Article 24 of the Saudi Insurance Control Law
المادة 24 من نظام مراقبة شركات التأمين التعاوني
The article provides that the Companies Law applies to everything not covered by a special provision in the Cooperative Insurance Companies Control Law, to the extent consistent with insurance companies' nature and subject to Article 1.
Official text (Arabic)
This article has not been amended since the law was issued.
مع مراعاة ما ورد في المادة ( الأولى ) من هذا النظام يسري نظام الشركات على كل ما لم يرد في شأنه نص خاص في هذا النظام ، وذلك بالقدر الذي يتفق وطبيعة هذا النوع من الشركات .
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 24 explained in plain English
This article identifies the law to turn to when the Cooperative Insurance Companies Control Law has no provision. The rule is:
- Starting point: the Cooperative Insurance Companies Control Law is the special law, so where it has a special provision, that provision applies.
- Where there is no provision: the Companies Law applies to everything not covered by a special provision in this law.
- First limit: this is to the extent consistent with the nature of insurance companies, so no part of the Companies Law that conflicts with their nature is applied.
- Second limit: subject to what is stated in Article 1, which provides that insurance in the Kingdom is to be through insurance companies registered in it that operate on the cooperative insurance basis, modeled on the articles of association of the National Company for Cooperative Insurance, and in a manner not conflicting with the provisions of Islamic Sharia.
In practice, the provisions of the Companies Law apply to insurance companies on matters this law does not address, but without prejudicing the cooperative insurance method or the Sharia requirement.
This article comes after Article 23, which provides that the Implementing Regulations are issued by decision of the Minister of Finance, and before Article 25, which sets the law's publication and entry into force 90 days after publication. Anyone who needs to determine which law governs a particular matter in an insurance company should consult a lawyer specialized in insurance and financial-sector matters.
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 24 of the Saudi Insurance Control Law
Does the Companies Law apply to insurance companies?
Yes. The Companies Law applies to everything not covered by a special provision in this law, to the extent consistent with the nature of insurance companies.
What limits apply to applying the Companies Law to insurance companies?
It applies only to the extent consistent with their nature and subject to Article 1, which requires the cooperative insurance method and no conflict with Islamic Sharia.
Articles this article refers to
More articles on Cooperative Insurance and the Scope of the Law
- Article 1
The article limits insurance in the Kingdom to insurance companies registered there that operate on a cooperative insurance basis in a manner that does not conflict with the provisions of Islamic Sharia.
يكون التأمين في المملكة العربية السعودية عن طريق شركات تأمين مسجلة فيها ، تعمل بأسلوب التأمين التعاوني على غرار الأحكام الواردة في النظام الأساسي للشركة الوطنية
- Article 4
The article makes the Implementing Regulations determine the insurance operations subject to the Law, and makes each insurance company specify the types of insurance it will carry on.
تحدد اللائحة التنفيذية عمليات التأمين الخاضعة لهذا النظام ، وتحدد كل شركة من شركات التأمين أنواع التأمين التي سوف تمارسها .
- Article 23
The article provides that the Implementing Regulations are issued by decision of the Minister of Finance, published within 60 days of the law's publication, and take effect when the law does.
تصدر اللائحة التنفيذية لهذا النظام بقرار من وزير المالية ، ويتم نشرها خلال ستين يومًا من تاريخ نشر هذا النظام ، ويبدأ العمل بها بتاريخ العمل بهذا النظام .
- Article 25
The article provides that the Cooperative Insurance Companies Control Law is published in the Official Gazette and takes effect 90 days after its publication date.
ينشر هذا النظام في الجريدة الرسمية ويعمل به بعد مضي تسعين يومًا من تاريخ نشره .
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.