المملكة: Urgent 30-day deadline.. “Insurance" It prevents the immediate cancellation of documents in the event of payment default

The Insurance Authority proposed a draft amendment to the regulations governing , with the primary aim of protecting the rights of individual insureds, by explicitly excluding them from the application of financial clearing mechanisms.

The project, currently presented on the “Esta’aa” platform, aims to"to establish a fair balance between the interests of insurance companies and the rights of customers, by establishing clear and organized controls for clearing operations, the application of which is limited to documents of companies and commercial establishments that comply with regulatory conditions.

The Authority explained that these amendments come in line with Controlsmentioned in Article "281" of the civil transactions system, as it is based on organizing clearing according to legal principles that guarantee justice and transparency.

The legislative proposal stipulated that clearing be permitted "Between companies" The presence of corresponding debts, provided that each debt is due for payment, uniform in type and character, free of any dispute, and capable of being claimed and seized, to ensure the integrity of financial transactions and limit any exploitation.

In a related context, the amendments stressed the need for insurance companies not to provide “excessive credit.”" For customers, it required prior and clear agreement on the mechanism for paying premiums, with the obligation to stipulate this mechanism in writing within the insurance document itself.

To protect the rights of both parties, the proposal gave the insurance company the right to cancel the policy if the premiums were not paid on time, but obligated it to first warn the customer and give him a grace period of no less than thirty days before proceeding with the final cancellation.

The amended regulations also emphasized the principle of complete separation between insurance premiums and the resulting payments. Regarding the settlement of claims, as the installments may not be used as compensation or consideration for any other amounts owed to the customer.

The amendment excluded cases in which the insured agrees "From the corporate category" In writing, a set-off is made between the installments owed and the company’s dues, provided that all the regulatory conditions for the debts apply to them, and in a way that does not harm the rights of others.