Kuwait: Insurance Regulatory Unit sets penalties for errant insurers
Source: Middle East Insurance Review | Mar 2023
The Kuwaiti Insurance Regulatory Unit (IRU) has issued Decision No. 3 of 2023 setting out of penalties, violations and special restrictions that can be ordered by its disciplinary board.
According to a statement issued by the IRU, the regulation includes details of penalties and violations for insurance and takaful insurance companies and their branches, reinsurance and retakaful companies and their branches, in addition to branches of foreign insurance companies, insurance brokers or reinsurance brokers, and insurance pools, found guilty of violations.
IRU head Muhammad Sulaiman Al-Otaibi said that the decision was a continuation of Resolution No. 2/2023, regarding the formation of the Disciplinary Council led by Judge Hamad Ahmed Al-Wazzan.
Mr Al-Otaibi added that the two decisions came as a continuation of the work of the IRU in verifying compliance by insurance entities subject to its supervision with regulations and the insurance law.
The ultimate goal is to deal professionally and transparently with policyholders and claimants and restore confidence to stakeholders in the insurance sector.
The Disciplinary Council contributes to raising the level of compliance with the insurance law and its executive regulations, said Mr Al-Otaibi. The deterrent measures aim to protect the insured and beneficiaries and raise the level of awareness and insurance culture among participants in the insurance sector.
He added that the regulations gave the right to the Disciplinary Council, after verifying a violation has been committed and proving it with evidence, to mete out the penalties and restrictions contained Resolution 3/2023.
The regulation doubles the amount of the financial penalties imposed on the violator in the event that the latter commits the same violation within three years of the date of issuance of the disciplinary board’s decision in respect of the previous violation. M