The Insurance Regulatory Unit instructed qualified insurance companies Sunday to halt all paper-based issuance of policies covering civil liability from traffic accidents, requiring that such documents be generated solely via the Bima electronic platform. Any policy produced outside this approved digital channel will not be accepted, the unit stated in its formal circular to licensed providers. The directive forms part of ongoing efforts to strengthen digital governance and improve efficiency in the insurance sector.
Under the updated system, insurers may grant contracted brokerage firms permission to issue policies on their behalf through dedicated sub-accounts on the Bima platform. Brokerages must comply fully with the technical controls, verification steps and procedural guidelines detailed in the circular. This arrangement preserves regulatory oversight while expanding the network of authorized issuance points for mandatory coverage required on all registered vehicles.
The Insurance Regulatory Unit framed the change as a key step in Kuwait’s digital transformation agenda, which has progressively moved government and financial services online in recent years. Earlier regulatory attempts to standardize compulsory insurance encountered legal challenges, including a 2025 court ruling that suspended the original Bima rollout and nullified related decisions, according to records from the Supreme Committee for Insurance Regulation. The current circular builds on resolutions restored after that suspension to enable a fully electronic model.
Vehicle licensing procedures will reflect the new requirement, as the General Directorate of Traffic maintains its policy of denying registration or renewal without proof of valid compulsory insurance. Motorists should verify that their coverage originates from the Bima system to avoid any compliance gaps when dealing with traffic authorities. The unit advised insurance providers to complete internal system integrations promptly to prevent service interruptions for policyholders.
Existing policies issued prior to the circular will continue to be honored until their natural expiry, the Insurance Regulatory Unit confirmed, ensuring continuity for current vehicle owners. The electronic platform is designed to reduce administrative burdens, limit opportunities for documentation errors and speed up the overall issuance process. Regional insurance assessments have highlighted how similar digital shifts in GCC markets have improved compliance rates and reduced processing times for mandatory coverage lines.
The Insurance Regulatory Unit called on all authorized companies to review and align their operations with the circular’s provisions without delay. This includes training staff on the new digital workflows and coordinating with brokerages to maintain seamless service delivery. Officials indicated that further guidance may be issued as the platform’s updated version scales to handle full market volume.
