Article 357 of the Saudi Commercial Maritime Law
المادة 357 من النظام البحري التجاري · الفصل الخامس: التأمين من المسؤولية
The article allows whoever undertakes building or repairing a ship to conclude insurance covering his liability for damage to the ship or to third parties.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز لمن يتولى بناء السفينة أو إصلاحها أن يعقد تأميناً لضمان مسؤوليته عن الأضرار التي تلحق بها أو بالغير.
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 357 explained in plain English
This article gives whoever undertakes building or repairing a ship the right to insure his liability, so he may conclude insurance covering his liability for:
- Damage to the ship itself while it is being built or repaired, and
- Damage to third parties.
Shipbuilding companies, repair yards and marine workshops may be liable for damage that occurs during their work, such as damage to the ship they are working on, or injury to the property of others. This article confirms that this liability may be covered by insurance.
The text permits and does not oblige, so the insurance here is optional on the article's wording.
This insurance differs from insurance on the ship itself that its owner concludes, as it is insurance on the liability of the builder or repairer. Article 356 regulates the case of several liability insurances, where each insurer is bound within the limit of his policy provided the total does not exceed the value of the damage. Article 358 moves on to pollution prevention, requiring the ship's master to notify port authorities immediately of any oil leak while it is in the Kingdom's ports or maritime areas. Anyone working in shipbuilding or repair may consult a lawyer specialized in insurance and maritime cases.
Practical example
A company in Dammam is repairing a ship in its dry dock, and fears its work may cause damage to the ship or to other nearby ships. It may conclude insurance covering its liability for these damages.
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 357 of the Saudi Commercial Maritime Law
Can a ship repair company insure its liability?
Yes, whoever undertakes building or repairing a ship may conclude insurance covering his liability for damage to it or to third parties.
Is this insurance mandatory?
The text uses the language of permission, so it does not impose this insurance.
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.