Suspension of Issuing Paper-Based Mandatory Vehicle Insurance Documents

The Insurance Regulation Unit issued a circular yesterday halting the issuance of civil liability insurance policies arising from traffic accidents—known as “mandatory vehicle insurance”—in paper form, mandating that they be issued exclusively through the Bima electronic system. It stipulated that no policy issued outside this channel would be recognized. In a statement, the Unit said 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 platform, in compliance with the controls and procedures specified in the circular.