Suspension of paper issuance for mandatory car insurance documents

Kuwait officials issued a circular to licensed insurance companies authorized to issue civil liability insurance policies arising from traffic accidents (mandatory vehicle insurance), announcing the launch of the trial period for the updated Ebima electronic system, which is dedicated to issuing this type of insurance policy.

Under the circular, the issuance of policies through the paper-based channel is suspended, and policies will be issued exclusively through the Ebima electronic system. Any policy issued outside this channel will not be recognized, as part of the unit’s efforts to enhance digital transformation and regulate insurance policy issuance procedures.

The unit clarified that the updated system allows insurance companies to grant authorized brokerage firms the authority to issue policies in the name of the insurance company, through a sub-user account on the Ebima system, while adhering to the controls and procedures specified in the circular.

It is worth noting that this measure does not change the channels or procedures for insurance applications for customers. Policyholders can still directly approach insurance companies or brokerage firms to request policy issuance according to established procedures. The change is limited to the mechanism by which insurance companies and brokers issue policies, which will now be issued exclusively through the Ebima electronic system.

The unit emphasized that insurance companies must, during the trial period, organize training workshops for their contracted insurance brokers on how to use the system, and document the names of trainees to provide to the unit upon request.

The circular also stressed that payment for insurance policies must be made exclusively through electronic payment methods, with no cash payments accepted, in line with decisions issued on this matter and to support the integrity of procedures.

Hamad Abdullah Tifouni, Acting Director of the Information Systems Department at the Insurance Regulation Unit, stated, “The Insurance Regulation Unit aims to strengthen oversight of the companies under its supervision by leveraging modern technology to develop regulatory tools and support the digital transformation journey in the insurance sector.

“This measure helps curb attempts to forge insurance policies or manipulate prices, thereby enhancing the integrity and regulation of policy issuance processes.”

He added, “The Ebima electronic system represents a centralized, unified platform for mandatory vehicle insurance policies, facilitating access to data, improving the accuracy and quality of statistics extracted from the system, and providing more reliable data that supports sector oversight and informed decision-making based on accurate data.”

The development of the Ebima electronic system aligns with the unit’s strategy to build a more efficient and transparent insurance environment based on accurate data and modern technology, supporting the development of the Kuwaiti insurance market.

The circular stipulates that the trial period for the updated electronic Bima system will commence on 25/10/2026 and end on 31/12/2026. Accordingly, eligible companies registered in the electronic Bima system and insurance brokerage firms shall adhere to the following:

1. Effective from 25/10/2026, the paper-based channel for issuing motor third-party liability insurance policies (mandatory insurance for Kuwaiti vehicles) shall be suspended, including the means outlined in Item 1 of Article 7 of Decision No. 32 of 2025. Insurance companies registered in the electronic system (Bima) are obligated to notify their contracted insurance brokers to cease issuing policies through the paper-based channel in accordance with the provisions of this circular.

2. Insurance policies shall be issued exclusively through the electronic system (Bima) via the Unit’s website (www.iru.gov.kw). Any policy issued outside this channel shall not be recognized.

3. In the event that issuance through the electronic system (Bima) is impossible due to system downtime or a fault attributable to the Unit, issuance of the policy through the paper-based channel is permitted, in accordance with Item 1 of Article 7 of Decision No. 32 of 2025. The company must immediately notify the Unit of such occurrence.

4. In the event that issuance through the electronic system (Bima) is impossible due to a fault attributable to the company, the company must immediately notify the Unit of the reasons for the fault. The company is not permitted to resort to issuing the policy through the paper-based channel unless it obtains prior approval from the Unit.

5. Subject to Items 3 and 4 of this circular, motor third-party liability insurance policies (mandatory vehicle insurance) for illegally residing residents shall be issued through the paper-based channel, and the Unit must be notified immediately. This applies to individuals who possess a valid proof of status issued by the Central Agency for Regularizing the Status of Illegally Residing Residents, in accordance with the card templates approved by the Agency and sent to companies via email, and in accordance with the conditions and regulations issued by the Agency on this matter.

6. An insurance company registered in the electronic system (Bima) may grant its contracted brokerage firm a sub-user account to access the system and issue policies, provided that this is explicitly stipulated in the contract concluded with the brokerage firm.

7. The insurance broker is obligated to specify the names of employees (registered under the company’s residency) authorized to use the sub-user account.

8. The insurance broker is obligated to submit a declaration and undertaking, on the company’s official letterhead and signed by the General Manager, confirming that the sub-user account will not be used except by the authorized employees as stated in the preceding item.

9. The insurance broker’s issuance of policies must take place solely from within the licensed workplace premises. Issuance from any other location is prohibited.

10. An insurance company may not grant a sub-user account to an insurance broker unless the requirements outlined in Items 6, 7, and 8 are fully met.

11. Insurance companies registered in the electronic system (Bima) are obligated, from the date of issuance of this circular, to conduct orientation workshops for their contracted insurance brokers on how to use the system. The names of trainees must be documented and retained to be provided to the Unit upon request.

12. Payment for policies shall be made exclusively through electronic payment methods. Under no circumstances shall cash payments be accepted.

13. Without prejudice to Decision No. 32 of 2025, the provisions of this circular shall remain in effect until the issuance of the regulatory decision by the Insurance Regulation Unit on this matter.