Insurance Companies Expressed Concern Over The Decision Of MOI To Activate Traffic Law
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A number of insurance companies expressed concern over the enforcement of the decision of Ministry of Interior to activate Article No. 41 of the Traffic Law which allows issuance of reconciliation order for minor traffic accidents, reports Al- Rai daily.

The decision will be enforced from March 2018 in Capital Governorate first on experimental basis. After evaluating the experience, the decision will be implemented in rest of Kuwait. In an earlier press release, Director of General Investment Department Major General Dr Fahd Al-Dousari explained that the reconciliation order forms will be distributed to all patrol teams and police stations.

The victim of a traffic accident should fill a reconciliation order form with all necessary details including the money he deserves to receive.

He should then go to the insurance company, and the latter is obligated to refund the money to him immediately.

The victim has to pay KD 20 to the Traffic Violations Department before he receives a copy of the reconciliation order.

In this regard, Kuwait Insurance Federation stressed the need to hold a meeting with the Investigations Department to discuss the matter and offer suggestions.

Manager of Professional Insurance Company Mohammad Al-Zanati said the decision came as a major blow to the insurance companies, as it will result in them bearing huge losses.


He suggested increasing the value of insurance policy for vehicles to from KD 19 to KD 30 for a sedan car, as this will enable the companies to provide the necessary cash especially with the increasing number of traffic accidents.

Manager of Dar Al-Salaam Insurance Company Mayadah Al-Ali explained that car owners will be happy about this decision as it will enable them to receive compensation within few days.

However, the decision will create a big problem for insurance companies especially since those who cause the traffic accidents will not contribute to the payment of compensation. She suggested the payment of compensation to be shared on fifty-fifty basis by the insurance company and the individual responsible for the traffic accident.

In addition, Manager of Kuwait International Insurance Company Mohammad Al-Rashda explained that there are 27 national insurance companies along with six Arab and four foreign insurance companies in Kuwait.

These companies issued a total of 1,275,399 insurance documents for KD 19,436,280. They paid compensations worth KD 20.284 million along with some compensations worth about KD 43 million which were not paid in the last few years. Al-Rashda suggested increasing the insurance value from KD 19 to KD 30.


07 Feb, 2018 0 875
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