Insurance Unit begins pilot phase for updated 'Bima' system on the 25th

- Issuance of insurance documents for illegal residents in paper format under specific regulations

- December 10 marks the end of the trial period for the updated “Bima” electronic system

- Payment for insurance documents must be made exclusively through electronic payment methods

The Insurance Regulation Unit announced the start of the trial period for the updated “Bima” electronic system, effective from October 25 until December 31, 2026. During this period, qualified insurance companies registered in the system and their contracted insurance brokers are mandated to adhere to the regulations governing the issuance of compulsory motor vehicle insurance policies.

In a circular issued today, the Unit confirmed the cessation of the paper-based channel for issuing liability insurance documents arising from traffic accidents involving Kuwaiti vehicles, effective October 25. Documents must be issued exclusively through the electronic “Bima” system via the Unit’s website, and no document issued outside this channel will be recognized.

The Unit clarified that if document issuance is prevented due to system downtime or a fault on the part of the Unit, recourse to the paper-based channel is permitted in accordance with approved regulations, provided the Unit is notified immediately. However, if the failure results from a fault on the part of the insurance company, the company must immediately notify the Unit of the reasons for the failure. Issuance of the document in paper format is not permitted unless prior approval is obtained from the Unit.

The circular exempted compulsory insurance documents for vehicles owned by illegal residents, allowing their continued issuance via the paper-based channel, subject to immediate notification to the Unit. This is conditional upon presenting a valid certificate issued by the Central Agency for Addressing the Status of Illegal Residents, using the approved card review templates sent to companies via email, and complying with the conditions and regulations set by the Agency.

Regarding insurance brokers, the circular permitted insurance companies registered in the “Bima” system to grant their contracted brokers a sub-user account for issuing documents, provided this is explicitly stated in the contract between the parties and all specified regulatory requirements are met.

Insurance brokers are required to specify the names of employees registered under the company’s residency permits who are authorized to use the sub-user account, and to submit a written declaration and undertaking on official company letterhead, signed by the General Manager, confirming that the account will be used only by authorized employees.

Furthermore, the issuance of documents must take place exclusively within the broker’s licensed office premises; issuance from any other location is prohibited. The sub-user account may not be granted until all contractual requirements are fulfilled, authorized employees are identified, and the required declaration and undertaking are submitted.

To ensure brokers’ readiness to implement the system, the circular mandated that insurance companies conduct training workshops for brokers on the use of the “Bima” system, effective from the date of the circular’s issuance. The names of trainees must be documented and retained for submission to the Unit upon request.

The Unit emphasized that payment for insurance documents must be made exclusively through electronic payment methods, strictly prohibiting the acceptance of cash payments under any circumstances, in line with decisions regulating the ban on cash transactions for entities under its supervision.

The Insurance Regulation Unit called on all concerned companies to comply with the regulations outlined in the circular, warning that non-compliance grants the Unit the right to hold violating companies accountable and take legal action against them, in accordance with the provisions of Law No. 125 of 2019 concerning the Regulation of Insurance and its Executive Regulations, as amended, as well as related decisions, circulars, and other relevant laws.