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Comprehensive Private Motor Insurance Policy “Al-Shamel”

Thank you for choosing Tawuniya Al-Shamel Insurance Policy” is composed of the following: • Policy Terms and Conditions, which are included in this booklet • Policy Schedule • Bail Bond • Endorsements (if any) All documents relating to this Policy should be perused carefully to understand the size of cover provided under the Policy and to become well aware of the conditions and exclusions applied. The Proposal completed and signed by the Insured or his legal representative, this Policy including its terms, conditions and exclusions, limits of cover, the Policy Schedule, Bail Bond and any endorsements agreed upon in writing and duly signed during the Policy validity date shall form an integral part of this Policy.

This Policy is 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 in this respect and the decision issued by the Council of Ministers as per No. 222 dated 13/08/1422H for motor vehicles compulsory insurance. In accordance with its Articles of Association as Tawuniya (hereinafter called "the Company") may from time to time decide to distribute to the Policyholders all or part of any annual surplus arising from the insurance operations. The amount, time and manner of and eligibility to such distribution are subject to the rules and regulations as are or may be laid down by the Company's Board of Directors.

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The Insured having applied to Tawuniya (hereinafter called "the Company”) by a Proposal and a written declaration to insure the private motor vehicle and agreed to consider them the basis of this contract and integral part hereof; and having paid the Contribution required and declared that he perused all terms, conditions and exclusion of this Policy, the Company has hereby issued this Policy in accordance with the following:

Definitions This Section contains the definitions of some words and expressions used in any of the Policy documents. The following words, phrases and expressions, wherever they appear in this Policy, shall have the meanings, which are given below: “Company or Insurer” – means Tawuniya. “Insured” – means the natural or judicial person whose name is listed in the Schedule. “Proposal” – means the Form completed by the Insured which information constitutes the basis of the contract and is considered an integral part of this Policy. “Policy Schedule” – means the schedule attached with the Policy in which the limits of cover, period of insurance, conditions and details of Motor Vehicle and extensions of cover are indicated. “Period of Insurance” – means the period during which the insurance cover provided by this Policy is in effect. “Motor Vehicle” – means the motor vehicle stated in the Schedule. “Authorized Driver” – means any person stated in the Schedule and permitted to drive or use the Motor Vehicle by permission of the Insured.

“Policy” – means the insurance booklet, Proposal, the Schedule, Insurance Certificate, Bail Bond and Endorsements.

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“Bail Bond” – means the certificate issued by the Company upon issuing the Policy to the Insured. It is used, subject to the terms of this Policy, as a guaranty deed in case of third party liability in order to release the detained Insured and prevent his detaining by the Police authorities. “Deductible” – means the amount, which is borne by the Insured for each and every damage/ loss. The Company liability commences after using up the deductible and is only effective to Section (1) of the Policy. “Depreciation” – means the decrease in the Motor Vehicle’s value as a result of use, passing of a period of time or technical prescription and appearance of modern inventions. “Insured Value” – means the Motor Vehicle’s value as determined by the Insured upon submitting the Proposal. “Market Value” – means the value at which the Motor Vehicle is sold in the market. The market value is changes according to Motor Vehicle’s condition and supply and demand. “Extension” – means the insurance cover added by the Insured to the basic cover against the payment of an additional contribution. “Temporary Total Disablement” – means a disablement, which totally prevents the Insured, Authorized Driver or any of the passengers from attending to his usual business or occupation temporarily. “Permanent Total Disablement” – means a disablement, which entirely prevents the Insured, Authorized Driver or any of the passengers from attending any business or occupation of any and every kind and which lasts 52 weeks and at the expiry of that is beyond hope of improvement. “Total Loss” – means the complete loss or damage to the insured Motor Vehicle that renders its repair unfeasible technically or economically.

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Insurance Cover The insurance cover will include Section (1) and (2). Section (1 ) – Loss or Damage to the Insured Motor Vehicle 1. Scope of Cover: The Company will indemnify the Insured against accidental loss of or damage to any Motor Vehicle described in the Policy Schedule and its accessories whilst thereon resulting from any accidental and sudden accident except any act specifically stated in the Policy Exclusions. 2. Basis of Loss Settlement: The Company may at its option repair, reinstate or replace the Motor Vehicle or any part thereof or its accessories or spare parts or may pay in cash the amount of the loss or damage resulting from accidental occurrence covered under the Terms and Conditions of this Policy. a. Partial Loss or Damage: The maximum amount payable by the Company in respect of any claim for partial loss or damage shall be the reinstatement of the Motor Vehicle. This is equal to the labor cost plus the value of spare parts after deducting the amount of depreciation calculated in accordance with the “Depreciation Clause” stated hereunder, provided always that if such parts or accessories are unobtainable or outdated, indemnification for said parts or accessories shall not be in excess of either the latest manufacturer’s price list or the quoted price. b. Total Loss or Damage: The maximum amount payable by the Company in respect of any claim for total loss shall be limited to the reasonable Market Value of the Motor Vehicle at the time of occurrence, but not exceeding the insured sum of the Motor Vehicle. If the Company decides to pay to the Insured the insured sum, the depreciation amount will be deducted in accordance with the “Depreciation Clause” stated hereunder. The Company reserves the right to declare a total loss if, in its opinion, it is found that the Motor Vehicle cannot be economically repaired. When a total loss claim is payable in respect of a Motor Vehicle the annual contribution in respect of such

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Motor vehicle shall be fully earned by the Company. Furthermore, the Insured shall transfer the ownership of the said Motor Vehicle to the Company or its assignees, provided always that in case of theft, the indemnity will be affected after 30 days of the Police notifying date 3Depreciation: In case of loss of or damage to the Insured Motor Vehicle, the Company will apply the following deductions for depreciation: aIn respect of partial loss: 1If the lost or damaged spare parts are replaced with new ones or paying the new replacement value thereof, the Company will not apply any depreciation in respect of any motor vehicle less than 7 years age since manufacturing year. The depreciation will only be applicable on motor vehicles above 7 years age and the deduction ratio will be 50% of the value of new parts replacement. 2In case of replacement of new tyres, wheels and/ or wheel caps by new ones, the depreciation deduction will be 25% per each year or a part thereof, but up to 50% of the new replacement value thereof. The “Depreciation Clause” will not be applied to the windscreen, rear screen and doors screen.

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b-

In respect of partial loss: If the claim is settled on the basis of total loss of the insured Motor Vehicle, the liability of the Company shall not exceed the lesser of the following two amounts: 1- the insured value of the Motor vehicle estimated by the Insured as stated in the Policy Schedule, less 1 pct./ month or portion thereof from the insurance effective date under the Policy or latest renewal thereof, or 2- the reasonable market value of the Motor Vehicle at the happening of loss or damage.

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4.

Deductible: In case of loss or damage to the insured Motor Vehicle, the Company will apply the amount of deductible stated in the Schedule to all claims. The Insured will be relieved of paying this deducible on the condition that there is a third party involved in the accident who is entirely liable for such occurrence at 100%, the information of this party is known and written in the Police Report in such a manner that he is not escaped or unknown and that the damages sustained by the insured Motor Vehicle are estimated and stated in the Police Report. Protection and Removal: If the Motor Vehicle is disabled by reason of an accident insured under this Policy, the Company will, subject to the “Towing, Care and Protection Limit” stated in the Schedule, bear the reasonable cost of protection and removal to a safe place or the nearest workshop. Emergency Medical Expenses: The insurance cover provided under this Section includes the emergency medical expenses incurred in connection with any bodily injury to the driver or passengers of the insured Motor Vehicle, provided that such bodily injury is caused as an direct and immediate result of an accident to the Motor Vehicle covered under this Policy and up to the limit stated in the Policy Schedule.

5.

6.

Exceptions to Section (1) The Company shall not be liable for indemnity in respect of:
1. The amount stated in the Policy Schedule or Endorsements as the deductible(s) payable by the Insured in the event of a claim.

2. Any consequential loss or loss of use.

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3. Wear and tear, mechanical or electrical breakdown or failure.

4. Damage caused by overloading or strain.

5. Damage to tyres and wheels and the loss of or damage to wheel caps unless the Motor Vehicle is lost or damaged at the same time of accident covered.

6. Loss of or damage to goods and/ or personal belongings whilst being loaded unloaded or carried in/ on the Motor Vehicle.

7. Loss or damage to any trailer unless such trailer is specifically declared in the Policy Schedule.

8. Loss or damage to the Motor Vehicle as a result of theft or any attempt threat due to leaving the Motor Vehicle in operating mode, leaving the keys therein or non-closing of the doors or screens.

9. Radios, stereo equipment, telephones or other accessories other than those originally installed by the vehicle manufacturers and incorporated in the original price of the Motor Vehicle unless the make and values of such accessories are specifically declared in the Schedule.

10. Loss or damage caused by using the Motor Vehicle in unpaved streets or sand hills being driven dangerously or recklessly.

11. Damage to the Motor Vehicle caused by sandstorm.

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Section (2) – Liability to Third Parties Conditions of Section (2) 1. The Company hereby agrees to indemnify the Insured in the event of an accident caused by or arising from the use of the Motor Vehicle, subject to the limits of its liability provided for in the Schedule, against all sums which the Insured or Authorized Driver shall become legally liable to pay as indemnity to third parties in respect of:
a. death or bodily injury to any person including the Motor Vehicle’s passengers excluding the Insured personally and the Motor Vehicle’s driver at the happening of the accident and their family members, husband/wife, father & mother, children and the persons employed by the Insured if they are injured in the course of and due to the employment. The person is considered a Motor Vehicle’s passenger whether being carried in or upon or entering or getting onto or alighting from the Motor Vehicle.

b. damage to the things or property except those owned by the Insured or Motor Vehicle’s driver at the time of accident or those held in trust by or in the custody or control of the Insured or the Motor Vehicle’s driver.

1. The insurance provided under this Section, within the limits of its Terms and Conditions, is hereby extended to cover the liability of any Authorized Driver whilst he is driving the insured Motor Vehicle, provided that such Authorized driver shall, as though he were the Insured, fully observe, fulfil and be subject to all the Terms of the Policy.

2. Subject to the condition relating to determining liability provide for in the Schedule, the Company will comply with the consequential liability pronounced judicially including the claimant’s legal costs and expenses, excluding the violations and the Company will effect payment of compensation to the entitled person.

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3. In the event of death of any person entitled to indemnity under the insurance cover provided for on this Policy, the Company will in respect of the liability incurred by such person pay the due indemnity towards such person to his personal representatives in terms of and subject to the limitations of this Policy provided that such representatives shall as though they were the Insured observe, fulfill and be subject to the Terms of this Policy in so far as they apply.

4. In the event of any accident involving indemnity to more than one party, the “Liability Limits Clause” provided for in the Policy Schedule shall apply to the aggregate amount of indemnity to all parties entitled to an indemnity.

5. The Company will pay all costs and expenses incurred with its written consent.

6. The Company may, at its own option, arrange for representation at any inquest, investigations or legal cases relating to any event which may be the subject of indemnity under this Policy or fatal inquiry in respect of any death, bodily injury or damage to third parties’ property, which may be the subject of indemnity under the Terms of this Policy and to undertake the defense proceedings in any Court of Law in respect of any act or alleged offense causing or relating to any event, which may be the subject of indemnity under the Terms of this Policy.

Exceptions to Section (2) The Company shall not be liable in respect of:
1. Death of or bodily injury to:

a. any person arising out of and in the course of such person’s employment by the Insured or the Authorized Driver.

b. any person who is a member of the Insured or Authorized Driver's household (husband, wife, father & mother and children).

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2. loss or damage to the Motor Vehicle insured under this Policy or property belonging to the Insured or the Authorized Driver or held in trust by or in the custody or control of the Insured or the Authorized Driver.

3. any liability or expense directly or indirectly caused by or arising out by damage to any bridge, weighbridge or viaduct or to any road or anything beneath by vibration or by the weight of the Motor Vehicle or of the load carried by the Motor Vehicle.

4. death or bodily injury or damage caused by excess load on the Motor Vehicle or by Motor Vehicle’s loading or unloading operations.

5. any liability, which attaches by virtue of an agreement but which would not have attached in the absence of such agreement.

6. Any fines, penalties, bonds or cautions that may be imposed.

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Section (3) –Extensions
In consideration of an additional fee, the Policy cover may be extended to include the following:

1. Hire Car Facility Extension (for private vehicles category only): If the Insured adds this extension of cover and pays its additional contribution prior to occurrence of an accident, the Company will reimburse the Insured for the actual costs incurred in hiring a motor vehicle due to an accident covered in accordance with the terms of this Policy, provided that the sum of indemnity should not exceed the maximum limit for hiring a car as stated in the Policy Schedule for the period following the date of occurrence as follows:

a. In the event the Motor Vehicle is not movable due to the accident, the Company will reimburse the Insured for the actual expenses incurred for hiring a car from the accident date up to the date that repairs to the insured motor vehicle are completed, provided that the Insured should submit the claim documents to the Company within 24 hours from the time of occurrence.

b. In the event that the Motor Vehicle is movable after the accident, the indemnity will be effective from the date of handing over the motor vehicle to the workshop to the date that repairs to the motor vehicle are completed.

c. In the event of motor vehicle’s theft, the indemnity for hiring a motor vehicle will be as follows:

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1.

In case the stolen motor vehicle is not found, the validity date of indemnity will commence from the date of submitting the notification to the police and expire on the date of claim settlement.

2.

In case the stolen motor vehicle is found, the indemnity will commence from the date of submitting the notification and expire on the date that the stolen motor vehicle is found. Then paragraphs (a) and (b) of this Section will apply on the remaining period following the finding of the motor vehicle.

2. Personal Accidents Extension: If the Insured adds this extension of cover and pays its additional contribution prior to occurrence of an accident, the Company undertakes to pay compensation according to the scale and provisions stated hereunder for the injury as hereinafter described sustained by the Authorized Driver or any of the passengers specifically stated in the Schedule as a direct result of an accident to the motor vehicle described in the Schedule and caused by violent, accidental and visible means which independently of any other cause shall within 52 weeks of the occurrence of such injury result in:

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Type of cover 1. Death

Scale of Compensation (SR) 100,000 100,000

2. Total irrevocable loss of all sight in both eyes 3. Total loss by physical severance at or above the wrist or ankle of both hands or both feet 4. Total loss by physical severance at or above the wrist or ankle of one hand or one foot 5. Total and irrevocable loss of all sight in one eye 6. Total and permanent disablement from following any employment or occupation whatsoever 7. Expense incurred in respect of Medical and Surgical treatment

100,000

100,000 50,000

100,000

25,000

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Provided always that:

A.

Compensation shall not be payable to any one person in respect of benefits under (1) to (7) inclusive for more than SR 100,000 in aggregate in respect of any one accident.

B.

A person over 70 years of age at the time of the accident is not entitled to any compensation.

C.

A person under 16 year of age at the time of the accident shall receive only 50% of the Scale of Compensation with maximum aggregate of SR 50,000 in respect of one accident.

D.

Such compensation shall be payable only with the approval of the Insured or the Insured’s legal representative and directly to the injured person or his/her legal representative whose receipt shall be a full discharge in respect of the injury to such person, or to the heirs in case of death.

E.

Compensation shall only be payable in respect of injury sustained by any persons carried inside the cabin of the motor Vehicle at the time of the accident.

F.

If the number of persons (including the driver) in the cabin of the Motor Vehicle at the time of the accident exceeds the number stated as the seating capacity in the Schedule, the compensation payable with be decreased proportionally.

G.

Compensation under benefit (7) shall be restricted to treatment obtained within Saudi Arabia only. However, the Company will

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not compensate any expenses incurred directly or indirectly for psychological or psychiatric treatment.

3. Geographical Area Extension: If the Insured adds this extension of cover to include other countries other than Saudi Arabia and pays the additional contribution prior to occurrence of an accident, the coverage provided by this Policy is hereby extended to include Bahrain and/ or GCC countries and/ or Egypt, Jordan, Lebanon and Syria in respect of the motor vehicle only meant by this extension, the Company will reimburse the Insured in accordance with the Terms and Conditions of this Policy for:

a. The coverage is restricted to accidental loss or damage to the insured motor vehicle only arising out of a sudden accidental event under Section (1) of this Policy.

b. The coverage is extended to include Personal Accidents benefits, provided that such benefit should be included in the added extensions.

c. In the event of partial loss, the “Towing, Care and Protection Limit” stated in the Policy Schedule will be applied.

d. In the event of total loss, the Towing, Care and Protection Limit in respect of GCC countries will be SR 500, Egypt and SR 1500 in respect of Jordan, Lebanon and Syria (SR 1500).

e. Section (1)- Liability to Third Parties of this Policy is excluded of this coverage.

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f. Any costs relating to accommodation, meals, telephone calls in order to return and transport the motor vehicle and finalizing the accident procedures are not reimbursed

g. The exchange rate will be in accordance with the rates declared by the Saudi Arabian Monetary Agency on the date of occurrence.

4. Age Restriction Extension

If the Insured adds this extension of cover to include the drivers who are less than 24 years old and pays the additional contribution of this extension prior to the occurrence of an accident, the Company will indemnify the Authorized Driver in accordance the Terms and Conditions of this Policy as follows:

c. Including Drivers between 22-24 years of age:

Under this extension, the coverage provided by this Policy is hereby extended, only in respect of the Motor Vehicle meant by this extension, to include the drivers between 22-2 years of age and hold Driving License issued before less than one Hegira year.

d. Including Drivers 18 years of age and above :

Under this extension, the coverage provided by this Policy is hereby extended, only in respect of the Motor Vehicle meant by

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this extension, to include the drivers 18 years of age and above and hold Driving License issued before less than one Hegira year.

e. Including Drivers 17 years of age and above :

Under this extension, the coverage provided by this Policy is hereby extended, only in respect of the Motor Vehicle meant by this extension, to include the drivers 17 years of age and above and hold Driving License issued before less than one Hegira year.

5. Non Applying Depreciation Clause Extension (in case of total loss indemnity): If the Insured adds this extension of cover and pays the additional contribution prior to occurrence of an accident, the Company may, at its option, pay the total loss indemnity for motor vehicle less than 12 months of age since its manufacturing year by replacing the insured motor vehicle with a new one of the same make and model or pay its value in cash. The Company will pay the amount estimated for the motor vehicle by the Insured.

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Section (4) – Exclusions

The Company shall not be liable in respect of:

1.

any loss, damage, liability or expense caused, sustained or incurred whilst the Motor Vehicle is:

a.

outside the borders of Saudi Arabia (unless otherwise expressly stated in the Policy Schedule).

b.

being used otherwise than in accordance with the “Limitation as to Use” indicated in the Schedule.

c.

carrying passengers in excess of its licensed seating capacity if it is verified that such occurrence is caused by this breach.

d.

being driven by or is for the purpose of being driven by or in the charge of any person other than the Insured or Authorized Driver.

e.

being used for rallying, racing, pace making, reliability trials, speed testing or being driven dangerously or recklessly.

f.

being driven by any person whilst under the influence of intoxicants, drugs or medication, which should not be taken whilst driving.

g.

being driven by any person who is less than 24 years of age (unless otherwise expressly stated in the Policy Schedule).

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h.

used within any areas of airports or marine ports, which are not normally accessible to the general public.

i.

being used or operated as a tool of trade.

j.

being driven by any person who is not holding a driving license or whose driving license is not valid or does not permit him to drive such type of Motor Vehicle or where such driving license is permanently or temporary cancelled.

k.

jumping red traffic lights or driving in the wrong direction of the permitted flow of traffic by the Insured or the Authorized Driver.

2.

any liability or expense occasioned by happening through or in consequence directly or indirectly of criminal and/ or offensive acts by the Insured or Authorized driver.

3.

any liability, which attaches by virtue of an agreement but which would not have attached in the absence of such agreement.

4.

any liability or expense occasioned by happening through or in consequence directly or indirectly of:

a. war, invasion, act of foreign enemies, hostilities (whether war be declared or not), civil war; b. mutiny, military or popular rising, insurrection, rebellion, revolution, military or usurped power, martial law or state of siege or any of the events or causes which determine the proclamation or maintenance of martial law or state of siege, or acts pf terrorism committed by a person or persons acting on behalf of or in connection with any organization. For the purpose of this Exception,

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“terrorism” means the use of violence for political ends and includes any use of violence for the purpose of putting the public or any section of the public in fear; c. strike, riot, civil commotion, labor disturbances; d. confiscation, requisition, seizure, destruction or damage by order of the Government de jure or de facto or any public, municipal or local authority. 5. any liability or expenses directly or indirectly caused by or arising from or contributed to by : abnuclear weapons material, ionizing radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel and solely for the purpose of this Exception combustion shall include any self-sustaining process of nuclear fission, Storm, typhoon, hurricane and cyclone, any fines, penalties, bonds or cautions that may be imposed,

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6.

All claims arising out of this Policy shall be forfeited after the expiration of three (3) years from the actual date of an accident.

Section (5) – General Conditions 1. Interpretation The Policy, Schedule, General Conditions, any Special Conditions, Exceptions, Warranties, Exclusions and Endorsements, known collectively as the “Terms of the Policy”, shall be read together as one contract and any word or expression to which a special meaning has been attached in any part shall bear such meaning throughout.

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2. Other Insurances If at the time any claim arises under this Policy there shall be any other insurance covering the same liability or expense the Company shall be liable to pay such liability or expense provided that the Company shall have the right to take the place of the Insured against others to recover its respective ratable proportion of such claim. 3. Alteration The Insured shall give the Company within 48 hours a notice in writing of any alteration, which materially affects the specification, purpose of use and ownership of the Motor Vehicle insured or any other act that affects the judgment of the Company in deciding whether to accept a risk or not and if it decides to accept, the terms on which it will do so or premium payable. This insurance shall cease from the date of such alteration unless the Insured obtains the agreement of the Company to such alteration in writing. 4. Misrepresentation, Misdescription and Non-Disclosure This insurance shall be voidable if there had been misrepresentation, misdescription or non-disclosure of any material fact. (Definition: A material fact is one which affects the judgment of the Company in deciding whether to accept a risk or not and if it decides to accept, the terms on which it will do so. For an existing insurance it affects the Company’s judgment of whether it wishes to continue to insure the risk and if so on what terms or decline it). In case the Company pays any amounts to any party against a claim or compensation that is due, as revealed later, to an excluded cause or is not covered under this Policy, the Company shall have the right to claim the insured to refund the paid amounts. 5. Defence or Settlement No admission, offer, promise, payment or settlement shall be made by or on behalf of the Insured or the Authorized Driver without the written consent of the Company which shall be entitled, at any time and if it so desires to take over and conduct in the name of the Insured/Authorized Driver the defence or settlement of

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any claim or to prosecute in the name of the Insured/Authorized Driver for its own benefit any claim for indemnity or damages or otherwise and shall have full discretion in the conduct of any proceedings and in the settlement of any claim and the Insured/Authorized Driver shall give all such information and assistance as the Company may require such as executing powers of attorney at the Notary Public, submit any documents needed and the like. 6. Company’s Right to Legal Proceedings The Company may at its own option: a. arrange for representation at any inquest or fatal inquiry in respect of any claim, which may be the subject of indemnity under this Policy. b. undertake the defence proceedings in any Court of Law in respect of any act or alleged defence causing or relating to any event, which may be the subject of indemnity under this Policy. The Insured shall, at the expense of the Company, do and concur or doing and permit to be done all such acts and things as may be necessary by the Company for the purpose of enforcing any rights and remedies or obtaining relief or indemnity from other parties to which the Company shall be or would become entitled or subrogated upon its paying for or making good any loss or damage under this Policy whether such acts and things shall be or become necessary or required before or after his indemnification by the Company. 7. Company’s Right to Relinquish Proceedings At any time after the happening of any event giving rise to a claim or series of claims under Section (1) or Section (2) of this Policy the Company may pay to the Insured or Authorized Driver the full amount of the Company’s liability pursuant to the said two Sections and relinquish the conduct of any defense, 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 defense,

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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, Authorized Driver or any claimant or other person after the Company shall have relinquished such conduct. 8. Claims Procedure In the event of any accident, which may give rise to a claim under this Policy, the Insured shall give to the Company fifteen (15) days notice thereof with full particulars. The Company shall inspect and examine the Motor Vehicle, which is the subject of such accident not later than seventy-two (72) hours from the time of notification of such accident. Every letter, claim, writ, summons and process, ought to be advised to the Company, shall be notified and forwarded to the Company immediately on receipt. Notice shall also be given to the Company immediately the Insured shall have knowledge of any impending prosecution, inquest or fatal inquiry in connection with any such occurrence. 9. Fraud If any claim under this Policy shall be in any respect fraudulent or if any fraudulent means or devices are used by the Insured or the Authorized Driver or anyone acting on their behalf or by the third party to obtain any benefit under this Policy, all benefits shall be forfeited. The Company shall have the right to claim any of such parties whose liability on such fraud is verified, whether he is involved or conspired. 10. Cancellation This Policy cannot be terminated by the Company or Insured while being in force so long the Motor Vehicle’s Registration is still valid. However, the Policy may be terminated by the Insured if the insured Motor Vehicle's Registration has been cancelled or a new policy has been issued due to modification or transfer of the ownership of the Insured Motor Vehicle. In which case the Company will retain short period contribution for the time the Policy has been in force as indicated below. The Insured shall return to the Company all the original insurance documents. The refunded contribution shall be paid after fifteen (15) days of the cancellation request date. In which case the Company shall be

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liable to repay on demand a ratable proportion of the Contribution for the unexpired term from the date of cancellation as hereunder: Period of Insurance Minimum Proportion of Annual Contribution to be retained 12.50% 25.00% 37.50% 50.00% 62.50% 75.00% 87.50% 100.00%

Not exceeding one week Not exceeding one month Not exceeding two months Not exceeding three months Not exceeding four months Not exceeding six months Not exceeding eight months Exceeding eight months

In spite of that, the Insured shall continue to remain bound by the Terms of this Policy in connection with incurred claims. 11. Notices a) Every notice and other communication to the Company required by these conditions must be written or printed. b) The Company is under no obligation to notify the Insured of the expiry of the Policy. 12. Subrogation The Insured shall, at the expense of the Company, do and concur in doing and permit to be done all such acts and things as may be necessary or required by the Company for the purpose of enforcing any rights or remedies or of obtaining relief or indemnity from other parties (excluding the persons insured under this Policy) to which the Company shall be or would become entitled or subrogated upon its paying for or making good any loss or damage under this Policy whether such acts and things shall be or become necessary or required before or after his indemnification by the Company.

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13. Right of recourse against the person causing the accident Upon its paying any amount, whatsoever, for claims or damages which are excluded from the cover under this Policy, as subsequently verified, or if there has been fraud, forgery, deception or falsification, the Company has the right of recourse against the Insured to recover such payment. The Company also has the right of recourse against the person causing the accident if the insured Motor Vehicle is stolen or in case of any attempt theft or if the Motor Vehicle is driven by any person without having permission from the Insured. 14. Right of recourse against the Insured The Company has the right of recourse against the Insured to recover the amounts paid for any claims or damages in the following cases: a. If it is verified that the insurance is made on the basis of misrepresentation, misdescription and non-disclosure by the Insured of a material fact, which affects the judgment of the Company in deciding acceptance of the risk or insurance rates or terms. b. The motor vehicle is used otherwise than in accordance with the Limitation as to Use indicated in the Schedule; carrying passengers in excess of its licensed seating capacity; taking a load in excess of prescribed weight or which is not packed in the proper technical manner or exceeding the width, length or height permissible. c. Breaching the applicable laws if the violation involves an intentional felony or offense. d. If the Motor Vehicle’ insured driver, whether the Insured personally or any person driving on his consent, does not hold Driving License to drive such type of vehicle. e. If it is verified that the accident or bodily injury has arisen of an act committed by the Insured intentionally and premeditatedly.

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f. If it is verified that the accident is caused by taking drugs or alcoholic drinks by the Motor Vehicle’s driver, whether the insured driver or any person driving on his consent. g. If it is verified that the Motor Vehicle’s driver has broken traffic light on red or drives his motor vehicle in a prohibited street. However, the right of recourse reserved for the Company in accordance with the terms and conditions of this Policy shall be with no prejudice to the right of affected party against the Insured. 15. Multiple sources of insurance If there are other insurances from more than one insurer covering the same liability, the Company shall only be liable to pay in respect of such liability a portion of the indemnity, expense or fees equal to the ratio between the insured sum and the insured sums collectively. 16. Jurisdiction and Applicable Law This Policy and any dispute or controversy arising out of or in connection with it shall be referred to the competent committees provided for in the Saudi Supervision of Cooperative Insurance Companies Law promulgated by Royal Decree No. (M/32) dated 02/06/1424H. The laws, regulations and rules of the Kingdom of Saudi Arabia shall be applicable on such disputes or controversies. 17. All claims arising out of this Policy shall be forfeited after the expiration of three (3) years from the actual date of an accident or from the date that the Insured knew of such accident, unless a convincing reason for such delay is verified. The Company may, under endorsements to be attached with this Policy and within the terms and conditions stipulated in this agreement, insure damages other than those provided for in this Policy. Submitting the Claim Documents

18.

19.

The Insured shall submit as soon as practically possible and within a maximum 90 days of accident occurrence date all documents

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required for the claims relating to Section (1) and (2) of this Policy. The claim file will be closed decisively, in case such time limit is exceeded. 20. Reasonable Precautions The Insured shall take all reasonable steps to safeguard the Motor Vehicle from loss or damage and to maintain the Motor Vehicle in an efficient condition and the Company shall have at all times free and full access to examine the Motor Vehicle or any part thereof. 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, damage or liability and if the Motor Vehicle is 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. 21. Insured’s Obligations upon Accident Occurring a. To notify the concerned authorities (Traffic Police, Police, Civil Defense. etc) immediately and do not leave the occurrence site till their arrival. To give notice to the Company directly through the Toll Free line after occurrence of any accident, injury or damage. To give immediate notice to the Police in case of theft or other criminal act and cooperate with the Company in securing the conviction of the offender. To cooperate with the Company in all times in completing or submitting any documents or information may be required by the Company. To refrain from paying any amount to any of the parties involved in the accident and do not waive any amount due to the Insured as a result of the accident. The Insured or Authorized Driver shall also give notice to the Company immediately of any impeding prosecution, inquest or fatal inquiry in connection with any such occurrence.

b.

c.

d.

e.

f.

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g.

To bring the original Police Report, Repair Permit, copy of the Motor Vehicle’s Registration, Id. Card/ Residence Authorization Card (Iqama), Driving License (Rukhsa) and submit the same to the Claims Management Services Center and complete the relevant Claim Form. In the event of bodily injuries covered by the Policy, the Insured shall furnish the Company with the certified medical reports and all invoices and documents. In case the insured Motor Vehicle is exposed to accidental damage caused by an accident outside the Kingdom and the “Geographical Area” includes the country where the accident occurred and the Insured desires to have repair effected at the same country, the Insured shall provide the Company with all documents required as stated in sub-section (7) above along with three repair estimates from different workshops plus photographs of the damaged parts in addition to his compliance with the procedures mentioned in subsections 1 to 8 above. The indemnity will be paid in Saudi Riyal currency in accordance with the exchange rate approved by the Saudi Arabian Monetary Agency at the date of occurrence.

h.

i.

This Policy should be read carefully and if there is any doubt as to the cover or meaning of its contents, please consults the Company.