Article 4 of the Saudi Insurance Control Law
المادة 4 من نظام مراقبة شركات التأمين التعاوني
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.
Official text (Arabic)
This article has not been amended since the law was issued.
تحدد اللائحة التنفيذية عمليات التأمين الخاضعة لهذا النظام ، وتحدد كل شركة من شركات التأمين أنواع التأمين التي سوف تمارسها .
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 4 explained in plain English
This article deals with the scope of the Law in terms of the type of activity, and divides the determination between two bodies:
- The Implementing Regulations: determine the insurance operations subject to this Law. The Law does not list these operations itself, but refers to the Regulations for them.
- Each insurance company: specifies the types of insurance it will carry on, so not every company is bound to carry on all types.
The difference between the two is that the first determines what falls within the scope of the Law generally, while the second determines what each company chooses for itself from within that scope.
This article comes after Article 3, which requires a license from the Saudi Central Bank to carry on insurance business, and requires the company to be a joint stock company whose main purpose is insurance or reinsurance. It is followed by Article 5, which prevents insurance and reinsurance companies, after they begin their business, from ceasing to carry on insurance business before obtaining the approval of the Saudi Arabian Monetary Agency.
The article does not set out these operations or types, or how a company announces the types it carries on; these are to be found in the Implementing Regulations.
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 4 of the Saudi Insurance Control Law
Who determines the insurance operations subject to the Law?
The Implementing Regulations of the Law determine them.
Does every insurance company carry on all types of insurance?
Not necessarily. The article provides that each company specifies the types of insurance it will carry on.
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 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 24
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.
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
- 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.