Instructions for the Principles of Practicing the Profession
**Instructions on the Principles of Professional Practice and Necessary Controls for Insurance Companies to Deal with their Clients in a Fair and Transparent Manner for the Year 2025**
**Article (1)**
**Title**
These instructions shall be named "Instructions on the Principles of Professional Practice and Necessary Controls for Insurance Companies to Deal with their Clients in a Fair and Transparent Manner for the Year 2025". They are issued pursuant to the provisions of Paragraph (Y) of Article (24) and Paragraph (B) of Article (109) of the Insurance Business Regulation Law No. (12) of 2021, and shall be effective as of 10/4/2025.
**Article (2)**
**Definitions**
A. The words and expressions contained in these instructions shall have the meanings specified for them in Article (2) of the Insurance Business Regulation Law No. (12) of 2021, unless the context indicates otherwise.
B. For the purposes of these instructions, "Client" means every person to whom the Company offers or provides its products or services.
**Article (3)**
**Insurance Company's Obligation Towards its Clients**
The Insurance Company shall adhere to transparency and fairness in its dealings with its clients, whether such dealings are conducted directly with the Insurance Company or through any of the insurance service providers contracted by the Company for this purpose. This obligation begins from the pre-contractual stage and continues until the termination of the contract, the fulfillment of all obligations arising therefrom, and any other insurance services related to the insurance contract, while observing the following:
A. Client requirements and needs when developing, marketing, and selling insurance products, and taking sufficient measures to mitigate any risks related to the sale of insurance products or services that are unsuitable for clients' needs.
B. Providing the Client with accurate, clear, and sufficient information about the insurance contract and the insurance coverage provided thereunder.
C. Providing appropriate advice and guidance to the Client, enabling them to understand the insurance products, services, and coverages provided.
D. Obtaining only the data necessary to provide the service, clarifying the justification for obtaining it if possible, using that data lawfully and in accordance with the prevailing legislation, and taking all measures and procedures that ensure data protection and confidentiality.
E. All correspondence between the Company and its clients shall be duly documented.
**Article (4)**
**Policies**
The Board of Directors of the Insurance Company shall, at a minimum, adopt the following policies, which shall be reviewed annually or as needed, and compliance with their provisions shall be monitored:
1. Claims Settlement Policy.
2. Data Protection and Information Confidentiality Policy, in line with the prevailing legislation.
3. Customer Complaint Handling Policy and the necessary procedures for dealing with them.
**Article (5)**
**Continuity of the Insurance Offer**
The Insurance Company shall commit to continuing to provide the insurance offer made to the Client for the period specified therein. If the period is not specified, it shall be bound by the offer for a period of (15) days from the date of its submission.
**Article (6)**
**Insurance Application**
A. The Insurance Company, when preparing the insurance application form, shall adhere to all of the following:
1. Wording the questions and information in the insurance application form in a clear and understandable language, and granting the Client sufficient time to review it and clearly answer all inquiries contained therein.
2. Stating the importance of providing the information related to the subject matter of insurance, type of insurance, or the required branch of insurance contained in the insurance application form for the purpose of issuing the insurance contract, alerting the Client to the necessity of correct and sufficient disclosure of that information and other essential information, and stating the legal consequences of non-disclosure or disclosure of information that does not reflect the reality.
3. Including all data necessary for risk assessment.
4. Disclosing any other services provided by the Insurance Company separately from insurance services and the cost of providing them.
5. Including a statement in the insurance application form advising the Client of the necessity to retain documents and correspondence between them and the Insurance Company.
B. The Insurance Company, upon receiving the insurance application, shall adhere to the following:
1. Verifying that the application submitted by the Client for concluding the insurance contract is fully completed and signed by the Client directly or by their representative.
2. Obtaining the Client's confirmation of the information and data provided by them and any additional data within (10) days from the date of obtaining them or becoming aware of them, in case the Company agrees to receive the application submitted on forms other than those it approves.
3. Raising the Client's awareness of methods and ways to prevent the occurrence of the insured risk or reduce the effects of the risk if it occurs.
4. Not rejecting an insurance application or a request to renew an insurance contract without a justified reason.
5. Adhering to sound technical principles when pricing the insured risk, without exaggeration or reduction that negatively affects the Company itself or other insurance companies.
6. Not discriminating between clients of the Insurance Company regarding insurance prices, terms, or insurance coverage benefits unless justified, including reasons based on technical or actuarial grounds.
7. Providing the Client with a copy of the insurance application immediately upon completion of its filling.
**Article (7)**
**Assessment of Client Suitability**
The Insurance Company shall adopt internal procedures to assess Client suitability before selling savings insurance products and investment-linked insurance, and they shall include, at a minimum, all of the following:
1. Establishing a mechanism for assessing the Client in terms of suitability and the appropriate insurance product for them.
2. Establishing a clear mechanism for dealing with clients whose financial suitability does not match the insurance product.
3. Effective and continuous supervision of insurance agents and sales staff to enable them to analyze the Client's needs and acceptable risk level.
4. Maintaining records to facilitate the process of reviewing compliance with the procedures adopted by the Company.
**Article (8)**
**Insurance Contract**
A. The Insurance Company, when drafting the insurance contract, shall adhere to all of the following:
1. Using simple and clear language and adhering to the accurate presentation of data in the contract to enable the Client to understand its terms and provisions.
2. Not including in the insurance contract any clause that grants it the right to amend any of the contract terms unilaterally without the Client's consent.
3. Including in the insurance contract the sum insured, the insurance premium value, commissions or fees associated with the service, whether at the Client's expense or the Insurance Company's expense, and any other fees and amounts, and stipulating the deductible (excess) amount in the contract schedule or in a prominent place on the first page of the contract.
4. Highlighting exclusions and conditions that substantially affect the Client's right to the sum insured or compensation and/or that lead to the nullification of the insurance contract in a large and distinctive font, and the Client shall sign alongside them to confirm reading and agreement with their content.
5. Fixing the following information in life insurance contracts:
a. Cancellation clause.
b. Disclosure of whether the return is guaranteed or non-guaranteed.
c. Premium allocation method.
6. Including in the contract the rights and obligations of both parties, the consequences of breaching contractual obligations, in addition to the cases allowing contract cancellation and the due date for payment of benefits in case of cancellation.
B. In case of any amendment to the insurance contract, it shall be made through appendices prepared by the Insurance Company after the insured's approval of such amendment.
C. The Insurance Company shall provide the Client with a copy of the insurance contract and its appendices immediately upon conclusion of the contract, while retaining a copy signed by both parties or their legal representatives.
D. The coverage note shall remain in effect prior to the issuance of the insurance contract until the expiry of the period specified therein or until the issuance of the insurance contract, whichever is earlier.
**Article (9)**
**Renewal of Insurance Contract**
The Insurance Company, when renewing the insurance contract, shall adhere to all of the following:
A. Sending a renewal notice to the Client according to the approved means of notification at least one month before the contract expiry date.
B. Verifying that insurance contract renewal notices contain an alert to the Client about the necessity to disclose any necessary information or any material change that would affect the Insurance Company's decision to continue accepting the risk or the prices or terms initially accepted, whether the change occurred after the commencement of the insurance contract or after its last renewal.
C. Renewing the contract according to the terms and premiums specified in the renewal notice, unless any additional data emerges for the Insurance Company before acceptance of the renewal offer that would affect any of the terms or premiums agreed with the Client.
**Article (10)**
**Cancellation of Insurance Contract**
A. The Insurance Company, in case of canceling the insurance contract, shall notify the Client thereof at least (30) days before the cancellation date, unless otherwise agreed.
B. Subject to the provisions of the instructions in force regarding life insurance payment documents, the Insurance Company, in case of canceling the insurance contract, may deduct the following from the amount refunded to the Client:
1. Costs of medical examination if conducted for the Client for the purpose of concluding the insurance contract.
2. Any fees, stamps, or any amounts incurred by the Company up to the date of cancellation.
3. Changes in the unit price of the investment when calculating the amount refunded to the Client for investment-linked life insurance contracts.
C. The Insurance Company, in case of the termination of the insurance contract for any reason, shall adhere to the following:
1. Refunding any due premiums or expenses to the insured or the beneficiary within a period not exceeding (30) days from the date of termination.
2. Providing all necessary documents and information to the insured or the beneficiary upon their request.
**Article (11)**
**Submission and Settlement of Claims**
A. The Insurance Company shall adhere to all of the following:
Using clear and simple language in the claim form it adopts and clearly specifying the information required to be included by the claimant.
Adopting special forms to specify all papers and documents necessary for claim settlement according to the type of insurance, which shall be provided free of charge, and which shall clarify all available procedures and means for that, including the possibility of appointing a loss adjuster.
Guiding the claimant to fill out the claim form and the necessity of obtaining proof of their referral to the Company and submission of a claim.
Verifying that the employees responsible for claim settlement possess appropriate experience and qualification and providing them with ongoing training as needed.
B. The Insurance Company, when settling claims, shall adhere to the following:
Responding promptly upon receipt of the claim, verifying the completeness of the necessary documents and information, and informing the claimant in case of deficiencies to complete them.
Informing the claimant of the rejection or acceptance of the claim according to the approved means of notification, while committing to clarify the reasons for rejection in writing.
In case of claim acceptance and agreement on its amount; the Insurance Company shall provide the claimant with a statement clarifying the compensation value, the basis for its calculation, and the expected date of receipt.
Informing the claimant of developments related to their claim upon their request.
Not having the Client sign any document indicating the discharge of the Company's liability except upon payment of the agreed compensation amount.
C. The Insurance Company shall bear full responsibility for the coverages included in the insurance contract and the settlement of obligations arising therefrom, regardless of the extent of their coverage within reinsurance arrangements, the reinsurer's recognition thereof, or the reinsurer's delay in paying its share.
D. The Insurance Company shall not deduct any amount from the due compensation value without a legal basis.
E. The Insurance Company shall commit to implementing final judicial rulings related to the insurance contract within (7) working days from the date they become final.
**Article (12)**
**Complaint Handling**
A. The Insurance Company shall receive and handle complaints from clients, while observing the following:
Verifying the effectiveness of the customer complaint handling policy and the existence of written internal work procedures for that.
Adopting appropriate mechanisms for receiving complaints from the Head Office, branches, points of sale, and the Central Bank.
Not imposing restrictions or conditions that hinder the Client from submitting a complaint or imposing commissions and fees thereon.
Informing clients of their right to submit complaints through:
Brochures and publications at the Head Office and branches, the website, and social media.
Informing clients who are unable to read and write of their right to submit complaints.
Providing means for submitting complaints such as:
Regular mail
Email and electronic channels
Toll-free phone line (with call recording and notifying the Client thereof)
Personal attendance
Complaint boxes at the Head Office and branches
Fax
B. Adopting an electronic system or register for recording all complaints, while observing the following:
Assigning a reference number to each complaint and using it in all correspondence.
Retaining the complaint in a special register, with a confirmation of receipt that includes:
Reference number
Full name of the complainant
Contact information
Subject of the complaint
Date of receipt
Contact information of the concerned department
Recording all communications, actions, and documents in the electronic system or register.
Retaining all information for a period of at least (5) years or according to relevant legislation, whichever is longer.
C. Establishing a specialized organizational unit for handling complaints, with commitment to:
Providing qualified staff trained in dealing with complaints and familiar with relevant legislation.
Handling complaints without discrimination, effectively and fairly.
Designating a liaison officer with the Central Bank and a substitute, and informing the Central Bank of any changes.
Not linking the unit to general inquiry services about insurance services.
D. Following up on and studying complaints, as follows:
Assessing the complaint and taking the appropriate decision within (10) extendable working days, with a statement of reasons.
Notifying the complainant of the result in a simple, clear, non-technical, and unambiguous language.
Conducting a comprehensive periodic analysis of complaints to identify recurrence and impact and taking corrective actions.
Submitting a periodic report to the Compliance Department and a copy to senior management, including:
Number of received complaints
Number of resolved complaints
Value of paid compensations
An annual report submitted to the Central Bank.
A summary of the results published in the annual report and on the website.
**Article (13)**
**Submitting a Complaint to the Central Bank**
The Client may submit a complaint to the Central Bank after referring to the Insurance Company, in the following cases:
A. The Insurance Company's response to the complaint was not convincing.
B. The Insurance Company did not respond to the Client within the maximum period specified in these instructions.
C. The Insurance Company refused to receive the complaint.
**Article (14)**
**Conflict of Interest**
The Insurance Company shall take sufficient and appropriate measures to avoid any potential conflict between the interests of clients and its own interest, as follows:
A. Verifying that the incentive and reward policy adopted for its employees does not lead to inappropriate sales or behavior harmful to the Client's interest or the provision of non-neutral advice.
B. Working to manage identified conflict of interest situations properly and disclosing them according to the policies adopted by the Insurance Company.
**Article (15)**
**Insurance Company's Website**
The Insurance Company shall adhere to all of the following:
A. Ensuring that all information related to the products and services provided through its website is displayed clearly, accurately, and updated.
B. Committing to transparency in raising client awareness and informing them of the nature of electronic operations, stating their risks and resulting obligations, with clear guidelines and instructions in this regard.
**Article (16)**
**Publicity and Advertising**
Insurance companies shall adhere to the instructions in force issued by the Central Bank regarding financial consumer protection to the extent applicable to them, including controls on advertisements for products, services, and awards offered by financial and banking service providers.
**Article (17)**
**Clients with Disabilities**
Insurance companies shall adhere to the instructions issued by the Central Bank regarding financial consumer protection to the extent applicable to them, including the instructions in force for the protection of financial consumers with disabilities.
**Article (18)**
**Business Continuity Plan**
The business continuity plan to face events that may negatively affect the business of the Insurance Company shall include, at a minimum, all of the following:
A. Commitment to transparency and fairness in dealing with clients.
B. Providing an alternative and appropriate mechanism to ensure business continuity, non-delay in providing insurance services, and fulfillment of the rights of the insured and beneficiaries.
**Article (19)**
**General Provisions**
For the purposes of these instructions, any of the following shall be considered approved means of notification:
1. Written notification.
2. Email and the electronic channels of the Insurance Company.
3. Text messages via mobile phone.
4. The electronic account created for the Client on the Sanad application.
5. Any other means approved by the Governor for this purpose.
**Article (20)**
**General Provisions**
The Insurance Company shall adhere to the following:
A. Preserving any funds or rights it holds on behalf of the Client.
B. Maintaining sufficient records to prove its compliance with the provisions of these instructions, including a statement of the services that the Insurance Company refused to perform, accept, or renew, with clarification of the reasons for refusal or abstention, and the operations it terminated due to the Client's breach of their obligations.
C. Publishing these instructions on the Company's website.
**Article (21)**
**General Provisions**
A. The Insurance Company shall regularize its situation in conformity with the provisions of these instructions within (90) days from the date these instructions come into effect.
B. Notwithstanding the provisions of paragraph (A) of this Article, the Insurance Company shall regularize its situation no later than 30/4/2026 regarding the adoption of an electronic system or register for recording all complaints and the establishment of a specialized organizational unit to handle client complaints, in implementation of the provisions of paragraphs (B and C) of Article (11) of these instructions.
**Article (22)**
**General Provisions**
The Governor may issue the decisions necessary for the implementation of the provisions of these instructions.
**Article (23)**
**Repeal**
The Instructions on Professional Practice Rules and Ethics for Insurance Companies No. (9) of 2004 and its amendments are hereby repealed.
**Board of Directors of the Central Bank**