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Following a deadly fuel tank explosion in the capital city of Riyadh in late 2012, local authorities decided to ensure adequate protection was put in place for the general public when major incidents occur.

Through the work of the General Directorate of Civil Defense of Saudi Arabia, the authority responsible for the protection of the Saudi Arabian population from events such as fire hazards and natural disasters, and the Saudi Arabian licensing regime, a new law requiring certain businesses to place compulsory third-party liability insurance came into force February 21, 2014.

Although the law was initiated in late February, it has yet to be fully enforced by local authorities. The Civil Defense is currently working with SAMA, the Insurance regulator in Saudi Arabia, to finalize the law. SAMA has already begun consulting with the local marketplace, and further updates are expected within the next three to six months.

In this article, we take a look at several key features of the law that have already been agreed upon.