Article 352 of the Saudi Commercial Maritime Law
المادة 352 من النظام البحري التجاري · الفصل الرابع: التأمين على البضائع
The article allows the insurer, on breach of Article 351's obligations, to demand immediate termination with compensation equal to the premiums of unnotified shipments, and to recover what he paid after the first willful breach where there is bad faith.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا خالف المؤمن له الالتزامات المنصوص عليها في المادة (الحادية والخمسين بعد الثلاثمائة), جاز للمؤمِّن أن يطالب بفسخ العقد فوراً مع أداء تعويض يعادل أقساط التأمين الخاصة بالشحنات التي لم يُبلغ بها.
2- إذا ثبت سوء نية المؤمن له، جاز للمؤمن أن يسترد ما دفعه عن الحوادث الخاصة بالشحنات اللاحقة على وقوع أول مخالفة عمدية من جانب المؤمن له.
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 352 explained in plain English
This article sets the consequence of breaching the notification obligations in the floating policy provided for in Article 351, namely notifying the insurer of all shipments made for the insured's account or in performance of contracts obliging him to insure, and of shipments made for a third party who entrusted him with insuring them.
On breach (paragraph 1): the insurer may:
- Demand termination of the contract immediately, with
- payment of compensation equal to the insurance premiums for the shipments he was not notified of.
Where bad faith is proven (paragraph 2): the insurer may also recover what he paid for incidents concerning shipments after the first willful breach by the insured.
Note the difference between the paragraphs: termination and compensation require only that the breach occurred, while recovery requires proof of bad faith and is limited to incidents concerning shipments after the first willful breach.
Article 353 requires the insured to notify the insurer of damage to goods within fifteen days of receiving them. Anyone facing a claim for termination or recovery should consult a lawyer specialized in insurance.
Practical example
An insurance company finds that its customer under a floating policy did not notify it of a number of his shipments. It may demand immediate termination of the contract with compensation equal to the premiums on those shipments. If it is proven that the customer did so deliberately in bad faith, it may recover what it paid for incidents on shipments after the first willful breach.
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 352 of the Saudi Commercial Maritime Law
What happens if I do not notify some shipments under a floating policy?
The insurer may demand immediate termination of the contract and payment of compensation equal to the insurance premiums for the shipments he was not notified of.
Can the insurance company recover the compensation it paid?
If the insured's bad faith is proven, the insurer may recover what he paid for incidents concerning shipments after the first willful breach.
Articles this article refers to
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دون إخلال بالأحكام الواردة في نظام مراقبة شركات التأمين التعاوني, تسري أحكام هذا الباب على عقد التأمين الذي يكون موضوعه تغطية الأخطار البحرية.
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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
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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.

