SAMA Suspends United Cooperative Assurance Company from Issuing or Renewing Any Comprehensive or Mandatory Motor Insurance Policy

RIYADH, Saudi Arabia, Dec. 6 -- The Saudi Arabian Monetary Agency issued the following news:

Reference is made to SAMA's announcement dated 15/09/1437H (20/06/2016) on suspending the United Cooperative Assurance Company (UCA) from accepting new subscribers to the motor insurance business, and therefore, the company was not allowed to issue new motor insurance policies or renew existing ones due to its incomplete compliance with the regulatory requirements regarding settlements of motor insurance claims and customers' complaint processing; and to SAMA's announcement dated 05/12/1437H (06/09/2016) on allowing the UCA to resume issuing and renewing motor insurance policies as it had duly rectified SAMA's observations with regard to settlements of motor insurance claims and customers' complaint processing;

SAMA would like to announce that, due to UCA's repeated non-compliance with the regulatory requirements concerning motor insurance claim settlements and customers' complaint processing, and in accordance with Article 19 of the Law on Supervision of Cooperative Insurance Companies issued by royal decree No. M/32 dated 02/06/1424H, it has decided to suspend the UCA from accepting new subscribers to the motor insurance business, and therefore, the company is not allowed to issue new motor insurance policies or renew existing ones effective from 08/03/1438H (07/12/2016). In addition, the insurer shall name an external consultant, that should be approved by SAMA and its scope of work should be set by SAMA as well, to assess the company's processes relating to claim settlements and compliant processing, make recommendations and develop necessary corrective actions. This decision is made in light of SAMA's role of protecting the rights of policyholders and beneficiaries of insurance coverage as well as its strong strive to prevent any illegal practices in the insurance sector.

22VistaJ-5721171 22VistaJ