The chairman of the Supreme Committee for Insurance Regulation, Mr Muhammad Al-Otaibi, has announced the cancellation of a unified system for compulsory vehicle insurance policies following a court ruling on an appeal.
The unified system for mandatory motor third-party liability (MTPL) insurance, was introduced under a 2023 resolution by the Insurance Regulatory Unit (IRU).
Furthermore, the court ordered the temporary suspension of work on the electronic insurance platform, known as Beema, until the competent authority determines the rules, conditions, and tariffs for MTPL insurance, reported the daily, Al-Rai. Beema started operating on 1 January 2024 as part of the IRU’s digital transformation strategy. It allows the issuance and renewal of MTPL insurance policies for private cars and motorbikes.
The court decision also cancels a 2024 resolution, which had updated the approved list of companies authorised to issue MTPL insurance policies.
Officials indicated that the court orders are necessary to maintain legal clarity and ensure that all insurance practices align with court directives and regulatory standards.
These moves effectively reverse regulatory changes aimed at standardising and modernising vehicle insurance policies in Kuwait, pending further decisions by the relevant authorities.
The temporary suspension of the electronic Beema system is expected to impact the digital processing of compulsory vehicle insurance, giving regulators time to review and finalise updated procedures.
The regulatory authorities are expected to determine new rules and conditions for MTPL insurance in the future. Insurance companies and policyholders are advised to follow updates from the Supreme Committee for Insurance Regulation regarding MTPL insurance.
The court ruling also highlights ongoing efforts to balance technological modernisation of insurance systems with adherence to established legal frameworks in Kuwait’s financial and insurance sectors.