Bahrain: Regulator reviews motor insurance requirements with insurers
Source: Middle East Insurance Review | Oct 2019
The Central Bank of Bahrain (CBB) has required insurers to provide motor policyholders with original vehicle spare parts for their damaged vehicles in the event that they cannot provide used spare parts that are in good condition.
The CBB issued a resolution earlier this year which amends the provisions of the Unified Motor Compulsory Third Party Insurance Policy. The amount of cash settlement in this case shall not be less than the total cost of the new original spare parts after taking into account the stipulated depreciation rate in addition to the repair cost.
Motor insurance was one of several topics discussed by the CBB with executives of insurers at a regular meeting in July, according to local media reports. Chaired by Mr Abdul Rahman Al Baker, CBB’s executive director of financial institutions supervision, the meeting discussed the development of the insurance market and new products.
The meeting also discussed the issue of the Unified Insurance Policy for Comprehensive Motor Insurance against Loss and Damage, which sets the minimum benefits and benefits of comprehensive motor insurance. The unified policy will be issued soon in cooperation with the Bahrain Insurance Association (BIA).
During the meeting, the CBB also reviewed with the directors of insurers repeated complaints by many customers about car insurance services. It has set out specific procedures for handling customer complaints which all licensed insures are required to comply with. M