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Monday, Jul 04, 2022

SR3,000 fine for renting out vehicle without insurance

SR3,000 fine for renting out vehicle without insurance

Saudi Arabia’s Public Transport Authority (PTA) has proposed draft amendments to the regulations governing the activity of car rental and rental by brokers in the Kingdom.
The amendments are proposed to the Violation 58 in the table of violations and penalties in the regulations, which states: “Any facility, which is licensed to engage in car rental activity, shall be punished with a fine of SR3,000 in the event of renting out any vehicle that has not the approved insurance coverage.”

The amendment of Paragraph 1 of Article 32 read as follows: “The vehicle will be subjected to insurance coverage, and it covers, as a minimum, civil liability towards third parties for all beneficiaries of car rental services who have a valid driver’s license in accordance with the unified compulsory insurance policy on the vehicles for the duration of the operation or for the duration of the contract or any extension of the contract thereof.

“The liability arising from this type of coverage — in any case — is not transferred to the tenant, and the rental establishment shall bear the full responsibility for renting out a vehicle without any insurance coverage.”

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