19 February 2025
The Insurance Authority has
announced the suspension of Al Sagr Cooperative Insurance Company from selling
mandatory vehicle insurance products starting from 19 February 2025. This
decision was issued due to the company’s violation of regulatory and supervisory
instructions, in addition to the failure of its Board of Directors to implement
effective governance procedures. The decision was made by Article (19) of the
Cooperative Insurance Companies Control Law, issued by Royal Decree No. (M/32)
dated 02/06/1424H, and its subsequent amendments.
It should be noted that the
suspension from selling mandatory vehicle insurance products does not relieve
the company of its obligations toward existing insurance policies and any
claims arising from them. The company remains fully responsible for fulfilling
its commitments and taking all necessary measures to ensure that the interests
of policyholders and stakeholders are protected.
The Insurance Authority
emphasizes that this measure is part of its ongoing efforts to support the
stability, regulation, supervision, and oversight of the insurance sector, as
well as to safeguard the rights of policyholders, beneficiaries, and all
relevant parties. The Authority confirms that the suspension will not be lifted
until the company rectifies its situation and proves its compliance with the
applicable regulatory standards and requirements. The Authority urges all
individuals with outstanding rights or claims involving the company to reach
out directly to Al Sagr Cooperative Insurance Company. If the company does not
respond, individuals may submit their complaints to the Insurance Authority
through the Customer Protection Portal at (care.ia.gov.sa) or by calling the
toll-free number (8001240551).