Selling extended warranty without a license.. The Insurance Authority warns: a fine and imprisonment of two million riyals
The Insurance Authority announced that offering or selling the “extended warranty” product outside the framework of licensed insurance companies constitutes a clear violation of the cooperative insurance companies’ monitoring system.
Penalties of up to two million riyals and imprisonment
The Authority clarified that practicing any insurance activity without a license exposes violators to a fine of up to two million riyals, or imprisonment of up to four years, or both penalties, in addition to regular procedures.
Extended warranty: additional protection after expiration. Basic Warranty
The Authority indicated that the “extended warranty” covers repair or replacement costs for various products such as cars, appliances, and equipment, which reduces the financial burden on consumers.
Monitoring violations in the market
The Authority indicated that it monitored violations represented by a number of car dealerships and retailers providing the product without a license, as part of its efforts to follow up on the market’s compliance with regulations and instructions.
Enhancing stability and transparency in the market. Insurance
The Authority confirmed that the measures come to enhance the stability of the insurance market, raise the level of transparency, protect the rights of beneficiaries, and enhance confidence in the sector.
A Call for Compliance and Reporting Violations
The Authority called on all establishments to adhere to the regulations, and urged individuals and entities to report any violating practices through approved official channels.
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