The Chairman of the Supreme Committee for Insurance Regulation, Muhammad Al-Otaibi, has announced the cancellation of Resolution No. 70 of 2023, which pertained to the issuance of a unified insurance policy system for civil liability arising from traffic accidents (compulsory vehicle insurance), along with its subsequent amendments.

The decision comes in implementation of a court ruling issued in Appeal No. 448 of 2025. It also nullifies Decision No. 14 of 2024, which had amended Resolution No. 70 of 2023. Furthermore, the ruling orders the temporary suspension of work on the electronic insurance platform, known as “Bima,” until the competent authority determines the rules, conditions, and tariffs for civil liability insurance for traffic accidents, reports Al-Rai daily.

Article 2 of the decision reinstates Resolution No. 9 of 2020, which sets out the rules for issuing civil liability insurance policies for traffic accidents. It also cancels Resolution No. 7 of 2024, which had updated the approved list of companies authorized to issue such policies.

This move effectively reverses previous regulatory changes aimed at standardizing and modernizing vehicle insurance policies in Kuwait, pending further decisions by the relevant authorities.

The temporary suspension of the electronic Bima system is expected to impact the digital processing of compulsory vehicle insurance, giving regulators time to review and finalize updated procedures.

The decision underscores the judiciary’s role in shaping insurance regulations in Kuwait, ensuring compliance with legal rulings before implementing significant reforms.

Insurance companies and policyholders are advised to follow updates from the Supreme Committee for Insurance Regulation regarding the reinstatement or modification of compulsory insurance procedures.

Officials indicated that the step is necessary to maintain legal clarity and ensure that all insurance practices align with court directives and regulatory standards.

The ruling also highlights ongoing efforts to balance technological modernization of insurance systems with adherence to established legal frameworks in Kuwait’s financial and insurance sectors.

Stakeholders are expected to monitor forthcoming announcements closely, particularly concerning new rules, tariffs, and authorized providers for compulsory vehicle insurance policies.