Skip to main content

SR3,000 fine for renting out vehicle without insurance

 

SR3,000 fine for renting out vehicle without insurance

June 05, 2022
SR3,000 fine for renting out vehicle without insurance

Saudi Gazette report

RIYADH — 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.”

Comments

Post a Comment

Popular posts from this blog

Saudi Arabia raises white land tax to 10%, introduces annual levy on vacant properties

  May 01, 2025 The amendments unify the tax application stages, with the annual tax now covering individual or combined landholdings of 5,000 square meters or more within designated urban zones. Saudi Gazette report RIYADH —  Saudi Arabia has approved amendments to its White Land Tax Law, raising the annual levy on undeveloped land from 2.5% to 10% of its value and introducing, for the first time, an annual tax on long-vacant properties without justified use. The changes, passed during Tuesday’s Cabinet session, are aimed at boosting property development and increasing housing supply, as the government works to address rising real estate prices. The Ministry of Municipal and Rural Affairs and Housing announced plans to offer housing units across various regions in partnership with private developers, priced between SR250,000 and SR1.2 million. The initiative targets raising Saudi homeownership to 66% this year, according to Minister Majed Al-Hogail during a recent government p...
Read more

Commerce Ministry unveils updated digital commercial registration with QR code access

May 25, 2025 Commerce Ministry unveils updated digital commercial registration with QR code access Saudi Gazette report RIYADH — The Ministry of Commerce has introduced a redesigned digital commercial registration (CR) certificate for businesses in Saudi Arabia, featuring a more streamlined format and improved data accessibility. The updated CR now consists of a single-page electronic certificate containing all relevant business information. Users can instantly access detailed data by scanning a QR code displayed on the left side of the certificate. This update coincides with the implementation of the new Commercial Registry Law and its executive regulations. Among the key changes is the transition to a unified national CR per establishment, consolidating all activities under one license regardless of geographic location within the Kingdom. The revised system also eliminates the traditional expiration date for the CR. Instead, businesses are now required to electronically confirm their...
Read more

MHRSD: Minimum 10-day paid leave mandatory for employees performing Hajj for first time

 May 01, 2025 The Ministry of Human Resources and Social Development clarified that the Labor Law allows employees to avail of paid leave to perform Hajj once in their service period if they have not previously performed it. The Ministry of Human Resources and Social Development clarified that the Labor Law allows employees to avail of paid leave to perform Hajj once in their service period if they have not previously performed it. Saudi Gazette report RIYADH — The Ministry of Human Resources and Social Development emphasized that Hajj leave must not be less than 10 days and not more than 15 days, including Eid al-Adha holiday, for those employees performing the annual pilgrimage of Hajj for the first time. In a statement marking the beginning of the Hajj season, the ministry clarified that the Labor Law allows employees to avail of paid leave to perform Hajj once in their service period if they have not previously performed it, provided they have completed at least two consecutive...
Read more