Rules set for the compulsory automobile insurance policy for civil liability related to accidents – ARAB TIMES

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KUWAIT CITY, December 12: The Insurance Regulatory Unit (IRU) has published the rules for issuing a compulsory automobile insurance policy for civil liability resulting from a traffic accident, in accordance with the resolution No. 9/2020 which specifies the companies eligible for the issuance of the insurance policy, reports the daily Al-Anba. The unit added that an approved list will be issued with the data of companies eligible for the issuance of the insurance policy, and this decision will be implemented from December 13, 2020.

He stressed that the insurance documents issued by unqualified companies before the implementation of the decision will be valid, including the rights, obligations and guarantees contained while the insurance company will undertake the administrative and technical work therein. is associated. He stressed that it is forbidden to issue, grant or market the insurance policy for the benefit of the insured (the underwriter), unless the company that issued it is qualified under the approved list with any resulting updates.

“Are taken into account a set of controls and conditions in the commitment of the eligible company issuing the insurance policy in favor of the insured directly or through a broker approved by the unit within the framework of a written contractual relationship, and it is not permitted to deal with an insurance broker without having obtained the prior approval of the unit ”.

Obligatory
In its decisions, the unit stated that insurance companies are required, when issuing the insurance policy, to conduct their business in accordance with the principles of insurance, in particular transparency and good faith. , and to provide clear and precise information to insurance applicants and beneficiaries of the policy.

The Qualified Insurance Company is also obliged not to refrain from receiving any claim submitted to it or from issuing an insurance policy, except for the benefit of motor vehicles authorized by the competent authority to drive in Kuwait. .

The unit said that “in accordance with the agreement that Kuwait has ratified on the Unified Insurance Card Agreement on Car Traffic Through Arab Countries (the Orange Card), the competent authority may authorize a or more Kuwaiti companies qualified according to the approved list to issue an insurance policy in favor of non-Kuwaiti vehicles crossing the borders of Kuwait, provided that the period of insurance coverage of the policy does not exceed one year ”.

Regarding the transfer of vehicle ownership, the unit said that eligible companies must undertake to issue a new insurance policy for the benefit of the new owner of the vehicle in cases requiring the transfer of ownership of a motor vehicle. , while the period of insurance coverage should be consistent with the remaining term of the vehicle license. Companies eligible for the issuance of the new insurance policy must:

Politics
Pricing the value of the insurance policy for one year if the vehicle registration period is less than one year. The price of the insurance policy will be fixed for 3 years if the duration of the vehicle license is less than 3 years and more than two years. The insured company must terminate the insurance policy issued for the insured (the former owner of the vehicle) and return the remaining part of the premium, provided it is not less than one year.

The insurance company may deduct an administrative fee for the cancellation of the insurance policy not exceeding 10 percent of the remaining value of the insurance premium. The unit stressed that insurance companies or the broker would not accept any money, benefits or gifts from and to the intermediary contracted with them or anyone related to them unless approved by the insurance unit.

The eligible company must establish contractual arrangements to collect the net value of the insurance contract after deduction of the value of the commissions due to the broker within a maximum period of 7 days from the date of issue of the contract, with the commitment of the eligible company, after having accepted the subsidy or received a commission for the issuance or marketing of the insurance policy by the broker, and not exceeding 10 percent of the value of the premium of the policy of ‘assurance







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