IRU to increase private vehicles insurance: Kuwait

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The Supreme Committee of the Insurance Regulatory Unit (IRU) has issued a decision to regulate the issuance of a civil liability insurance policy arising from traffic accidents (“compulsory vehicle insurance policy”), whereby the qualified insurance company and the contracting broker are obligated to issue the unified insurance policy, reports Al-Rai daily. It is not permissible to amend the standard insurance policy form or add any appendices to it except if it is for the benefit of the insured or the beneficiary.

According to the decision, the unit will review the price tariff periodically — at least once every fiscal year — or whenever the market needs it, in accordance with the actuarial principles in force in this regard.

According to the decision, the value of the basic insurance premium for private vehicles for individuals will amount to 32 dinars annually, in addition to an amount of 2 dinars for each passenger, and 2 dinars for the value of supervision and control fees. The qualified insurance company will not accept payment of the value of the unified insurance policy from the insured (participant) in cash, and collection of the value is limited to electronic payment methods, with the exception of the unified insurance policy issued under Article (8) of this decision.

The unit will establish an approved list that includes data of insurance companies eligible to issue the unified insurance policy, and their qualifications will be reviewed periodically or when any regulatory decisions are issued.

The qualified insurance company must undertake not to accept granting or collecting a commission for the issuance or marketing of the standardized insurance policy by the broker in excess of 10 percent of the value of the basic insurance premium of the standardized insurance policy shown in Appendix No. (2) of this decision.

Subject to the international agreements ratified by Kuwait, the competent authority may authorize a Kuwaiti company or more of the insurance companies qualified according to the approved list to issue the unified insurance policy for the benefit of non-Kuwaiti vehicles coming across the borders of Kuwait, according to the price tariff mentioned in Appendix No. 3 of this. The decision provides that the period of insurance coverage for this policy does not exceed one year.

In this case, the provisions of Article (4) of this decision do not apply. According to the decision all insurance policies and their appendices issued prior to the implementation of this decision shall remain valid, including the rights, obligations and guarantees they contain, and the companies issuing these policies shall continue the administrative and technical work related to them; qualified insurance companies and contracted brokers are allowed to issue the unified insurance policy through the paper track and compensation resulting from documented damages or expenses incurred by third parties/the injured due to damage or loss of property, with a value not exceeding one million dinars, regardless of the number of those whose property was damaged.