"Insurance Unit": Suspension of issuing mandatory vehicle insurance policies... in paper form - Sarmad

The Insurance Regulation Unit issued a circular on Sunday halting the issuance of civil liability insurance policies arising from traffic accidents, commonly known as “mandatory vehicle insurance,” in paper format. These policies must now be issued exclusively through the “E-Bima” electronic system, and any policy issued outside this channel will not be recognized.

In a statement, the Unit explained that the circular, addressed to authorized insurance companies permitted to issue this type of policy, is part of the broader initiative to enhance digital transformation and regulate the procedures for issuing insurance policies.

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 “Bima” system, in compliance with the controls and procedures specified in the circular.

It 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 policy issuance according to established procedures. The change is limited to the mechanism by which insurance companies and brokers issue policies, which must now be done exclusively through the “E-Bima” electronic system.

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

The statement quoted Hamad Tifouni, Acting Director of the Information Systems Department at the Unit, who said that the Insurance Regulation Unit aims 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 policies or manipulate prices, thereby enhancing the integrity and regulation of policy issuance processes.

He added that the “E-Bima” electronic system serves as a unified central platform for mandatory vehicle insurance policies, facilitating data access, improving the accuracy and quality of statistics derived from the system, and providing more reliable data that supports sector oversight and informed decision-making based on precise data.

He noted that the development of the “E-Bima” electronic system aligns with the Unit’s strategy to build a more efficient and transparent insurance environment grounded in accurate data and modern technology, supporting the growth of Kuwait’s insurance market.