SAMA Suspends Arabian Shield Cooperative Insurance Company from Issuing New Motor Insurance Policies

RIYADH, Saudi Arabia, Jan. 8 -- The Saudi Arabian Monetary Agency issued the following news:

Due to its failure to comply with the regulatory requirements of motor insurance claim settlements and customer complaint processing despite SAMA's constant follow-up, and pursuant to Article 19 of the Supervision of Cooperative Insurance Companies Law issued by Royal Decree No. M/32 dated 2/6/1424H, SAMA would like to announce that it has decided to suspend the Arabian Shield Cooperative Insurance Company from issuing any new motor insurance policies for a minimum period of one month, effective from 11/4/1438H (9/1/2017). The suspension will not be lifted until the insurer corrects its irregularities and complies with the standards and requirements that protect the rights of customers and beneficiaries of insurance coverage. Moreover, the suspension decision does not relieve the company from its obligations under its current effective insurance policies or claims arising therefrom. Also, in case the company's irregularities persist, SAMA will take further regulatory actions.

This decision comes as part of SAMA's keen interest to protect the rights of insured and beneficiaries of insurance coverage as well as its constant endeavors to prevent any illegal practices in the insurance sector.

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