Article 356 of the Saudi Commercial Maritime Law
المادة 356 من النظام البحري التجاري · الفصل الخامس: التأمين من المسؤولية
The article provides that where several liability insurances exist, each insurer is bound for each incident within the limit of his policy even if incidents multiply, provided the insured's total recovery does not exceed the damage.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا عقدت عدة تأمينات لضمان المسؤولية التزم كل مؤمِّن عن كل حادث على حدة في حدود المبلغ المبين في وثيقة التأمين الخاصة به وإن تعددت الحوادث, على ألاّ يتجاوز مجموع ما يحصل عليه المؤمن له قيمة الضرر الناشئ عن المسؤولية.
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 356 explained in plain English
This article deals with the case of concluding several insurances to cover liability:
- Each insurer's obligation: each insurer is bound for each incident separately, within the limit of the amount stated in his own policy.
- Multiple incidents: this obligation remains even if incidents multiply, so the policy amount is not exhausted by a single incident, on the wording of the text.
- The basic restriction: the total the insured obtains must not exceed the value of the damage arising from the liability.
So having several policies widens the cover, but does not allow the insured to obtain more than the value of the actual damage.
Article 355 provides that liability insurance for damage to third parties caused by the ship has effect only if the sum insured on the ship is not enough, while Article 357 allows whoever undertakes building or repairing a ship to conclude insurance covering his liability for damage to it or to third parties. To coordinate several liability policies, it is advisable to consult a lawyer specialized in insurance.
Practical example
A ship operator has two liability insurance policies, the first for SAR 5,000,000 and the second for SAR 3,000,000. An incident causes damage to a third party worth SAR 6,000,000. Each insurer is bound within the limit of his policy, provided that the total the operator obtains does not exceed SAR 6,000,000.
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 356 of the Saudi Commercial Maritime Law
What if I have more than one liability insurance?
Each insurer is bound for each incident separately within the limit of the amount stated in his policy, even if incidents multiply.
Can I get more than the value of the damage?
No, the total the insured obtains must not exceed the value of the damage arising from the liability.
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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
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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.
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- 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.