Insurance Disputes Committee in Saudi Arabia: Claims and Appeals

Your comprehensive motor policy covers your car for SAR 85,000. A flash flood damages it, you file the claim, and a month later the insurer replies: "Rejected. The damage was caused by negligent driving into the flood path." You think the rejection is wrong. Do you go to court? And who decides between you and the insurance company?

The direct answer: a dispute arising from an insurance contract does not start in court. It goes to the Committees for the Resolution of Insurance Disputes and Violations: primary committees, with an Appeal Committee whose decisions are final (Articles 20 and 22 of the Cooperative Insurance Companies Control Law). Their General Secretariat now reports to the Insurance Authority, and new procedural rules were published in the Official Gazette (Umm Al-Qura) on 19/12/1447H (5 June 2026). You must file within five years of the date the amount became due, attach proof that the insurer rejected your claim or that the settlement period has passed, and you can appeal within 30 days.

Which body decides insurance disputes in Saudi Arabia today?

Article 20 of the Cooperative Insurance Companies Control Law, as amended by Royal Decree M/12 of 1443H, allows the Council of Ministers to form one or more primary committees to decide all disputes arising from insurance contracts. Article 22 creates an Appeal Committee that hears objections to their decisions; its decisions are final. When the Insurance Authority was created, Council of Ministers Resolution No. 85 dated 28/1/1445H placed the General Secretariat of these committees under the Insurance Authority, and the Authority took over the Central Bank's (SAMA) powers over the insurance sector.

Procedure is governed by the new Rules and Procedures of the Committees for the Resolution of Insurance Disputes and Violations, published on 5 June 2026. They replace the earlier rules issued by Council of Ministers Resolution No. 190 of 9/5/1435H (Article 46).

What does the committee hear, and what goes elsewhere?

• Your dispute with your insurer under your own policy: comprehensive or compulsory motor, medical, property and similar cover.
• Your claim as an injured third party against the at-fault driver's insurer, and claims between an insurer and others after it pays and steps into the insured's place (subrogation).
• Disputes between clients and insurance support service providers, such as brokers and agents.
• Disputes between insurers, reinsurers and insurance support service providers.
• Grievances against regulatory penalties and measures within 30 days of notification, and licence cancellation decisions.

Anything that is not a dispute over an insurance contract stays outside. A claim against the at-fault driver personally, for loss the insurance does not cover or because he has no insurance, goes to the courts that hear traffic accident cases (Article 67 of the Traffic Law). A criminal complaint about insurance fraud follows the criminal route.

Must I complain to the insurance company first?

In practice, yes. The rules require the claimant to attach proof that the insurer rejected the claim, or proof that the period set for settling the claim has passed (Article 5(1)(g)). Under the Unified Compulsory Motor Insurance Policy, for example, the insurer must settle within 15 working days for individuals and 45 working days for companies from receiving the complete claim file (Article 7(2)). Keep the claim number, the date your documents were complete and the written rejection.

What is the deadline to file an insurance claim?

Royal Decree M/275 dated 1/12/1447H sets a clear limit: an insurance dispute cannot be heard after five years from the date the claimed amount became due, unless the committee accepts an excuse. The due date is fixed by the applicable regulations and instructions or by the parties' agreement. The committee does not apply this limit on its own initiative; a party or an interested person must ask for it.

After registration, the time limits are short: the insurer replies within 15 days of notification, you reply within 15 days, and each period can be extended by 15 days on a reasoned request (Article 12). The primary committee should decide within 90 days of registration (Article 19). Days under the rules are calendar days including holidays, counted by the Gregorian calendar; if the last day is an official holiday, the deadline moves to the next working day (Articles 1 and 42).

How do I file, and what do I attach?

1. Submit a signed statement of claim through the General Secretariat of the committees, electronically or manually as available (Articles 5 and 44).
2. Include your name, ID number and contact details, the insurer's name and commercial registration number, and your requests with a specific amount and their legal basis.
3. Attach the policy and schedule of cover, the rejection letter or proof that the settlement period has passed, the accident or medical report, invoices and repair estimates.
4. Do not combine unrelated requests or unrelated contracts in one claim (Article 5(5)).
5. Watch your phone and email: notices by SMS, email and national address are legally effective, and you must inform the Secretariat of a new address within two days (Article 10).

When the claim is registered, the Conciliation Centre offers settlement. Conciliation is optional: if you accept the outcome, the committee approves the settlement record; if not, your case continues (Article 8). Proceedings are mainly in writing, and the committee may hear the parties in person or remotely (Article 3). Representation follows the Law of Advocacy (Article 9).

In the flood case, the insurer relied on "negligence". The insured asked for the rejection in writing and collected photos of the site, the weather alerts, the official accident report (which did not mention driving into the flood path) and the repair estimate.

He claimed SAR 85,000 plus the costs of the case; the committees may decide requests to be compensated for case costs (Article 18(2)). The decision went in his favour, the insurer did not appeal within 30 days, and the decision became final.

How do I appeal, and when is the decision enforced?

Either party can appeal a primary committee decision to the Appeal Committee within 30 days starting the day after notification of the decision (Articles 27 and 31(2)). The appeal must state the decision, the grounds and your requests; new requests are not accepted on appeal (Articles 32 and 34). The Appeal Committee decides within 60 days from the day after the appeal is filed unless it extends this, and normally decides the merits itself (Article 34(4)-(6)). Its decision is final, subject only to a petition for reconsideration in the cases allowed (Article 37).

A primary decision cannot be enforced until it is final: when the appeal period passes without appeal, or when the parties accept a settlement before the committee (Articles 28(2) and 33). It is then enforced by the Enforcement Court: Royal Decree M/237, which issued the new Enforcement Law, provides that enforcement courts enforce decisions of quasi-judicial committees under the new law (Item 4).

The new Enforcement Law takes effect around 28 October 2026 (Article 65). From then, if 5 working days pass after the debtor is notified of the enforcement order without payment, the credit bureau is notified and assets are attached, and the court may impose a daily fine of up to SAR 5,000 (Article 18).

Practical steps for both sides

If you are the insured or the injured party:

• Ask for the reason for rejection in writing, with the claim number.
• Record the date your documents were complete; the settlement period runs from it.
• State a specific amount and the policy clause you rely on before filing.
• Do not leave the file for years; the five-year limit runs from the due date.
• If you disagree with the decision, appeal within 30 days from the day after notification.

If you are an insurer or broker:

• Give the specific clause behind any rejection; a general reply weakens your position.
• Reply to the claim within 15 days, or ask for an extension with reasons before the period ends.
• Take the Conciliation Centre seriously; an early settlement costs less than a decision plus costs.
• If you rely on the five-year limit, raise it expressly; the committee will not apply it by itself.

If your insurer has rejected your claim and you want to know whether it is worth taking to the committee, send us the policy, the rejection letter and the accident report on WhatsApp and we will review them with you before you file.

This is general information based on the official Arabic texts of Saudi laws, which prevail over any translation. It is not legal advice for your specific case.