Kuwait’s Insurance Regulatory Unit has announced a significant increase in annual insurance premiums for private vehicles.
From April 16, 2023, the mandatory insurance premium for privately-owned vehicles and those owned by entities will increase to KD53, up from KD19. The value of the annual basic insurance premium for private vehicles will also increase to KD32.
The new rates were approved by the committee, in collaboration with the Ministry of Interior and insurance and brokerage companies, following the development of an integrated electronic car registration system.
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Updates on insurance and premium rates for vehicles in Kuwait
The committee has also set the period for receiving compensation to be within a maximum of 10 working days from the date of completion of the insurance claim.
The insurance policy for private cars and motorcycles with non-Kuwaiti license plates entering through the borders is now valued at KD12 per week or KD120 per year.
Taxis will pay KD20 per week or KD140 per year, public transport vehicles will pay KD16 per week or KD183 per year, and cargo vehicles will pay KD30 per week or KD210 per year. The premium will increase by KD1 per passenger, in addition to KD2 control fees.
The new system requires qualified insurance companies and brokers to issue a unified insurance policy, and it is not permissible to amend the form of the unified insurance policy or add any appendices to it, unless it is in favor of the insured or the beneficiary. The form attached to this decision is considered an integral part of it.
The depreciation rates for spare parts have also been specified. The rate will be 0 percent in the first year of manufacture until the end of June for private cars. The rate amounts to five percent until the end of December of the year of manufacture, 10 percent for the second year, 20 percent for the third, 30 percent for the fourth and 50 percent for the fifth year and beyond.
The decision by the Insurance Regulatory Unit will impact a many vehicle owners in Kuwait. However, the new system is expected to lead to better insurance coverage and quicker compensation for those involved in accidents.
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