Cancellation Conditions
Neither the insurer nor the insured has the right to cancel this Policy after its issuance, except in the following situations:
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.
Policy Cancellation Steps