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. According to the decision, the value of the basic insurance premium under the unified insurance policy for private vehicles of individuals will amount to KD32 annually, in addition to an amount of KD2 for each passenger, and KD2 as 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 certain exceptions. According to the decision, the IRU 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. The regulatory authority will also establish an approved list 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 unified insurance policy. It is also not permissible to amend the unified insurance policy form or add any appendices to it except if it is for the benefit of the insured or the beneficiary.
Subject to the international agreements ratified by Kuwait, regarding issuing insurance policy to vehicles coming into Kuwait through its land borders, the IRU may authorize one or more Kuwaiti insurance companies from a list of approved companies to issue the unified insurance policy for vehicles entering Kuwait according to a price tariff mentioned in an Appendix to the Unified Insurance Policy. The decision also mentions that the period of insurance coverage for this policy does not exceed one year.
The decision also notes that 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. Also, only qualified insurance companies and contracted brokers are allowed to issue the unified insurance policy through the paper track.
