Article 350 of the Saudi Commercial Maritime Law
المادة 350 من النظام البحري التجاري · الفصل الرابع: التأمين على البضائع
The article requires a floating policy to include the terms binding both parties, the maximum payable per shipment and the premiums, with goods, voyages and ships specified in endorsements for each shipment.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا أُبرِم التأمين بوثيقة عائمة وجب أن تشتمل على الشروط التي يلتزم بمقتضاها كل من المؤمِّن والمؤمن له، والحد الأعلى للمبلغ الذي يتعهد المؤمن بدفعه عن كل شحنة, وأقساط التأمين التي يقوم المؤمن له بدفعها. أما البضائع المؤمن عليها والرحلات والسفن وغير ذلك من البيانات فتعين بملاحق لكل شحنة على حدة.
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 350 explained in plain English
This article regulates the content of the floating policy, dividing it into two parts:
What the policy itself must include:
- The terms under which both the insurer and the insured are bound.
- The maximum amount the insurer undertakes to pay per shipment.
- The insurance premiums the insured pays.
What is specified in endorsements: the insured goods, the voyages, the ships and other particulars are specified in endorsements for each shipment separately.
This arrangement shows that the floating policy is a general framework that sets the terms and limits of the relationship, to which the details of each shipment are then added in an endorsement of its own. So the insured does not need to conclude a new contract for each shipment; the endorsement is enough.
Article 349 sets the cases in which goods may be abandoned to the insurer, while Article 351 requires the insured under a floating policy to notify the insurer of shipments made for his account or in performance of purchase or sale contracts obliging him to insure, and of shipments made for third parties on certain terms. To draft a floating policy it is advisable to consult a lawyer specialized in insurance.
Practical example
An import company in Jeddah concludes a floating policy setting the insurance terms, the maximum per shipment and the premiums. Each time it ships new goods, an endorsement is added specifying the goods, voyage and ship for that shipment.
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 350 of the Saudi Commercial Maritime Law
What must a floating policy include?
The terms binding both the insurer and the insured, the maximum amount the insurer undertakes to pay per shipment, and the insurance premiums.
How are the details of each shipment specified?
The insured goods, voyages, ships and other particulars are specified in endorsements for each shipment separately.
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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.