Fleet Commercial Vehicle Comprehensive Insurance Policy

This Policy issued in accordance with the Cooperative Insurance Companies Supervision Law promulgated by Royal Decree
No. M / 32 dated 02/06/1424H and its Implementing Regulations issued under Ministerial Resolution No. 1 / 596 dated
01/03/1425H, and on the Council of Ministers Decision No. 222 dated 13/08/1422 H in respect of the motor compulsory
insurance.

Definitions

The following words and phrases shall, wherever mentioned in this Policy have the meanings indicated below, unless the
context requires otherwise:

1. Compulsory Insurance Policy (Policy):

Public Liability Insurance Policy towards Third Parties for Vehicles where the Company undertakes to compensate the
third parties in the event of damage covered under this Policy, against the premium paid by the Insured to the Company.
This Policy includes a Bill Bond Certificate and Endorsements (if any) that are not inconsistent or contrary to the provisions
contained in this Policy.

2. Company (Insurer):
Aljazira Takaful Ta’awuni Company.

3. Insured:
The natural person or legal entity who signed the Insurance Policy with the Insurer and his name is stated in the schedule of
the Policy.

4. Proposal form:
The form completed and signed by the proposer of the insurance and information contained therein constitutes a
contractual basis and is an integral part of this document.

5. Schedule of the Policy:

The schedule attached to the policy, which shows limits of the coverage, period of the insurance, data of the insured vehicle
data, conditions and details of the extension of insurance coverage.

6. Period of Insurance:
The period of validity of insurance coverage.

7. Driver:
Anybody driving a vehicle, public work equipment or motorbike at the time of the accident (loss).

8. Vehicle:
Any means of transportation prepared to move on wheels or tracks that runs or is driven by mechanical or animal power,
well described in the Policy (excluding trains).

9. Third Party:
Any natural person or legal entity that sustains covered injury/damage under the provisions of this Policy, excluding Insured
and/or Driver.

10. Bodily Injuries:

Death and/or Bodily Injuries that may sustain to a third party, including permanent or temporary total or partial disability.

11. Temporary Total Disability:

A disability that completely prevents the injured person from exercising his/her work/profession for a temporary period.

12. Permanent Total Disability:

A disability that completely prevents the injured person from exercising his/her work/ profession for more than 52 weeks
and do not improve at the end of this period.

13. Physical Damage:

Damage that may sustain to properties belonging to a third party.

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 Fleet Commercial Vehicle Comprehensive Insurance Policy

14. Medical Expenses:

Maximum SAR. 1,000/- per person, Subject to a maximum of SAR. 5,000/- per occurrence.

15. Other Expenses:

Expenses incurred by a third party due to an accident, including towing or vehicle transportation charges and damage
assessment expenses.

16. Claim:
Written notice to the Company requesting compensation for an accident (loss) covered under the provisions of this
Policy.

17. Claimant:
The natural person or legal entity affected by an accident covered under the provisions of this Policy, including the heirs
of a natural person in the event of his death.

18. Compensation:
Amounts to be paid by the Company to a third party within the maximum limit of public liability contained in this Policy.

19. Premium:
The amount paid by the Insured to the Company in return for the Company to compensate third parties for damage or
loss, which the direct cause of the occurrence, is risk insured under the provisions of this Policy.

20. Public Liability:

Liability of the Insured and/or Driver against third parties physical damage or bodily injuries caused by the insured
vehicle.

21. Material Fact:

Any fact that affects the Company›s decision to accept or reject insurance or affects the insurance premium or the
terms of the contract.

22. CC:
Engine cubic capacity.

23. HP:
Engine horsepower.

Insurance coverage

WHEREAS the Insured by a proposal and declaration which shall be the basis of this contract and is deemed to be
incorporated herein has applied to the Company for the insurance hereinafter contained and in consideration of the
payment of the contribution (premium) mentioned in the Schedule the Company hereby undertakes to insure the
vehicle/s stated in the schedule during the stated period of insurance and in accordance with the terms exceptions and
conditions of the policy as hereinafter provided

SECTION I - LOSS OR DAMAGE – Insured Vehicle

1. The Company will indemnify the Insured against loss of or damage to the Motor Vehicle and its accessories and
spare parts whilst thereon
a. by accidental collision or overturning or collision or overturning consequent upon mechanical breakdown or
consequent upon wear and tear
b. by fire external explosion self-ignition or lightning or burglary housebreaking or theft
c. by malicious act
d. whilst in transit (including the processes of loading and unloading incidental to such transit) by road rail inland
waterway lift or elevator
e. Damage to windscreen resulting or arising from an accident to the vehicle.
f. Any natural disaster such as hurricanes, earthquakes, floods or volcanoes

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 Fleet Commercial Vehicle Comprehensive Insurance Policy
2. At its own option, the Company may pay in cash the amount of the loss or damage or may repair reinstate or replace
the Motor Vehicle or any part thereof or its accessories or spare parts. The liability of the Company shall not exceed the
value of the parts lost or damaged and the reasonable cost of fitting such parts. The Insured›s estimate of value stated
in the Schedule shall be the maximum amount payable by the Company in respect of any claim for loss or damage.

3. Protection & Removal: SAR. 1,000/-

EXCEPTIONS TO SECTION I

The Company shall not be liable to pay for:

1. The amount specified in the Schedule as Claim Excess each and every claim other than for loss or damage caused by
fire external explosion self- ignition burglary lightning housebreaking or theft.

2. Consequential loss depreciation wear and tear mechanical or electrical breakdown failures or breakages.

3. Damage to tyres unless the Motor Vehicle is damaged at the same time.

4. Damage caused by overloading or strain.

5. Theft of part or accessories from vehicle whilst left unlocked and unattended unless in locked garage or premises.

6. Additional parts or accessories or any changes to the insured vehicle other than that originally fixed or carried out
by the manufacturer at the time of issue of the Policy unless declared to the Company and additional contribution was
paid.

7. Death and bodily injury of the Insured or Driver of the vehicle and damage to insured vehicle as a result of directly or
indirectly from damage to any bridge, weighbridge, viaduct and to any road or anything beneath caused by vibration or
the weight of the Motor Vehicle or of the load carried by the Motor Vehicle.

8. Death and bodily injury or damage caused or arising beyond the limits of any carriage way , thorough fare or public
road unless in connection with the bringing of any load to the motor vehicle or the taking away of the load from the
motor vehicle after loading there from.

9. Damage to the insured vehicle caused by sparks or ashes from the Motor vehicle, if steam drive.

10. Death of the Insured or Driver of the vehicle and Damage to the insured vehicle Caused by arising out of the
explosion of a boiler forming part of, attached to or on the Motor Vehicle.

11. Any liability or expenses arising whilst the insured vehicle:

a. Is used in contravention of restrictions of use stated in the schedule.
b. Carried a number of passengers exceeding the authorized capacity of the vehicle, which was proven to be the
cause of the accident.
c. Is used in any type of racing, to determine the take-off speed or in an ability testing experiment.
d. Is driven by any person under the influence of drugs, alcohol or medical drugs which intake forbids driving.
e. Is driven by any person less than (21) years of age, unless he is the Insured, and unless his name is stated in the
schedule among the names of authorized drivers less than (21) years of age.
f. Is driven by any person who does not hold a driving license, or if his driving license does not authorize him to drive
this type of vehicle(s) or if the driving license is temporarily or permanently suspended.
g. Is used in areas which public is usually not allowed to enter such as airports or seaports, except if the vehicle is
used as commercial purposes in the areas allowed.

12. If it is proven that the Insured has stated in the insurance proposal form false declaration/statements or concealed
material facts that affect the Company’s willingness to cover the risk, or the premium or the insurance conditions.

13. If it is proven that, the accident has been caused by an act deliberately and intentionally committed by the Insured or Driver.

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14. If the Insured or Driver crossed a red light.

15. If the vehicle is drove in an opposite direction against the Traffic.

16. If the Insured or Driver of the vehicle escapes from the site of the accident.

17. Drifting.

18. Liability arising directly or indirectly out of, caused by or in connection with the existence, handling, processing,
manufacturing, mining, sale, transportation, distribution, storage, use, removal, remediation, treatment, disposal or
escape of asbestos, asbestos products or any product containing asbestos

19. Liability caused by the exposure to an Electro Magnetic Field (EMF) and/or Electro Magnetic Radiation (EMR) of any
kind.

SECTION II - LIABILITY TO THIRD PARTIES

The Company will compensate third parties in cash within the terms and conditions contained in this Policy, with all
amounts to be paid by the Insured or Driver against:

A. Bodily Injuries sustained to third parties inside or outside the vehicle.

B. Physical Damage outside the vehicle.

LIIMIT OF LIABILITY
In the event of an accident occurring and resulting in the payment of indemnity in accordance with the provisions of this
Policy, the maximum limit of the insurer›s liability for one event and during the lifetime of the Policy for physical damage,
expenses and material damages shall not exceed together a total sum of SAR 10,000,000 (ten million Saudi riyals) as a
maximum liability limit for coverage.

EXCEPTIONS TO SECTION II

The Company shall not be liable to pay for:

1. Death or bodily injury to the insured or the driver.

2. Loss or damage to the vehicle insured, or of property belonging to any of the Insured or the driver inside or outside the
vehicle.

WHAT WILL NOT BE DENIED BY THE COMPANY TO COMPENSATE THIRD PARTY:

The Company reserves no right to deny compensation liability towards third parties under the provisions of this Policy
as result of irregularities of the Insured or Driver, whether the irregularities occurred prior or after the accident, or as
result of non-commitment to the provisions contained in this Policy, without prejudice to the right of the Company to
recourse against the Insured or Driver by all legal means if there is anything justifying, after payment to third parties.

Cases where the Company is obligated to compensate Third Parties without prejudice to the right of the Company to
recourse against the Insured or Driver or whomever responsible for the accident:

The Company reserves the right to recourse against the Insured or Driver or whomever responsible for the accident to
recover amounts paid to third parties in any of the following cases:
1. Any liability or expenses arising whilst the insured vehicle:

a) is used in contravention of restrictions of use stated in the schedule.

b) carried a number of passengers exceeding the authorized capacity of the vehicle, which was proven to be the cause

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of the accident.
c) is used in any type of racing, to determine the takeoff speed or in an ability testing experiment.
d) is driven by any person under the influence of drugs, alcohol or medical drugs which intake forbids driving.
e) is driven by any person less than (21) years of age, unless he is the Insured, and unless his name is stated in the
schedule among the names of authorized drivers less than (21) years of age.
f) is stolen or forcible taken.
g) is driven by any person who does not hold a driving license, or if his driving license does not authorize him to drive this
type of vehicle(s) or if the driving license is temporarily or permanently suspended.
h) is used in areas which public is usually not allowed to enter such as airports or seaports, except if the vehicle is used
as commercial purposes in the areas allowed.
2. If it is proven that the Insured has stated in the insurance proposal form false declaration/statements or concealed
material facts that affect the Company’s willingness to cover the risk, or the premium or the insurance conditions.
3. If it is proven that, the accident has been caused by an act deliberately and intentionally committed by the Insured or
Driver.
4. If the Insured or Driver crossed a red light.
5. If the Insured dose not inform the Company in writing within ten working days of any material change declared in the
insurance proposal form.
6. If the Insured or Driver declares to bear responsibility for the accident without any right in order to cause damage to
the Company.
7. If the Insured or Driver of the vehicle escapes from the site of the accident.
8. If the vehicle is drove in an opposite direction against the Traffic.
9. Drifting.
10. Insurance company shall notify the insured within 20 working days from the date of submitting the claim that
apply to the company right of recovery against the insured. The company have the right of recovery within a maximum
period of one year from the date of settlement the claim.

SECTION III – MEDICAL EXPENSES

The Company will subject to the Limits of Liability in respect of each person injured pay to the Insured the reasonable
medical expenses incurred in connection with any bodily injury by violent accidental external and visible means
sustained by the Insured or his driver or any occupant of the Motor Vehicle as the direct and immediate result of an
accident to the Motor Vehicle.

GENERAL EXCEPTIONS

The Company shall not be liable for payment of compensation in any of the following cases:

1. Any liability or expenses arising directly or indirectly from the following:

a. War, invasion, foreign enemy acts, hostilities or warlike operations (whether war be declared or not), civil war.
b. Rebellion, military or civil insurrection, insurgence, revolution, military or usurped power, martial laws or state of siege,
or any incident or cause that leads to declaration or continuation of martial laws, state of siege, acts of vandalism and
terrorist acts committed by a person(s) acting on their own behalf or on behalf of or in connection with any terrorist
organization. For the purpose of this exclusion, terrorism shall mean the use of violence for political, intellectual,
philosophical, racist, ethnic, social or religious purposes. And using violence includes terrifying all or part of the public, or
influencing, and/or resulting in strike, and/or interfering in any operation and/or government related activity or policy, or
resulting in a strike that negatively affects the national economy or any of its sectors.
c. Strike, riot, civil commotion, workers upheaval.
d. Any liability or expenses directly or indirectly incurred, caused, resulting, or contributed to by nuclear weapons, ionic
radiations, irradiating pollution from any nuclear fuel or waste resulting from the combustion of nuclear fuel. For the
purpose of this exclusion, combustion shall include any nuclear fission.
2. Death or Bodily Injury to the Insured or Driver.
3. Loss of or damage to insured vehicle, or to property belonging to the Insured or the Driver inside or outside the vehicle.
4. Loss or damage to goods transported by the insured vehicle.
5. Fines or financial penalties, warranties or guarantees that may be imposed because of the accident to the Insured or
the Driver.
6. Accidents occurring outside the boundaries of the geographical area specified in the policy schedule.

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CLAIM CONDITIONS
1. Claim Notification
In the event of any occurrence which may give rise to a claim under this Policy the Insured shall as soon as possible
give notice thereof to the Company with full particulars. Every letter claim writ summons and process shall be notified
or forwarded to the Company as soon as possible on receipt. Notice shall also be given to the Company as soon as
possible the Insured shall have knowledge of any impending prosecution inquest, fatal enquiry or offer of composition
in connection with any such occurrence. In case of theft or other criminal act which may give rise to a claim under this
Policy the Insured shall give immediate notice to the Police and co-operate with the Company in securing the conviction
of the offender.

2. Procedures for the settlement of claims:

The Company is committed to:
a) the settlement of claims amounts prescribed by the General Department of Traffic or Najm Insurance Service
Company or other authorized entities to do so, under covered provisions of this Policy in all fairness and justice without
any bargaining during a maximum period of fifteen days from the date of receipt of complete claim documents. In
the event that the Company fails to settle claims in the said period for unrealistic reasons, the beneficiary has the
right to apply to the Committees for Resolution of Insurance Disputes and Violations in order to bind the Company for
compensation for any amounts incurred due to the lack of use of vehicle due to the delay of the Company in settlement
of the claim (such as the cost of alternative vehicle).
b) The Company is committed to inform the claimant in writing of acceptance or rejection of the claim and in case
of the acceptance of the claim, the Company is committed to clarify the methods that the amount of compensation
calculated. But when the claim is rejected, the Company is committed to:
I. Provide the claimant with the reasons for rejection.
II. Inform the claimant the possibility of submitting his claim to the Committees for Resolution of Insurance Disputes
and Violations stated in Article twenty of the Law of Supervision of Cooperative Insurance Companies to be considered
by those committees.
III. Provide the claimant with a copy of the supporting documents to the Company›s decision, in the case of a written
request submitted by the claimant to the Company.

3. Basis of claim settlement for insured vehicle:

In the event of an accident giving rise to a claim under Section I sub-section 2 the following basis shall apply:
a) Partial loss
i. In the case of partial loss where some damaged parts are to be replaced the making good of the loss shall be by
fitting used parts from a similar model vehicle or if not available by new parts in which case the Company shall charge a
ratable allowance for betterment as per scale below:

Rate Age of Vehicle

Nil Up to 4 years
20% Over 4 years

In respect of batteries, tyres, wheels, wheel caps & Cassette / CD Players: 50% shall
be deducted from the new replacement values.
Total Loss: 1.5% depreciation per month with maximum 15% per annum on the basis of Declared Value (Sum Insured) or
Market Value whichever is less at the time of accident.
ii. If the required parts are not available in the Kingdom of Saudi Arabia and if the insured opt for having these parts
purchased overseas the Company shall reimburse the cost of such parts including reasonable cost of transport and
import duty if any provided always the total cost shall not exceed the latest price known in the local market
iii. It is also a condition of this insurance that the restoring of the damage shall be carried out at any authorized motor
car repair workshop the Company may see competitive to carry out such repair. Should the Insured opt for a different
workshop the Company’s liability shall be limited to the lowest estimate of repair obtained and the Company will
reimburse the insured on presentation of the vehicle for inspection after repair
b) Total Loss
In the case of an Actual or Constructive Total Loss,
i. the maximum liability of the Company shall be the Insured value or the pre-accident market value of the vehicle
whichever is less

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 Fleet Commercial Vehicle Comprehensive Insurance Policy
ii. On settlement of the claim on actual or constructive total basis the salvage remains of the vehicle shall become
the property of the Company and the Company shall dispose of the salvage in any way it deems fit . The Insured shall
extend full cooperation for this purpose and shall surrender all necessary documents thereto

4. At any time after the happening of any event giving rise to a claim or series of claims under Section II-1(a & b) of this
Policy, the Company may pay to the Insured or the Authorized Driver the full amount of the Company’s liability under
Section II-1(a & b) and relinquish the conduct of any defence, settlement or proceedings and the Company shall not be
responsible for any damage alleged to have been caused to the Insured or the Authorized Driver in the consequence
of any alleged action or omission of the Company in connection with such defence, settlement or proceedings or of the
Company relinquishing such conduct. Nor shall the Company be liable for any costs or expenses whatsoever incurred
by the Insured, the Authorized Driver or any claimant or other person after the Company shall have relinquished such
conduct.

GENERAL CONDITIONS

1. Multiple sources of insurance and other insurance:

If the vehicle is insured under same type of insurance from more than one company, the Company is committed to
pay only a share of the compensation or expenses or fees equivalent to the proportion of insurance amount over the
aggregate of all insurance amounts combined, but in case there is any another type of insurance covering the same
liability or expenses (such as the availability of a comprehensive insurance policy), the Company shall be responsible
to cover that liability, or expense to third parties, and shall be subrogated by the Insured to claim from other insurance
companies to pay their share relative to that claim.

2. Change:
The Insured must notify the Company in writing within ten working days of any material change stated in the insurance
proposal form, and the Company must notify the Insured within three working days from the date of receipt of the
mentioned notice in case of rejection of insurance coverage.

3. Company’s right to handle legal proceedings and settlements:

The Company has the right to:

A) Represent the Insured or Driver in any investigation or interrogation relating to any claim that is subject of
indemnification under this Policy.
B) Handle any defense procedures to defend the Insured or Driver before any judicial body relating to any claim or
accusation concerning any event that may be the subject of indemnification under this Policy.

4. The insurer’s right to include the insured’s name in the system of the company authorized to collect consumer
credit information: The insurer has the right to include the name of the insured in the system of the company
authorized to collect consumer credit information if the insured defaults on insurance premiums.

5. The obligations of the Insured or Driver when an accident occurs covered under this Policy:
A. To inform the authorities as soon as possible of any accident covered under this Policy, and not to leave the scene of
the accident until the completion of the proceedings, with the exception of cases that require leave from the scene of the
accident such as a bodily injury or waiting for more than two hours.
B. To not acknowledge responsibility in order to cause damage to the Company, or to pay or promise to pay any amount
to any party of the accident prior of obtaining a written consent from the Company.
C. To cooperate with the Company, and to provide the Company with all legitimate documents (power of attorney) to
enable it to handle the legal proceedings and settlements on behalf of the Insured or Driver if the Company wishes to do
so.
D. The Insured must take all necessary actions at Company’s expenses to ensure the Company›s right to collect any
amount payable from any other party as a result of a compensation paid under this Policy.

6. The Company›s obligations in the event of delay in settling a claim with complete documents:
The Company is committed to compensate the beneficiary of coverage contained in this Policy for any expenses
incurred as a result of not using the damaged vehicle due to delay in settlement of the claim for more than fifteen days
from the date of completion of the claim documents, and unable to provide logical reasons of the delay in payment of

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 Fleet Commercial Vehicle Comprehensive Insurance Policy
compensation.

7. Fraud
The rights resulting from this Policy shall be waived, if submitted claim involves any type of fraud, or if the Insured
or Driver or their representatives or the third parties have used any fraudulent methods or means for purpose of
obtaining any benefit under this Policy, or if the resulting liability or damage is a result of deliberate act committed by
the Insured or Driver or a third party or in collusion with any of them. The Company has the right to recourse against
any party, whether participant or conniver, which is found responsible for this fraud and the Company, is committed to
compensate the third party if in good faith.

8. Cancellation
Neither the insurer nor the insured has the right to cancel this Policy after its issuance, except in the following situations:
A. The write-off of a vehicle’s register.
B. Transfer of ownership of a vehicle to another owner.
C. The existence of an alternative policy that covers the remaining term of the insurance policy to be cancelled.

The insurer shall refund the insured the due amount payable for the uncovered period by depositing the remaining
amount to their bank account via IBAN, within three working days from the date on which the insurer becomes aware of
the occurrence of any of the cases mentioned above. The due amount payable to the insured for the uncovered period
is calculated by subtracting the elapsed days from the total policy term (in days) and then dividing the result by the total
policy term. The result is then multiplied by the insurance premium less administrative fees (a maximum of SAR 25) to
determine the return premium:

(365 − elapsed days) /365 × insurance premium less administrative fees (a maximum of SAR 25) = return premium.

The insurer is exempted from its obligation to pay the due amount in the case that there is a claim—related to the policy
to be cancelled and the exact vehicle covered by the policy—with a value exceeding the amount to be refunded as per
the calculation formula mentioned above.

Notwithstanding the foregoing, insurers, insureds and drivers shall remain bound by the provisions of this Policy with
respect to the obligations arising prior to its cancellation.

9. The issuance of the Policy and notice of renewal:

The Company has no right to issue this Policy unless it is connected electronically with Najm Insurance Service
Company’s system. And the Company shall notify the Insured in respect of the expiry date of the Policy, two weeks prior
to expiry date, in order to enable the Insured to renew it or obtain a policy from another company.

10. Jurisdiction and applicable laws:

a. Any dispute that arises concerning this Policy shall be subject to laws and regulations in force in the Kingdom of
Saudi Arabia and shall be settled by the Committees for Resolution of Insurance Disputes and Violations, as set forth
under Article 20 of the Cooperative Insurance Companies Control Law promulgated by Royal Decree No. (M/32) dated
02/06/1424H.
b. Any dispute arising concerning this Policy shall not be looked into after the lapse of five years from the occurrence of
the incident forming the basis of the claim, and of which the parties concerned are aware, unless the Committees for
Resolution of Insurance Disputes and Violations are satisfied with the reason for considering the claim.

11. Interpretation
This Policy and the Schedule shall be read together as one contract and any word or expression to which a specific
meaning has been attached in any part of this Policy or of the Schedule shall bear such specific meaning wherever it
may appear.

12. Notice
Every notice or communication to be given or made under this Policy shall be delivered in writing to the Company.

13. Due Care

The Insured shall take all reasonable steps to safeguard the Motor Vehicle from loss or damage and to maintain the
Motor Vehicle in efficient condition and the Company shall have at all times, free and full access to examine the Motor

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 Fleet Commercial Vehicle Comprehensive Insurance Policy
Vehicle or any part thereof or any driver or employee of the Insured. In the event of any accident or breakdown the Motor
Vehicle shall not be left unattended without proper precautions being taken to prevent further loss or damage and if the
Motor Vehicle be driven before the necessary repairs are effected any extension of the damage or any further damage to
the Motor Vehicle shall be excluded from the scope of the indemnity granted by this Policy.

14. Arabic To Prevail

In the event of conflict or difference in meaning between the Arabic and English texts in this Policy the Arabic text shall
prevail

Signed for and on behalf of

Aljazira Takaful Ta’awuni Company

Authorized Signatory
Date:
Company Seal

Memoranda

1. Young/Novice Driver Excess

Notwithstanding anything herein contained to the contrary, it is hereby under-stood and agreed that in the event of any
claim arising under Section I of this Policy whilst the motor vehicle is being driven by:

a) any person under the age of 21

b) any person who is the holder of a learner’s driving license
c) any person who is the holder of a full driving license which has been in force for less than one year

the Insured in respect of each and every event shall be responsible for the first SR1000 hereinafter known as the
«Excess» (or any less expenditure which may be incurred) of any expenditure for which provision is made hereunder it
being understood that in relation to any such claim the above amount shall apply in addition to any other amount which
the Insured may be responsible under the terms of the Policy.

Provided that:

i. If the expenditure incurred by the Company shall include the amount for which the Insured is responsible hereunder
such amount shall be repaid by the Insured to the Company forthwith.

ii. The above Excess shall not apply to loss or damage caused by fire external explosion self- ignition burglary lightning
housebreaking or theft.

2. Cover whilst driven by a Motor Trader

Notwithstanding anything contained to the contrary in the Limitations as to use it is hereby understood and agreed that
subject otherwise to the Terms of this Policy, the insurance granted hereby shall be operative but only so far as it relates
to the Insured whilst the motor vehicle is in the custody or control of a member of the Motor Trade for the purpose of
overhaul upkeep or repair

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 Fleet Commercial Vehicle Comprehensive Insurance Policy

Terms and Conditions of Cooperative Insurance

In accordance with Sharia Supervision Board Resolution No. (03), the company is committed to the following: -

General Terms and conditions:

1. The Company will maintain accounts for insurance operations separate from the shareholders’ accounts in
accordance with the Implementing regulations provisions of the Law of Supervision of Co-operative Insurance
Companies.
2. The Company undertakes to invest all funds, whether relating to shareholders or the policyholders strictly in
accordance with the rules of Shariah principles and in consistent with the Company Investment policy approved by the
Saudi Central Bank. The Company will add or subtract the investment return of the policyholder’s invested funds, and
subtracting the general expenses related to the policyholder’s portion of the investment activities.
3. The Company, as the insurance administrator, will manage the insurance operations in favour of the policyholders. In
case of net surplus in the insurance operations’ account, it will be distributed in the following way
a. Ten percent (10%) of the annual net surplus shall be distributed to the policyholders directly or in the form of reduction
in premiums for the next year.
b. From the remainder, if any, an amount equal to )5%) of the total written premiums shall be carried forward to the
shareholders’ account as a fee against the Company’s management of the insurance operations and investment in
favour of the policyholders. This management fee shall not exceed 90% of the net surplus
c. From the remainder, if any, following the distribution referenced (a) and (b) above, Company shall carry forward (10%)
of the net surplus to the shareholders’ account as performance incentive.
The Company may maintain the remainder of net surplus, if any, in the policyholders’ account or distribute it wholly or
partially to the policyholders following approval by the Saudi Central Bank and the Company’s General Assembly.

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