DUBAI: The Saudi Central Bank (SAMA) has approved a new insurance product that covers the risk of transporting parcels.
The insurance provides financial compensation in the event of loss or damage of parcels, the central bank said in a statement, and it is launched in coordination with the Communications and Information Technology Commission.
“It will put pressure on vendors to increase their quality, otherwise insurance costs will go up for them,” Mohammed Al-Suwayed, chief executive officer of Razeen Capital, said.
It supports the growing e-commerce scene in the Kingdom, which has been accelerating in recent months, particularly during the COVID-19 pandemic.