KUWAIT: The Insurance Regulatory Unit (IRU) announced on Sunday the issuance of Decision No. 19 of 2025, setting out new rules for issuing mandatory insurance policies in Kuwait, with the exception of compulsory vehicle insurance for civil liability arising from traffic accidents. The step comes as part of efforts to enhance transparency, safeguard policyholders’ rights and strengthen the local insurance market.
Head of the IRU Mohammad Al-Otaibi said in a press statement that the decision introduces several key obligations for insurance companies, including the addition of a declaration and pledge clause in policy conditions confirming that the insured is fully aware of the terms, exceptions and coverage limits. The rules also require the inclusion of a quick response (QR) code in all policy documents containing related data, alongside clear provisions for policy cancellation, refund mechanisms and transparent calculation of premiums.
Al-Otaibi explained that the decision is designed to improve monitoring through digital tools, prevent forgery, and raise awareness of the rights and obligations of market participants. He noted that by setting a unified mechanism for premium calculation, the rules eliminate discrepancies in pricing practices among companies, thereby reinforcing transparency between insurers and customers. The QR code system will come into effect 180 days after the decision’s publication in the Official Gazette, allowing companies sufficient time to update systems and ensure compliance. From the date of publication, however, all insurers are required to adhere to unified principles and standards when issuing mandatory policies.
The annex to the decision, he added, outlines technical requirements for electronic system development, information security and beneficiary awareness, ensuring the safe issuance and use of electronic documents while preventing fraud or manipulation. Al-Otaibi stressed that the move represents a significant step in upgrading the insurance sector’s infrastructure and aligning it with international best practices. He affirmed that the decision will bolster the protection of insured parties and beneficiaries, contribute to the national economy, and reinforce social stability in Kuwait. — KUNA
