What are the supporting documents for a claim of medical (health) insurance?
All documents relating to a claim, such as those indicating the age, nationality and identity of the insured, validity of the policy, accompanying circumstances of the accident subject of the claim and incurred expenses in addition to the following documents: Invoices, receipts, prescriptions, medical reports, referrals, recommendations and any other orginal documents may be deemed necessary by the insurer.
What are the basic terms and conditions of a finance product or service that a finance company shall disclose prior to signing a finance agreement?
A finance company must, prior to the conclusion of a finance agreement, disclose and clarify all details related to the requested finance product or service to customers and provide them with a summery of the main terms and conditions pertaining to the finance product or service, including, for example:
- Fees, commissions, administrative service costs and the annual percentage rate.
- Finance repayment period.
- Early repayment procedures.
- Finance agreement termination procedures.
- Withdrawal right procedures, if any.
- Obligations and duties of each party under the agreement.
- Any item that can be modified by the company after the agreement comes into force.
- Any restriction or condition that may harm the customer’s interests.
- Procedures for handling complaints.
What are the procedures that a finance company should follow upon receiving complaints from customers?
Upon receiving a complaint, the finance company must:
- Contact the customer through guaranteed means of communication to confirm receipt of the complaint and inform the customer of the required documents (if any) within 5 business days.
- Provide the customer with the complaint number and contact information through which they can follow up the updates of the complaint.
- Respond to the customer with the results within a period not exceeding 10 business days from the date of receiving the complaint.
- Retain and document the communication channel used for the complaint and maintain its records.
What is finance rescheduling?
When a customer’s salary is decreased, their monthly payment amounts are reduced, resulting in an extension of the repayment period. In this case, the repayment period is rearranged. This is called finance rescheduling.
Does the finance amount decrease if the customer has a credit card?
Yes, because credit cards are included in the calculation of customers’ credit limit, and with their commitment to paying their credit card dues, their chances of obtaining approval of a finance application will be improved.
Is the customer required to update their personal information given to the finance company?
Customers must constantly update their personal details that include contact information (email address, P.O. Box, etc.). They bear full responsibility for providing authentic information and for the consequences of not providing the finance company with such required information.
What is the finance company’s responsibility for the conduct of employees assigned to roles that include sales and marketing of finance products?
In order to ensure that good quality sales and marketing services are provided to all customers, a finance company must publish a clear code of conduct with customers and ensure that each employee receives a copy.
What are the finance company’s responsibilities towards its customers upon dealing with them or selling to them?
When selling or using any service or product, the finance company must deal without prejudice with customers and must not put pressure on them for any reason.
Is the finance company entitled to collect fees from customers upon their request of a detailed account statement?
Upon a customer’s request, the finance company must provide a detailed account statement without any fees and without delay, containing all fees, term cost and applied costs in addition to any additional costs in case of default or early repayment.
How many times can a customer receive a free-of-charge report showing their payments made and the remaining payments?
A customer is entitled, on a quarterly basis, to request an electronic or paper report showing the payments made and the payments remaining from the finance company.
What are the actions that the finance company is prohibited from taking to recover the amounts due from customers?
Under the finance agreement, the finance company does not have the right to take any illegal or unlawful actions to recover any amounts due to it.
What financial obligations should a customer disclose upon the request to obtain a finance product, and what is the finance company’s responsibility towards them?
In order to ensure the customer’s financial capability to pay finance amounts in the future, the customer must disclose all of their financial obligations with any entity. Through this information, the finance company can ensure the product suitability for the customer’s financial position and needs.
When should a finance company issue a clearance letter for the customer in the case of full and final repayment of the finance?
The finance company should provide a clearance letter to the customer within seven business days from the date the final payment is made, and it must update the customer’s credit record at the Saudi Credit Bureau (SIMAH).
If a finance company mistakenly collects amounts from a customer, what is the action to be taken?
The finance company must immediately return the amounts collected my mistake to the affected customer’s account without having to receive any claims from the customer. These amounts are not to be used by the finance company.
What should a finance company consider regarding death cases before the conclusion of an agreement?
The finance company must inform the customer, prior to signing an agreement, of the regulations and procedures followed with regard to finance agreements in the case of death of the person who receives finance (God forbid).
Does the finance company have the right to reject granting finance to a customer?
The finance company has the right to reject a customer’s request for a finance product, provided that it must inform the customer of the reasons for rejection through guaranteed means of communication, within five days from the date of rejection.
Is the company entitled to change the amount of fees and commissions to be paid by customers after singing the finance agreement?
No, the company does not have the right to do so.
If a company decides to make changes in the agreement, what are the customer’s rights and the company’s obligations towards the customer?
In the event that a finance company needs to change or amend any of the agreement items, it must notify the customer 30 days in advance. The customer has the full right to object to that change within a period of 10 days from the date of receiving the notification.
What are the finance company’s responsibilities towards humanitarian conditions of its customers?
If the company encounters customers who are facing an urgent financial difficulty or distress, it should deal with them with full understanding and consideration of their humanitarian situations.
Does the finance company has the right to know the purpose of obtaining finance?
The finance company must learn the reason or purpose behind the customer's request for finance and have it recorded.
Which authority is supervising finance companies?
The Saudi Arabian Monetary Authority (SAMA) supervises finance companies licensed to provide services in Saudi Arabia; it is the only body authorized by law to do so.
Can I use a mada card outside Saudi Arabia?
Yes, as long as it is branded with the logo of international payment companies since the Saudi Payment Network is linked with the GCCNet, international payment companies (e.g. Visa and MasterCard) and allows mada cardholders to make cash withdrawals from ATMs and POS payments across the Gulf and the world.
Is there any additional fees for issuing a mada card?
There is no additional charge for issuing a mada card when opening, closing or renewing a bank account as per SAMA instructions.
How can I get a mada card?
From your credit card issuing bank and it will issue a new mada card as soon as the current card expires or a customer may request mada card to be issued before the current card expires if he wishes to renew it.
How does a mada card work?
A mada card works like any bank card but with more enhanced security features, benefits and creative services.
What is mada card?
Mada is the new identity of the Saudi Payment Network (SPAN). it connects all automated teller machines (ATMs) and point-of-sale (POS) terminals to a central payment switch that in turn securely re-routes the financial transactions.
What are credit cases to be insurance covered?
Credit Shield generally covers natural death, death because of traffic accident or total permanent disability (due to accident or illness).
Is there a specific age for insurance coverage?
The cardholder shall be at least 18 years old and not more than 70 years old.
What is the Credit Shield Program?
A merit that comes with your credit card to cover your outstanding credit card balance in unexpected cases (Allah forbid).
What is a credit score?
It is the customer's score in the credit assessment report, upon which individuals or entities decide whether to do business or not. The customer's credit score is being updated whenever there is a change in the credit report.
How much should I pay monthly?
The minimum amount a customer should pay per month is 5% of the outstanding balance. The customer may make full payment within the due period at no additional charges.
Can I set a separate credit limit for my additional credit cards?
Yes, a customer can set a separate credit limit and can easily increase or decrease the credit limit for the additional card.
What should I do when my credit card is lost or stolen?
Upon noticing that you have lost your credit card or it has been stolen, immediately contact your issuing bank at the telephone number for lost credit cards. This number is available on the Bank's official website. Within 24 hours, the bank will deactivate your lost card and issue a replacement card (a token fee may apply).
Does a bank have a right to deduct fees from my bank account when I close it, without informing me of such fees?
A customer has the right to be informed of any fees that will be deducted from the final closing balance within five days of account closure or transfer to another bank.
What entities that have the right to access my balances, accounts, valuables, deposits and investments with banks operating in Saudi Arabia?
- Courts, Board of Grievances,
- Ministry of Interior.
- Regions Emirates.
- Ministry of Finance.
How long does it take a bank to refund my money withdrawn from my account by mistake?
Upon acceptance and approval of a customer's complaint to recover his/her money, the money will be refunded to his/her account within five days as of the complaint date. If the process would take longer, such a customer should be notified in advance of that delay.
How can I make sure that the money I have transferred will be sent to the correct account?
Your bank shall be responsible for verifying the data of your payment and transfer, especially your IBAN and the bank code for the bank your are transferring before completing the transfer transaction.
How much the fees for transferring money to a beneficiary outside Saudi Arabia?
As regards international transfers, a bank may impose a fixed fee on a customer transfer regardless of the amount, but it shall inform the customer of such fees before the transaction.
Is disclosing my personal details part of my bank account update procedure?
Disclosing personal details, especially customer account details or passwords whether by via telephone or by text message, is not part of any bank procedures.
How can I make sure that it is safe to use the Internet in carrying out banking operations?
Your bank shall take all measures and is responsible for the safety of all banking channels. In case your account has been hacked, your bank shall compensate you for any damages or financial losses resulting from weaknesses in its protocols or security controls for these channels.
Is it obligatory to deposit a certain amount to open a bank account?
No deposit is required to open a bank account and the bank has no right to impose such a prerequisite. However, a bank may close your account if your balance is zero for 90 days as of account opening.
Does the bank have the right to close my account without informing me?
The bank must inform the customer 60 days prior to taking the decision to close the account and provide the reasons behind such a decision. This excludes fraud or embezzlement cases in which the bank shall have the right to close the account without prior notice.
Does the bank have the right to refuse opening an account?
Any natural or legal person has the right to open an account in any bank in Saudi Arabia. No bank shall have the right to refuse any account opening request as long as it completes all the procedures and meets all requirements for opening a bank account. This excludes some cases as specified by SAMA.
What are the excluded risks of property insurance?
- Damages caused by riots and domestic conflicts unless agreed upon or endorsed by the insurance policy.
- Damages ensuing from wars whether declared or undeclared
- Damages of radioactive contamination whether it is the direct cause or not.
- Injuries or death caused by pollution.
- All types of consequential losses.
- Terrorism risks
- Damages ensuing from maritime risks provided that their exclusion has been clearly stated in the insurance policy.
What are the coverage limits of property insurance?
- The coverage of the insured item(s) whether it is real estate or a movable asset against risks (e.g. fire, theft, pipe cracks, natural hazards, etc.).
- Contents of the item(s) insured.
- Personal liability.
- Legal liability against death cases and casualties caused by unforeseen accidents to the insured property.
- Rent loss for the landlord owing to the real estate’s unsuitable condition arising from a defect or risk falls within the limits of the coverage provided for in the insurance policy.
- The cost of an alternative accommodation while the damaged real estate is being repaired.
What are the types of property that can be insured?
Insurable properties can be divided into three categories:
- Buildings: The structure of the building and its attachments.
- Machinery and other contents: All the building contents except stock that might be stored in the storehouse or the building.
- Stock: All items in the custody of the insured whether he/she owns them or not, and the items and goods kept by an organization whether it owns them or not.
What are the supporting documents for a claim of motor insurance?
To file a claim, the insured shall have documents proving the validity of the insurance policy and presenting the accompanying circumstances of the accident from which the claim originated. In addition, the insured shall provide the accident report issued by the General Department of Traffic and any other original documents the insurer may require, including:
- Driving license.
- Vehicle registration.
- Insurance policy.
What are the things that you should check when purchasing a comprehensive motor insurance policy?
- Limits of Coverage: The amount of coverage stated in the policy or the vehicle’s market value at the time of the accident, whichever is lower, represents the insurer’s maximum liability for compensation. It is important that you report the actual value of your vehicle to the insurer when applying for an insurance policy and to be precise about its value at the time of the renewal of such policy.
- Percentage of Depreciation: The principle of depreciation applied to the insured item refers basically to the principle of compensation, which aims at restoring the insured to his/her same financial position prior to the loss suffered. This method is used widely by the insurers as a means to compensate for the actual value of the damage incurred, in addition to taking consideration of the lifespan of the depreciated spare parts. For example: If a car had an accident after six months of insurance, in which it was totally wrecked, and its value was SR 100,000 at the time of the purchase of the insurance policy, the insurer will not reimburse the insured for the whole amount, but will consider the depreciation amount of the car for six months, and deduct that amount from the reimbursement amount.
- No Claims Discount (NCD): Some insurers offer to insureds “no claim discount” by which insurance premiums are reduced to the insured for the next year due to having a claim-free and accident-free record over the previous insurance year. This offer serves as a financial incentive and encouragement to the insureds.
What is the comprehensive motor insurance policy?
A comprehensive motor insurance policy has two parts. The first part of this policy covers damages or injuries suffered by the insured, his/her car (the car is covered against fire, theft, and incidental accidents) and other passengers. The second part covers damages and injuries incurred by a third party (both properties and individuals).
What is the compulsory motor insurance policy?
Compulsory insurance policy covers the damages caused by your car to a third party, both individuals and properties. This policy does not cover the damages suffered by you or your vehicle. For example, if you have been in an accident, and the accident is 100% your fault, the insurer will compensate the third party in that accident against all the damages he/she has suffered, but the insurer will not compensate you for the damages incurred by you or your vehicle.
What is the aim of cooperative insurance?
The cooperative insurance aims at protecting the insured against potential risks and accidents and bringing them back to their financial position before the incident.
Does the insured bear a proportion of the cost of healthcare treatment or does the insurer bear all costs of such treatment?
It depends on the type of the insurance policy. In some policies, the insured bears costs and expenses at a certain percentage in accordance with the insurance agreement entered into between the insured and the insurer. However, in other policies the insured is not liable for any expenses, and policies of this type are very expensive compared with other polices.
What diseases that are usually excluded from the coverage of medical (health) insurance by the insurers?
The following diseases that are excuded are as follows:
- Cosmetic surgeries except those required for reconstructing deformities ensuing from an accident covered under the insurance policy.
- Chronic diseases suffered prior to entering into the insurance contract, such as diabetes.
- Routine medical check-ups for employment or travel.
- Steroids and vitamins.
What are the exclusions of motor insurance?
The cases involving an accident or risk that is excluded from the insurance coverage, and the insurer is not laible for indemnifying the insured for the damages caused to his/her car as a result of such accident or risk. Such cases are included in the policy under “Exclusions” or “Exclusions from the Coverage Limits” or “General Exceptions”. For example: Disaster risks. Risks resulting from driving a car by a person under the age of 21.
What is a deductible (copayment)?
It is an amount provided for in the policy schedule and paid by the insured in case an accident or risk falls within the coverage limits of the insurance policy is incurred. For example: In the event of a car accident with a SAR 10,000 cost of repairs, and the deductible amount is SAR 2000, the insurer bears SAR 8,000 and the insured bears SAR 2000.
What is a coverage limit?
A coverage limit is the maximum amount an insurer can pay for a covered loss. It is the maximum financial liability an insurer can assume in case of any risk or accident incurred by an insured. For example: The maximum limit of the insurer's in accordance with the coverage limits of the motor insurance policy is SAR 8,000,000 (eight million Saudi riyals) for material damages and SAR 3,000,000 (three million Saudi riyals) for physical damages, and any amounts exceeding these limits of coverage should be borne by the insured.
What does insurable interest mean?
It is the legal right of a natural or legal person to have insurance coverage on any of their properties (e.g. a car, a house, etc.), provided that a legal relationship must exist between the insured and the subject matter of insurance; a person has the right to have insurance on objects with which they share a legal relationship or an insurable interest, whereas others cannot have insurance on any object belonging to that person because there is no legal “ownership” relationship with that object.
Are there any fees for transfering money from my bank account?
There are no charges for transfers from one account to another or from one credit card to another.
Where do I go if I have a problem with or an objection over my credit card?
You shall present your objection or problem, along with the required documents, to the card issuer. Then, if you do not reach a settlement, you can file your complaint via SAMACare website.