Kuwait Scraps Paper Vehicle Insurance

KUWAIT CITY, Oct 18: The Insurance Regulatory Unit (IRU) has ordered insurance companies to stop issuing paper documents for compulsory vehicle insurance, making the digital “Bima” system the exclusive channel for issuing civil liability insurance policies arising from traffic accidents.

In a circular issued on Sunday to insurance companies authorised to issue such policies, the unit stipulated that any insurance document issued outside the electronic system will not be considered valid.

The measure is part of Kuwait’s efforts to accelerate digital transformation, regulate insurance document issuance and strengthen oversight of the insurance sector.

The unit explained that the updated system allows insurance companies to authorise their contracted insurance brokers to issue policies in the name of the insurer through sub-user accounts on the Bima system, subject to the controls and procedures specified in the circular.

However, the change does not affect the existing channels through which customers apply for insurance. Applicants can continue to approach insurance companies or their contracted brokerage firms directly to request policies under the established procedures.

The change applies exclusively to the mechanism used by insurance companies and brokers to issue the documents, which must now be processed through the electronic Bima platform.

The unit also instructed insurance companies to organise introductory workshops during the trial period to familiarise their contracted brokers with the system. Companies must maintain records of the trainees’ names and provide them to the unit upon request.

It further stressed that payments for insurance policies must be made exclusively through electronic payment methods, with cash payments not accepted.

Hamad Tifouni, acting director of the Information Systems Department at the unit, said the regulator aims to strengthen oversight of companies under its supervision by employing modern technology to improve regulatory tools and advance digital transformation across the insurance sector.

He said the new measure would help curb attempts to forge insurance documents and manipulate prices, while improving the security and transparency of the policy issuance process.

Tifouni described the Bima electronic system as a unified central platform for compulsory vehicle insurance documents. The platform is expected to facilitate access to insurance data, improve the accuracy and quality of statistical information, and provide more reliable data for regulatory monitoring and informed decision-making.

He added that the development of the electronic insurance system reflects the unit’s commitment to establishing a more efficient and transparent insurance environment based on accurate data and modern technology, while supporting the continued development of Kuwait’s insurance market.