Article 355 of the Saudi Commercial Maritime Law
المادة 355 من النظام البحري التجاري · الفصل الخامس: التأمين من المسؤولية
The article provides that liability insurance for damage to third parties caused by the ship under Article 331 has effect only if the sum insured on the ship is not enough to compensate for the damage.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا كان محل التأمين من المسؤولية تعويض الضرر الذي يصيب الغير بفعل السفينة وفقاً لما نصت عليه المادة (الحادية والثلاثين بعد الثلاثمائة), فلا ينتج التأمين أثراً إلا إذا كان مبلغ التأمين على السفينة لا يكفي لتعويض الضرر.
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 355 explained in plain English
This article regulates the relationship between two types of insurance:
- Insurance on the ship, which, under Article 331 and excluding damage to persons, obliges the insurer to pay the compensation the insured owes to third parties where the insured ship collides with another ship or strikes a fixed, moving or floating object.
- Liability insurance, whose subject is compensating the same damage caused to third parties by the ship.
The article provides that this liability insurance has effect only if the sum insured on the ship is not enough to compensate for the damage.
So liability insurance here is supplementary: the sum insured on the ship is exhausted first, and if it is not enough to cover the damage, the liability insurance comes in to cover what exceeds it.
Article 354 provides that the insurer in liability insurance is bound only if the injured third party directs an amicable or judicial claim to the insured, while Article 356 regulates the case of several liability insurances, where each insurer is bound for each incident within the limit of his policy, provided that the total the insured obtains does not exceed the value of the damage. To assess whether cover is sufficient, it is advisable to consult a lawyer specialized in insurance.
Practical example
An insured ship collides with a quay and causes damage worth SAR 15,000,000; the sum insured on the ship is SAR 10,000,000, and the owner has separate liability insurance. Payment is made first from the ship's insurance, then the liability insurance covers what the ship's sum insured does not suffice for.
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 355 of the Saudi Commercial Maritime Law
When does liability insurance for damage the ship causes to third parties operate?
It has effect only if the sum insured on the ship is not enough to compensate for the damage.
What damage is meant?
Damage caused to third parties by the ship under Article 331, that is, collision or striking compensation owed to third parties, excluding damage to persons.
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.