Kuwait introduces new rules for mandatory vehicle insurance
The First Deputy Prime Minister and Minister of Interior, Sheikh Fahd Al-Yousef, has issued Ministerial Decision No. 2116 of 2025, regulating civil liability insurance for traffic accidents, officially titled “Compulsory Insurance for Kuwaiti Vehicles.”
The decision specifies that the document template attached in Appendix 1 will be used until a formal regulatory decision is issued, while insurance policy prices will follow the rates outlined in Appendix 2.
Under Article 3, the Insurance Regulatory Unit is tasked with establishing an approved list of insurance companies authorized to issue compulsory vehicle insurance. The unit will also determine the conditions for joining the list and regulate the process for issuing these policies.
Article 4 gives the unit the authority to monitor compliance, receive and decide on complaints, and take all necessary legal measures according to its governing laws, executive regulations, and any circulars issued.
Article 5 states that the General Directorate of Traffic will not issue or renew vehicle licenses if an insurance document is presented in violation of the new decision.
Finally, Article 6 confirms that all insurance documents and their addenda issued prior to the decision’s implementation remain valid, including all associated rights, obligations, and guarantees. Issuing companies will continue handling the administrative and technical processes related to these existing policies.
The new decision aims to streamline compulsory vehicle insurance procedures, enhance regulatory oversight, and ensure compliance across all licensed insurance providers in Kuwait.
