Insurance Authority: Halt Issuance of Mandatory Vehicle Insurance Policies in Paper Format

The Insurance Regulatory Unit issued a circular on Sunday halting the issuance of civil liability insurance documents arising from traffic accidents (compulsory vehicle insurance) in paper form, mandating that they be issued exclusively through the “Bima” electronic system, and stating that any document issued outside this channel will not be recognized. In a statement, the Unit said the circular, addressed to licensed insurance companies authorized to issue such documents, is part of the broader push to enhance digital transformation and streamline insurance document issuance procedures.

It clarified that the updated system allows insurance companies to grant authorized brokerage partners the authority to issue documents in the name of the insurance company through a sub-user account on the Bima system, in compliance with the controls and procedures specified in the circular. The Unit emphasized that this measure does not alter the channels or procedures for customers to request insurance; policyholders may still approach insurance companies or brokerage firms directly to request document issuance according to existing procedures. The change is limited to the issuance process by insurance and brokerage companies, which must now issue documents exclusively through the Bima electronic system.

The Unit stressed that during the trial period, insurance companies must organize awareness workshops for their contracted insurance brokers on how to use the system, documenting the names of participants to provide to the Unit upon request. It noted that payment for insurance documents must be made exclusively through electronic payment methods, with cash payments not accepted, thereby supporting procedural integrity and aligning with relevant decisions on this matter.

The statement quoted the acting Director of the Information Systems Department at the Unit, Hamad Tifouni, who said the Insurance Regulatory Unit seeks to strengthen oversight of supervised companies by leveraging modern technology to develop regulatory tools and support the digital transformation journey in the insurance sector. Tifouni explained that this measure helps curb attempts to forge insurance documents or manipulate prices, thereby enhancing the integrity and regulation of document issuance processes.

He added that the Bima electronic system serves as a unified central platform for compulsory vehicle insurance documents, 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 information.

He noted that the development of the Bima electronic system is part of the Unit’s strategy to build a more efficient and transparent insurance environment grounded in accurate data and modern technology, supporting the development of the Kuwaiti insurance market.