Kuwait issues new rules for mandatory insurance policies

Dubai: Kuwait’s Insurance Regulatory Unit has issued new rules governing the issuance of mandatory insurance policies, excluding compulsory vehicle liability coverage, in a move officials say is designed to strengthen transparency and protect policyholders.

The resolution, reported by Al Seyassah Arabic daily, requires insurance companies to include a declaration clause in all mandatory policies, confirming that customers understand the terms, conditions, exceptions, and coverage limits.

It also mandates the use of QR codes on policy documents to store relevant data, track cancellations, and outline the methods for calculating premiums and refunds.

Mohammed Al Otaibi, head of the unit, said the reforms are intended to eliminate discrepancies in pricing between insurers and reduce fraudulent activity.

“The premium calculation mechanism is now fully detailed in the decision and its annexes, establishing transparency between insurance companies and customers,” he said.

The QR code system will take effect 180 days after publication in the official gazette, giving insurers time to adapt their systems. From the date of publication, however, companies must comply with unified standards for issuing policies.

Officials said the annex to the decision also includes technical guidelines for developing electronic systems, information security requirements, and measures to raise awareness among beneficiaries. The changes are aimed at ensuring the integrity of electronic policy issuance while preventing forgery and fraud.

Al Otaibi described the reforms as a milestone in efforts to modernize Kuwait’s insurance sector, aligning it more closely with international standards. He added that the measures are expected to strengthen the protection of policyholders, improve market efficiency, and contribute to broader social and economic stability.