The General Administration of Insurance Supervision of the Central Bank of Saudi Arabia “Sama” obligated insurance companies to clarify the eligibility of the third party to obtain compensation for the amount of value-added tax and to explain the mechanism of compensation for it, which is based on the repair costs issued by the authority concerned with assessing vehicle damage, in addition to Compensation for the amount of value added tax according to the repair invoices issued by the relevant authority.
The Central Bank said that the announcement of the circular comes from its keenness to ensure the fairness of the compensation mechanism for the third party in accordance with the provisions related to value-added tax issued by the competent authorities, according to the Saudi newspaper, “Al-Youm”.
It is noteworthy that the Cooperative Insurance Companies Control Law issued by Royal Decree No. (M/32) dated 2/6/1424 AH to the Saudi Central Bank is responsible for regulating the insurance market in the Kingdom, monitoring it and supervising companies operating in the sector.
The Saudi Central Bank has designated the General Department for Insurance Supervision to achieve this goal, and the number of insurance and reinsurance companies privatized by the Saudi Central Bank is about 30.