abandoned because of an insured risk, on condition that the insured proves he could not forward the goods in the cases of paragraphs (b) and (d) of Article 336.
Articles this article refers to
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.