New insurance rules in Kuwait: Everything you need to know about safeguarding your insurance policy

Kuwait 's Insurance Regulatory Unit has introduced new rules to strengthen the issuance and security of mandatory insurance policies. The new regulations include a declaration and pledge clause to ensure policyholders are fully aware of coverage terms and introduce advanced digital safeguards such as QR code systems to prevent forgery and fraud.

TL;DR:

• Mandatory insurance policies must now include a declaration clause confirming insureds’ awareness of terms, exceptions, and coverage limits.
  
  
  
• A QR code system will be implemented within 180 days of official publication to secure electronic policy issuance.
  
  
• Unified principles and technical controls will improve electronic systems, information security, and beneficiary awareness.
  

Details of the new insurance policy rules
Mohammed Al-Otaibi, Head of Kuwait’s Insurance Regulatory Unit, outlined the new resolution’s main features, highlighting the mandatory inclusion of a declaration and pledge clause in insurance contracts. This clause confirms that the insured or policy subscriber explicitly understands all key terms, conditions, coverage exceptions, and limits before accepting the policy.
The rules mandate the installation of a QR code system on policies, scheduled to be implemented 180 days after the resolution's publication in the official gazette. This timeline allows insurance companies sufficient time to update their electronic systems and comply fully with the new measures. The resolution’s annex sets out strict technical controls for developing electronic policy issuance platforms. These controls address information security and data protection, aiming to prevent forgery and fraudulent practices while ensuring smooth user experience for policyholders.

Impact on the insurance sector and beneficiaries
By unifying issuance standards and procedures, the resolution is designed to improve the integrity and reliability of the insurance market infrastructure. Enhanced awareness efforts will help insured individuals and beneficiaries better understand their rights and coverage comprehensively. The Insurance Regulatory Unit views these steps as part of ongoing reforms to align Kuwait’s insurance practices with international best standards, boosting sector efficiency and transparency.
Mohammed Al-Otaibi emphasized that the new rules will protect policyholders’ rights, support the national economy, and strengthen social stability by fostering a trustworthy and efficient insurance environment.

FAQ

• 1. What new clause must be included in Kuwait’s mandatory insurance policies?
  A declaration and pledge clause confirming the insured’s awareness of terms, exceptions, and coverage limits.
  
• 2. How will the QR code system improve insurance policies?
  It will enhance electronic policy issuance security and help prevent forgery and fraud.
  
• 3. When will the QR code system be implemented?
  Within 180 days after the regulation’s publication in the official gazette.
  
• 4. Who is responsible for enforcing the new insurance policy rules?
  The Insurance Regulatory Unit of Kuwait oversees adherence to the unified principles and technical controls.
  
• 5. What are the main goals of the new insurance regulations?
  To protect policyholders’ rights, improve the insurance sector’s efficiency, and support the national economy and social stability.