The Insurance Regulatory Unit issued an administrative decision, which includes a number of penalties for the violating companies, provided that the value of the financial penalties imposed on the violator is doubled in the event of a return to committing the same violation within three years from the date of issuance of the disciplinary board’s decision.
The Al-Qabas daily said among the most prominent violations, penalties and restrictions included in the new regulations include:
— The board of directors of insurance and Takaful insurance companies contracts with those who are not licensed, or those registered in the unit’s records without obtaining prior approval, as this act requires stopping the activity of the licensee for a period not exceeding one month, in addition to a number of penalties that ranged from fines to the board Management 5 thousand dinars, dismissal of a member/s of the board of directors, warning the offending employee.
— Failure to inform the client of the policy information and the rights and obligations arising from it, including the terms of cancellation or any essential conditions, which results in preventing the authorized person from carrying out certain actions, or suspending his license for a period not exceeding one month, in addition to fining the employee 2000 dinars and warning him.
— Practicing the insurance or Takaful insurance activity without a license, which entails a number of penalties, including: fining the members of the board of directors not less than 10 thousand dinars and not more than 50 thousand dinars, in addition to dismissing the members / members of the board of directors, and warning the offending employee.
— The person who viewed the insurance record of a customer using the information obtained by using it for a purpose other than the purpose for which he viewed it, which imposes a number of penalties, including preventing the authorized person from the unit from carrying out certain actions, suspending or amending licensed for a period not exceeding one month, in addition to a fine not exceeding 1,000 dinars.
— The failure of insurance and Takaful insurance companies, when requesting to open a branch or branches inside or outside Kuwait, to provide the insurance unit with any amendment, change or addition to the attachments of their request, as a number of procedures are taken, including fining the members of the Board of Directors / CEO with not less than 10 thousand dinars and not more than 25 thousand dinars.