PROCEDURES AND MECHANISMS IN PLACE DURING THE CONTRACT PERIOD
Procedure arises from the delay in receiving the vehicle by the lessee
The lessee undertakes to receive the vehicle on the delivery date or within ten (10) working days from the date on which the lessee is informed by the lessor of receipt. The lessee shall pay the lease payments specified even if he did not actually receive the vehicle.
Procedure arises from the delay in the lease payments
The lessor may repossess the vehicle in case of lessee's default in respect of any monthly lease payments and other liabilities, according to the following procedures:
The lessor shall remind the lessee of payment at least five (5) days before the lease payment is due, via text messages or other means of communication, and shall remind him once more after the payment is due.
If the lessee defaults on any payment, in whole or in part, ten (10) days past the due date, the lessor shall send a delay notice, indicating the lessee's default on payment and informing him that he is required to make immediate payment. Where the lessee fails or delays to make the due payments, the lessor shall have the right to consider the lessee on default and send him a default notice.
If the lessee fails to correct the default within the grace period given in the default notice, the lessor may consider this a violation.
The lessee shall communicate with the lessor to seek advice if he encounters financial difficulties and if he is unable to fulfill his obligations under the contract. The lessor shall discuss with the lessee the options available in line with the lessee's financial position.
Procedures of contract termination
This contract shall be binding on the parties thereto. Neither party may withdraw from the contract without the written consent of the other party, or without the other party committing any acts justifying withdrawal from the contract in accordance with the terms and conditions of the contract. If the lessee, having obtained the written consent of the lessor, is willing to withdraw from the contract and the lessor agrees to that in writing, the lessor shall have the right to require the lessee to fulfill all his obligations until the date of the termination, not to mention the lessor's right to claim compensation for withdrawal.
Procedures of early settlement and owning the car
Lease Finance Program from the Saudi National Bank program gives you the possibility of early settlement and owning the car at any time at least ten (10) days prior to the due date of the lease payment. You can apply for early payment by visiting one of the finance centers.
Procedures of Insurance Claim
In the event of an accident, please do the following:
You must never waiver any party causing damage to the vehicle.
Call Najm on 920000560 to issue a report on the accident and ensure that the Najm company report is obtained.
Visit traffic accident assessment centers to estimate damages if the error rate is less than 100%.
Inform the insurance company and clarify the estimate resulting from the accident immediately, with the submission of the documents required to open the claim within a maximum period of 15 days from the date of the accident to accept the claim.
The insurance company is required to provide a letter to the authorized dealer/workshop to inspect the vehicle.
Before going to the dealer/workshop, it is necessary to go to the service centers, or call the phone banking to obtain the reference number for the repair permit (validity of the repair permit approval is 7 days).
In the event that the final quotation is provided by the authorized dealer/workshop and sent to the insurance company, the start of the repair is approved, provided that all the necessary documents and conditions to open and accept the claim are completed.
Required documents to open a claim with the insurance company in the event of a traffic accident
- Traffic report or Najm company report.
- Damage assessment form or a copy of the accident sketch in case of a report from the traffic police.
- Police report, in case of theft.
- Civil Defense report, in case of fire, and bring the scene.
- Report of Najm Company or Civil Defense, in case of natural disaster.
• The claim is settled in accordance with the terms and conditions of the insurance certificate.
• The driver must be at least 18 years old at the time of the accident and not older than 70 Hijri years.
• In the event of an accident and the fault is 100% on the third party, the amount of the deductible will not be paid.
• Please do not repair the car until after obtaining approval from the insurance company.
• Insurance coverage does not apply if proven that the individual's license who is driving the vehicle has expired and has not been renewed within 50 working days of the accident.
Insurance coverage does not include the case of proven theft while the vehicle is in operation.
Procedures followed in case of lessee death
The lessee shall be exempted in case of death or total disability in accordance with SAMA's Debt Collection Regulations and Procedures for Individual Customers.
If the case of death or total disability is not excluded from the exemption under SAMA's Debt Collection Regulations and Procedures for Individual Customers, in addition to the exceptions below:
Death or Total Disability Insurance Guidelines:
1. About a death or total disability insurance policy:
With reference to the Ijarah-Based Vehicle Finance Contract, Lease Finance Program from the Saudi National Bank program provides for insurance coverage for the risk of the lessee' death or permanent disability, and the Bank may charge the costs to the lessee in accordance with Article 24.2.
2. Coverage limits:
- Natural death of the lessee, except for the cases excluded under this policy.
- Death of the lessee as a result of an accident, except for the cases excluded under this policy.
- Total disability of the lessee due to an accident, except for the cases excluded under this policy.
- Total disability of the lessee as a result of a disease, except for the cases excluded under this policy.
- This includes all countries save Iraq, Syria, Afghanistan or a country at war (whether war is declared or not).
3. General exceptions:
- In addition to the exceptions under SAMA's Debt Collection Regulations and Procedures for Individual Customers, further exceptions are found below:
- The policy does not cover any claim, which is submitted, or whose documents are completed, 60 days after the date of death or total disability.
- The policy does not apply to a lessee who is less than 18 years old at the beginning of the lease finance or more than 70 years old at the end of the lease finance term based on the Gregorian calendar.
- The policy does not cover a finance amount of more than SAR 500,000.
- The policy does not cover bad debts, the amounts owed and unpaid by the customer 6 months or more after the due date.
- This policy does not cover penalties or fines.
- This policy does not cover the lessee's violation of, or attempt to violate, any law, or any act that would subject him to criminal or civil penalties.
- This policy does not cover any death/total disability as resulting from:
Any kind of mental or psychological illness or condition arising from complications of pregnancy or abortion.
Sexually transmitted diseases, acquired immunodeficiency syndrome (AIDS), any human immunodeficiency virus (HIV) or any HIV antibodies.
Misuse of medication prescribed by a legally qualified physician.
Injury due to the nature of the work.
Risks associated with the lessee's air travel while being on an aircraft for the purpose of any profession, technical process, hobby or any other air activity, or while entering or disembarking from the aircraft, or as a result of the lessee falling from the aircraft, unless he is a pilot, a member of the air crew or a person traveling on a scheduled airline as an ordinary passenger (whether paid or unpaid) according to the commercial airline or carrier schedule.
- This policy does not cover temporary total disabilities that are not permanent and continuous in nature.
- This policy does not cover any claim arising from a pre-existing condition that caused the lessee's disability or death, which existed prior to applying for finance.
- This policy does not cover any claim payable if it is found there has been a direct or indirect misrepresentation a fact relating to the issuance of this coverage.
4. Below are the documents required by the insurance company:
A claim for death or total disability must be filed and all the documents below must be completed within sixty days from the date death or total disability takes place, in order for the claim to be accepted:
In case of death:
1. A copy of the lessee's ID.
2. The original of death certificate issued by the Ministry of Health (if death takes place within the Kingdom of Saudi Arabia), or the original of death certificate authenticated by the Ministry of Foreign Affairs and the Embassy of the Kingdom of Saudi Arabia in the country where death occurs (if death takes place outside the Kingdom of Saudi Arabia).
3. A detailed medical report issued by the attending physician (in case of natural death) if the cause of death is not mentioned in the certificate.
4. Police report on the accident in case of death due to an accident, if any.
In case of total disability:
1. A copy of the lessee's ID.
2. A copy of a report issued by the Department of Occupational Health in the Kingdom of Saudi Arabia proving cases of total disability, or a copy of the medical committee's report on each case, indicating the cause of the disability, its degree, the date of the accident or illness, and the date of proof of disability
3. Police report on the accident in case of total disability due to an accident, if any.
Procedures followed in the event of total loss of the vehicle:
The lessee shall, immediately and within a period not exceeding five (5) working days, notify the lessor of any damage to the vehicle that prevents full use thereof, in which case the lessee is not required to pay the lease payments subsequent to the date of total damage.
The lessee shall bear the loss resulting from damage of the vehicle if the damage is due to the lessee's default or negligence. The lessee shall be liable for the amounts not covered by insurance and not exceeding the value of the vehicle upon damage. The lessor shall then issue a clearance letter to the lessee and updates its credit register with the credit information service provider for a period of no more than seven (7) business days from the date of payment.
Compensation mechanism in the event of total loss of the vehicle:
In case of total damage, settlement between the lessor and the lessee shall takes place according to SAMA's relevant controls.
Terms and Conditions shall be reviewed and all the contents of the Lease with Promise to Own Contract must be read, fail to do so doesn't relieve from the commitments contained therein.