Article 351 of the Saudi Commercial Maritime Law
المادة 351 من النظام البحري التجاري · الفصل الرابع: التأمين على البضائع
The article requires the insured under a floating policy to notify the insurer of his own shipments and third-party shipments entrusted to him, with the insurer bound to accept them, and sets when cover starts for each kind.
Official text (Arabic)
This article has not been amended since the law was issued.
يلتزم المؤمن له في وثيقة التأمين العائمة بإبلاغ المؤمِّن بالشحنات الآتي ذكرها, مما يلتزم المؤمِّن بقبول التأمين عليها:
1- جميع الشحنات التي تتم لحساب المؤمن له, أو تنفيذاً لعقود شراء أو بيع تلزمه بإجراء التأمين، ويشمل التأمين هذه الشحنات تلقائيًّا متى تعرضت للخطر المؤمن عنه بشرط أن يقدم المؤمن له إبلاغاً عنها في الميعاد المنصوص عليه في وثيقة التأمين.
2- جميع الشحنات التي تتم لحساب الغير الذي عهد إلى المؤمن له بإجراء التأمين عليها, بشرط أن تكون للمؤمن له مصلحة في الشحنة بوصفه وكيلاً بالعمولة أو أمينًا على البضائع أو غير ذلك, ولا يشمل التأمين هذه الشحنات إلا من وقت إبلاغ المؤمِّن بها.
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 351 explained in plain English
This article identifies the shipments the insured must notify the insurer of under a floating policy, and for which the insurer is bound to accept insurance:
1. The insured's own shipments:
- All shipments made for his account, or in performance of purchase or sale contracts obliging him to arrange insurance.
- Insurance covers them automatically once they are exposed to the insured risk, provided that the insured gives notice of them by the date stated in the policy.
2. Third-party shipments:
- All shipments made for the account of a third party who entrusted the insured with arranging their insurance.
- Provided that the insured has an interest in the shipment as a commission agent, a custodian of the goods or otherwise.
- Insurance covers them only from the time the insurer is notified of them.
The essential difference is in when cover starts: the insured's own shipments are covered automatically provided notice is given on time, while third-party shipments are covered only from the time of notification. Article 350 sets what a floating policy must contain, while Article 352 sets the consequence of breaching these obligations.
Practical example
A company in Dammam acts as a commission agent for a foreign company and holds a floating policy. The company's own shipments are covered automatically once exposed to the risk, provided the insurer is notified by the set date. The foreign company's shipment, whose insurance it was entrusted with, is covered only from the time the insurer is notified of it.
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 351 of the Saudi Commercial Maritime Law
Which shipments must be notified under a floating policy?
All shipments made for the insured's account or in performance of purchase or sale contracts obliging him to insure, and all shipments for the account of a third party who entrusted him with insuring them where he has an interest in them.
When does cover begin for a shipment under a floating policy?
The insured's own shipments are covered automatically once exposed to the risk provided notice is given by the date in the policy, and third-party shipments are covered only from the time the insurer is notified.
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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.