RGC 117/1437

This case involved damages claimed including reputational damage after a broker had failed to make insurance policy payments to the insurer. It was claimed the broker had been defrauded and had to be liquidated.

Background

A plaintiff, a Saudi joint-stock company, filed a claim with the General Secretariat of the Committees on a group health insurance policy issued under policy number (..), which covered the period from 17 January 2013, to 16 January 2014. The defendant served as the insurance broker, collecting insurance premiums from the plaintiff on behalf of the insurance provider.

The plaintiff paid insurance premiums totalling 1,943,211.77 SAR through cheques and receipts attached to the case file. However, the plaintiff later received a payment request for 600,000 SAR from the insurer, alleging the broker (the defendant) had failed to remit the collected premiums to the insurance company. As a result, the insurer suspended the plaintiff’s health insurance services for over five months. Despite sending multiple letters, the plaintiff received no response from the defendant.