construction-projects-in-ksa

Inherent Defects Insurance Policy for construction projects in KSA

Mon 03/11/2024 - 04:56

Since 2020, all contractors are required in the Kingdom of Saudi Arabia to obtain Inherent Defects Insurance Policy for their projects. SOCOTEC’s experts, through their expertise, is able to help the players in the construction sector to obtain it.

A compulsory insurance policy for construction projects in the KSA

In 2020, the Saudi Arabia Monetary Authority implemented a legislation compelling all private, residential, and commercial ventures to acquire the Inherent Defects Insurance (IDI) Policy. MALATH Cooperative Insurance Company has been appointed by SAMA (Saudi Arabian Monetary Authority) to be the leader of the IDI in Saudi .This requirement encompasses a diverse range of structures, including high-rise buildings (towers), warehouses, hospitals, hotels, residential, venues for gatherings (such as mosques, restaurants, and sports facilities), educational buildings, malls, telecommunication towers, industrial structures and installations, buildings below 23 meters, and those classified as high-risk. The IDI coverage is mandatory for a duration of ten years, starting upon the issuance of the Occupancy Certificate and upon the insurer's receipt of a Certificate of Approval.

Inherent defects, also known as latent defects, are issues that can be linked to flaws in the design, plans, materials, specifications, geological investigations, or workmanship during the design and construction phases of a building or structure. It is crucial to conduct thorough examinations of these potential defects at every project stage to guarantee their accurate identification and correction.

inherent-defects-insurance-policy

Construction projects in KSA

SOCOTEC's expertise help you meet IDI requirements

MALATH insurance, prior to accepting this long-term insurance coverage, has qualified SOCOTEC as a TIS company (technical Inspection Services) to undertake the necessary inspection steps along with the issuance of the requested RD reports dedicated to insurers and re-insurers companies helping them assessing the covered risk. SOCOTEC’s role is thus to ensure the correct addressing of these potential defects, it offers its expertise through a thorough examination at each project stage. Our teams supervise both the design and construction phases to guarantee compliance with the IDI's requirements. They meticulously scrutinize all aspects of the plans, provide feedback on drawings and calculations, and closely monitor progress until all modifications align with the specified requirements. Subsequently, on-site inspections are conducted during the construction process to verify the proper implementation of technical requisites.

The implementation of IDI is an opportunity for building owners to ensure that their buildings meet the highest standards. SOCOTEC is there to help them optimise their projects in this respect.

MALATH insurance, prior to accepting this long-term insurance coverage, has qualified SOCOTEC as a TIS company (technical Inspection Services) to undertake the necessary inspection steps along with the issuance of the requested RD reports dedicated to insurers and re-insurers companies helping them assessing the covered risk. SOCOTEC’s role is thus to ensure the correct addressing of these potential defects, it offers its expertise through a thorough examination at each project stage. Our teams supervise both the design and construction phases to guarantee compliance with the IDI's requirements. They meticulously scrutinize all aspects of the plans, provide feedback on drawings and calculations, and closely monitor progress until all modifications align with the specified requirements. Subsequently, on-site inspections are conducted during the construction process to verify the proper implementation of technical requisites.

The implementation of IDI is an opportunity for building owners to ensure that their buildings meet the highest standards. SOCOTEC is there to help them optimise their projects in this respect.

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