In response to public anger over the increase in car insurance rates, the head of the Supreme Committee for the Insurance Regulatory Unit, Muhammad Al-Otaibi, has issued a decision to temporarily suspend work on the decision to increase the prices of car insurance policies until the completion of the joint study with the Ministry of Interior.

Informed sources revealed to Al-Rai that an extraordinary meeting was held between leaders of the Ministry of Interior and IRU officials which lasted for hours and witnessed a discussion of various aspects related to the decision, especially with regard to the competence of the two parties in this regard.

The Ministry of Interior officials argued that Article 6 of Law 67/1976 stipulates that “the licensing of any motorized vehicle or the renewal of its license requires insurance against civil liability arising from vehicle accidents, insurance that is valid for the period of the license, and the Minister of Interior issues a decision on the rules of insurance conditions.”

The Minister of Interior alone has the right to make any amendment to the fee list.

On the other hand, the IRU officials stressed that the intended competence relates only to the conditions and specifications prescribed for the car insurance registration document.

The sources stated that the discussions reflected an overlap in the powers between the “Interior Ministry” and the “Insurance Unit”, which prompted the decision to be temporarily postponed in public interest, and within the framework of the “Unit” and the “Interior Ministry” keenness to support the process of digital transformation, the issuance of the electronic document and the digitization of the services related to the vehicles registration document and make it easier for citizens.

The sources indicated that in the event of overlapping powers between the authorities, the opinion of the Fatwa and Legislation Department is usually sought, but the failure of the IRU by law makes it a lawyer itself, and therefore the scenario that was agreed upon in principle to resolve the overlapping of powers regarding the jurisdiction concerned with determining compulsory motor insurance fee is the friendly understanding between the two parties.

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