Saudi Arabian Monetary Authority issued an official statement on Monday warning against dealing with persons not licensed to practice insurance activities in the kingdom.
In a step to ensure that citizens and residents receive fair prices and the best insurance services, SAMA warns against falling victim of illegal practices by dealing with unlicensed persons, which may lead to the denial of insurance claims.
The warning came after SAMA noticed some irregular practices by a number of unlicensed parties, including service offices, car dealers and street vendors that practice different forms of fraud when issuing compulsory vehicle insurance policies to customers.
The result of the abovementioned unlawful transactions is unprofessional practices, including the failure to obtain actual prices provided by insurance companies or losing discount benefits, providing false data, which might lead to the cancellation of the insurance policy, leaving the customer with no other option at the time of the incident.
SAMA called for dealing only with licensed insurance companies that are listed on its website (www.sama.gov.sa). It also urged customers to hold on to their rights and consult their insurance company. In case that a company does not respond, a customer should submit a complaint to the Consumer Protection Department on (samacares.sa) or through the toll-free number: 8001256666.
