Public Adjuster Contract for Saudi Arabia

Public Adjuster Contract Template for Saudi Arabia

A formal agreement governed by Saudi Arabian law that establishes the professional relationship between a licensed public adjuster and a policyholder/client. The contract defines the scope of adjustment services, compensation terms, and professional obligations in accordance with SAMA regulations and Shariah principles. It includes detailed provisions for claim evaluation, negotiation with insurance companies, and documentation requirements, while ensuring compliance with Saudi Arabia's insurance regulatory framework and Islamic financial principles.

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What is a Public Adjuster Contract?

The Public Adjuster Contract serves as the fundamental legal framework for professional insurance claim adjustment services in Saudi Arabia. This document is essential when property owners or businesses require expert assistance in evaluating and negotiating insurance claims with their insurers. The contract must align with Saudi Central Bank (SAMA) regulations, Shariah law principles, and the kingdom's insurance regulatory framework. It typically includes comprehensive details about service scope, fee structures, professional obligations, and compliance requirements. The document is particularly crucial in complex claim situations where specialized expertise is needed to ensure fair claim settlement. Public adjusters must maintain appropriate licensing and registration with Saudi authorities, and this contract formalizes their engagement while protecting both parties' interests under Saudi law.

What sections should be included in a Public Adjuster Contract?

1. Parties: Identification of the Public Adjuster and the Client, including full legal names, addresses, and registration/license numbers

2. Background: Context of the agreement, including reference to the insurance claim event and the client's need for professional adjustment services

3. Definitions: Key terms used throughout the agreement, including technical insurance and adjustment terminology

4. Scope of Services: Detailed description of the public adjuster's services, including claim evaluation, negotiation, and documentation

5. Term and Termination: Duration of the agreement and conditions for termination by either party

6. Compensation: Fee structure, payment terms, and calculation method (ensuring compliance with Shariah principles)

7. Professional Obligations: Adjuster's duties, professional standards, and compliance with SAMA regulations

8. Client Responsibilities: Client's obligations including information provision and cooperation requirements

9. Confidentiality: Protection of confidential information and client data

10. Compliance with Laws: Commitment to comply with Saudi laws, SAMA regulations, and Shariah principles

11. Representations and Warranties: Statements regarding qualifications, licenses, and authority to provide services

12. Limitation of Liability: Boundaries of the adjuster's liability in accordance with Saudi law

13. Dispute Resolution: Process for resolving disputes under Saudi law and jurisdiction

14. General Provisions: Standard clauses including notices, amendments, and governing law

What sections are optional to include in a Public Adjuster Contract?

1. Insurance Company Coordination: Additional provisions for dealing directly with insurance companies, used when the adjuster has authority to communicate with insurers

2. Multiple Claims Handling: Specific provisions for handling multiple claims under different policies, used in complex loss situations

3. Expert Engagement: Terms for engaging external experts or consultants, included when specialized expertise may be required

4. International Claims: Additional provisions for claims involving international elements or foreign insurers

5. Assignment and Delegation: Terms for transferring rights or delegating duties, included for larger adjustment firms

6. Force Majeure: Provisions for unforeseen circumstances preventing performance, particularly relevant in high-risk areas

7. Subrogation Rights: Provisions regarding the handling of subrogation claims, included when relevant to the specific case

What schedules should be included in a Public Adjuster Contract?

1. Schedule A - Fee Structure: Detailed breakdown of fees, commission rates, and payment terms

2. Schedule B - Service Details: Comprehensive list of specific services to be provided

3. Schedule C - Required Documentation: List of documents required from the client for claim processing

4. Schedule D - Professional Credentials: Copies of adjuster's licenses, certifications, and professional registrations

5. Schedule E - Power of Attorney: If applicable, formal authorization for the adjuster to act on behalf of the client

6. Appendix 1 - SAMA Compliance Checklist: Regulatory compliance requirements and confirmations

7. Appendix 2 - Claims Processing Procedures: Step-by-step procedures for handling claims

8. Appendix 3 - Communication Protocol: Agreed procedures for communications between parties

Authors

Alex Denne

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

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Document Type

Insurance Contract

Sector

Insurance

Cost

Free to use

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