02/11/2025
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02/11/2025
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KUWAIT CITY, Nov 2: The First Deputy Prime Minister and Minister of Interior, Sheikh Fahd Al-Yousef, has issued Ministerial Decision No. 2116 of 2025 concerning the insurance policy for civil liability arising from traffic accidents, commonly known as Compulsory Vehicle Insurance for vehicles registered in Kuwait.
Key Provisions of the Decision
Article 1 stipulates that the standard insurance document template attached in Appendix No. 1 of the decision shall be used as the official format for compulsory vehicle insurance until a new regulatory decision is issued to replace or amend it.
Article 2 establishes that the insurance policy pricing shall be applied in accordance with the rates set forth in Appendix No. 2 of the decision, and shall remain in effect until further regulation is enacted.
Article 3, the Insurance Regulatory Unit (IRU) is mandated to:
- Prepare and approve a list of authorized insurance companies qualified to issue compulsory vehicle insurance policies for civil liability resulting from traffic accidents.
- Define the eligibility conditions for inclusion on this list.
- Supervise and regulate the rules and procedures governing the issuance of these insurance policies.
- Oversight and Compliance Mechanisms
Article 4, The IRU is also tasked with monitoring the implementation of this decision and ensuring full compliance by all concerned entities. The Unit has the authority
- Receive and investigate complaints related to the decision to:
- Take appropriate legal action in accordance with its founding law, executive regulations, and related circulars or decisions issued under its jurisdiction.
- This provision effectively grants the IRU a supervisory and enforcement role over insurance companies and related stakeholders to ensure adherence to the new regulatory framework.
- Vehicle Licensing Linked to Compliance
Article 5 introduces a crucial enforcement measure: the General Directorate of Traffic is prohibited from issuing or renewing vehicle licenses if it receives an insurance policy issued in violation of the provisions of this new decision.
This means that only insurance policies issued by approved companies and in accordance with the new rules will be recognized as valid for vehicle registration and renewal purposes under Kuwait’s Traffic Law and its implementing ministerial decisions.
Validity of Existing Insurance Documents
Article 6 clarifies that all existing insurance documents and their addenda issued before the enforcement of this regulation will remain valid.
All rights, obligations, and guarantees stipulated in these previously issued policies will continue to be recognized. Insurance companies that issued such documents are also required to maintain administrative and technical services related to these contracts until their expiration.
