The Insurance Regulatory Unit (IRU) has issued a resolution that allows individuals, private companies and government agencies to submit complaints against non-compliant insurance companies that fail to implement final judicial rulings.
The IRU explained in a statement that this decision represents a new addition to the complaints system, as it allows those with final, announced, but unenforced court rulings to benefit from an additional oversight track through the electronic complaints system, in conjunction with judicial enforcement procedures, in the event that insurance companies refuse to implement the rulings issued against them.
The regulator clarified that the right to file a complaint applies to both natural persons and legal entities, including companies and government agencies, according to the procedures and regulations specific to each category.
The IRU indicated that certain conditions have to be met for complaints to be filed through the new channel. These are:
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The judicial ruling is final and no order has been issued by the competent judicial authority to suspend its implementation,
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An implementation file has been opened with the competent authority, with at least one month having passed since the date of notification during which the judicial ruling was not complied with,
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Documents proving that these conditions have been met are to be attached.
Complaints that meet the conditions will be presented to the competent complaints committee, which will refer the parties that refuse to implement the rulings to the concerned department to take the prescribed legal measures against them, which may include cancelling licences.
The IRU also said that this measure includes final court rulings issued in favour of insurance companies against other insurance companies, relating to the recovery of amounts due arising from insurance business.
Mr Talal Al-Muharib, Director of the IRU’s Legal Department, said, "Respecting and implementing final court rulings is a fundamental legal obligation of all entities under the Unit's supervision. Refusal to implement these rulings must not be used as a means to delay the fulfilment of rights due to their owners. Accordingly, the Unit has established an additional supervisory channel enabling holders of declared but unenforced final court rulings to file complaints. This allows the Unit to exercise its legal powers, in accordance with its founding law, against non-compliant entities, up to and including the revocation of their operating licenses. This initiative reflects the Unit's commitment to promoting discipline and compliance with laws, protecting the rights of all parties, and strengthening confidence in the Kuwaiti insurance sector.”
The IRU stressed that the new complaint procedure is not a substitute for judicial enforcement procedures, nor does it conflict with the jurisdiction of the judicial authorities. Rather, it complements them and is an application and implementation of the provisions of the insurance law.
The goal is to enhance the protection of policyholders’ rights and uphold the principles of justice, transparency and responsibility among entities operating in the insurance sector.