Article 3 of the Saudi Insurance Authority Statute
المادة 3 من تنظيم هيئة التأمين
The article sets the Insurance Authority's objectives: regulating and supervising the insurance sector, raising insurance awareness, protecting the rights of the insured and beneficiaries, and the stability and development of the sector.
Official text (Arabic)
This article has not been amended since the law was issued.
تهدف الهيئة إلى تنظيم قطاع التأمين في المملكة والإشراف والرقابة عليه بما يدعمه ويعزز من فاعليته، وتعمل على تنمية الوعي التأميني، وحماية حقوق المؤمن لهم والمستفيدين، واستقرار قطاع التأمين، والمساهمة في الاستقرار المالي، وتعزيز وتنمية قطاع التأمين، والعمل على ترسيخ مبادئ العلاقة التعاقدية التأمينية وأركانها.
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 3 explained in plain English
This article sets out the goals the Insurance Authority works to achieve, which can be grouped as follows:
1. Regulation and supervision: Regulating the insurance sector in the Kingdom and overseeing and supervising it in a way that supports it and strengthens its effectiveness.
2. Customer protection: Protecting the rights of the insured and beneficiaries, and raising insurance awareness.
3. Stability and development:
- Stability of the insurance sector.
- Contributing to financial stability.
- Strengthening and developing the insurance sector.
4. The contractual relationship: Working to establish the principles and foundations of the insurance contractual relationship.
What does this mean for the beneficiary? Protecting the rights of the insured and beneficiaries is a stated objective of the Authority, so it is the body that works toward this objective in the sector. However, the article only sets objectives. It does not explain how to file complaints or how insurance disputes are decided; those are found in the relevant laws.
Article 4 then makes the Authority the body responsible for regulating insurance business, supervising, overseeing and developing it, and lists the powers through which it achieves these objectives, such as setting licensing requirements and granting licenses. Anyone with a dispute with an insurance company would do well to consult a lawyer who specializes in insurance and commercial cases.
Practical example
Faisal bought a car insurance policy from a company in Riyadh, then felt that the company was not complying with what the policy says. Protecting the rights of the insured is one of the objectives the Insurance Authority works on as the body responsible for supervising and overseeing the sector, but the route for claiming compensation itself is found in the laws that govern it.
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 3 of the Saudi Insurance Authority Statute
What are the objectives of the Insurance Authority?
Regulating, overseeing and supervising the insurance sector, raising insurance awareness, protecting the rights of the insured and beneficiaries, the stability of the sector and contributing to financial stability, developing the sector, and establishing the principles of the insurance contractual relationship.
Does the Insurance Authority protect the rights of the insured?
Yes. Protecting the rights of the insured and beneficiaries is one of its stated objectives.
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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.