Article 9 of the Saudi General Warehouses Law
المادة 9 من نظام الإيداع في المخازن العامة
The article obliges the warehouse keeper to take out cooperative insurance on the goods deposited with him.
Official text (Arabic)
This article has not been amended since the law was issued.
على الخازن أن يقوم بالتأمين التعاوني على البضاعة المودعة.
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 9 explained in plain English
This article places a clear obligation on the warehouse keeper: to take out cooperative insurance on the goods deposited with him.
Insurance here is not an option for the warehouse keeper or the depositor, but a duty on the warehouse keeper by the text of the article. The article does not specify the type of cooperative insurance, its value, the company it is concluded with, or who bears its cost, so nothing can be drawn from it beyond the basic obligation.
The effect of this obligation can be seen from the definition of the storage receipt in Article 2, since the receipt contains all necessary details, such as the type of insurance, the name of the company insuring the goods, and the beneficiary of the insurance. So the insurance details are part of the document the depositor receives.
This article comes in the context of the provisions that protect the deposited goods. Article 8 allows the warehouse keeper to ask the Board of Grievances for permission to sell goods threatened with rapid damage that he had no part in, if the depositor refuses to take delivery of them or dispose of them after being notified by registered letter. It is followed by Article 10, which provides that the depositor receives from the general warehouse the storage receipt accompanied by a pledge document, and that the warehouse keeps a true copy of both.
In practice, the depositor would do well to check the insurance details recorded in the storage receipt he receives. A person with a question about his insurance-related rights in a particular case may consult a lawyer specializing in commercial matters.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 9 of the Saudi General Warehouses Law
Must a general warehouse insure the goods?
Yes. The warehouse keeper must take out cooperative insurance on the deposited goods.
Where do the insurance details for the goods appear?
The storage receipt, as Article 2 defines it, contains details such as the type of insurance, the name of the company insuring the goods, and the beneficiary of the insurance.
More articles on Warehouse Keeper's Obligations and Liability
- Article 4
The article bars the warehouse keeper, whether an individual or a company, from commercial activity or speculating in goods of the type he keeps; the bar covers a partner owning 10% or more and exempts state-owned companies.
لا يجوز للخازن فردا كان أو شركة أن يمارس بأية صفة كانت سواء لحسابه أو لحساب غيره نشاطا تجاريا، أو يضارب على بضائع من نوع البضائع المرخص له بحفظها في مخزنه، وإصد
- Article 7
The article makes the warehouse keeper responsible for guarding the deposited goods with the utmost care, within the limit of their value recorded in the deposit documents, and not liable for damage or shortage caused by force majeure or an inherent defect.
يعد الخازن مسؤولا عن البضاعة المودعة لديه وعليه حراستها والمحافظة عليها وأن يبذل في ذلك العناية القصوى، وتكون مسؤوليته في حدود قيمتها المثبتة في مستندات الإيداع
- Article 8
The article allows the warehouse keeper to ask the Board of Grievances for permission to sell goods threatened with rapid damage he had no part in, if the depositor refuses to take them or dispose of them after being notified by registered letter.
للخازن أن يطلب من ديوان المظالم الإذن له ببيع البضاعة إذا كانت مهددة بتلف سريع لا دخل له فيه ورفض المودع تسلمها أو التصرف فيها بعد إبلاغه بذلك بخطاب مسجل، ويحدد
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.