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Insurance Settlement Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Insurance Settlement Agreement

"I need an Insurance Settlement Agreement for resolving a property damage claim worth SAR 2.5 million with a manufacturing company in Riyadh, to be paid in three installments by March 2025, with specific provisions for regulatory reporting to SAMA."

Document background
The Insurance Settlement Agreement is a crucial document used in Saudi Arabia when finalizing the resolution of insurance claims between insurers and claimants. It serves as the definitive record of the settlement terms, incorporating requirements from Saudi insurance regulations, SAMA guidelines, and Sharia principles. This document is essential when parties have reached an agreement on claim resolution and need to formalize the terms, including payment obligations, releases, and any ongoing commitments. The agreement must comply with the Cooperative Insurance Companies Control Law and its Implementing Regulations, while ensuring adherence to Islamic finance principles. It typically includes detailed information about the original insurance policy, the claim circumstances, settlement calculations, and payment terms, providing legal protection for all parties involved.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including the insurer, insured, and any other relevant parties such as beneficiaries or legal representatives

2. Background: Context of the insurance claim, including policy details, incident description, and claim history

3. Definitions: Clear definitions of key terms used throughout the agreement, including technical insurance terms and Arabic/English translations where necessary

4. Settlement Amount and Payment Terms: Detailed specification of the settlement amount, payment method, timeline, and any conditions precedent to payment

5. Release and Discharge: Mutual release of claims and liabilities related to the settled matter, including scope of release

6. Confidentiality: Provisions regarding the confidentiality of the settlement terms and related information

7. Sharia Compliance Declaration: Statement confirming the agreement's compliance with Islamic law principles

8. Representations and Warranties: Statements by both parties regarding their authority, capacity, and truthfulness of information provided

9. Governing Law and Jurisdiction: Specification of Saudi law as governing law and relevant courts/dispute resolution bodies

10. Entire Agreement: Confirmation that this document represents the complete agreement between parties

11. Execution: Signature blocks and execution requirements in compliance with Saudi law

Optional Sections

1. Third Party Rights: Required when the settlement affects rights of parties not directly involved in the agreement

2. Tax Implications: Include when settlement has significant tax consequences that need to be addressed

3. Regulatory Approvals: Required when settlement requires specific regulatory clearances

4. Future Claims Provision: Include when there's a possibility of related future claims that need to be addressed

5. Language Provision: Required when agreement is bilingual (Arabic/English) to establish prevailing language

6. Installment Payment Terms: Include when settlement amount is to be paid in installments

7. Non-Admission of Liability: Optional clause stating settlement does not constitute admission of liability

8. Indemnification: Include when specific indemnification obligations need to be outlined

Suggested Schedules

1. Schedule 1 - Policy Details: Details of the original insurance policy, including policy number, coverage, and terms

2. Schedule 2 - Claim Documentation: List of all relevant claim documents, incident reports, and supporting evidence

3. Schedule 3 - Settlement Calculation: Detailed breakdown of how the settlement amount was calculated

4. Schedule 4 - Payment Schedule: If applicable, detailed payment plan including dates and amounts

5. Schedule 5 - Required Releases: Forms of any additional releases required from third parties

6. Appendix A - Powers of Attorney: Copies of relevant powers of attorney or authorization documents

7. Appendix B - Corporate Approvals: Copies of corporate approvals or board resolutions if required

8. Appendix C - Regulatory Notifications: Copies of any required regulatory notifications or approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions













































Clauses






























Relevant Industries

Insurance

Financial Services

Healthcare

Real Estate

Construction

Manufacturing

Transportation

Energy

Retail

Professional Services

Maritime

Aviation

Relevant Teams

Legal

Claims

Compliance

Risk Management

Finance

Operations

Insurance Administration

Corporate Affairs

Regulatory Affairs

Sharia Advisory

Settlement Administration

Policy Management

Customer Relations

Relevant Roles

Claims Manager

Insurance Underwriter

Legal Counsel

Compliance Officer

Risk Manager

Chief Claims Officer

Settlement Officer

Insurance Operations Manager

Policy Administrator

Corporate Counsel

Insurance Broker

Claims Adjuster

Sharia Compliance Officer

Chief Financial Officer

Operations Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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