Kuwait Increases Vehicle Insurance by 80% to KD 32

Kuwait’s Insurance Regulatory Unit approved a decision on Wednesday to increase the yearly insurance of private vehicles from KD 19 to KD 32.  The decision will be implemented from April 16th, 2023. 

In the new system for compulsory vehicle insurance for traffic accidents, the price for the annual basic insurance premium for private vehicles and vehicles owned by entities will increase to KD 53.

The committee of the Regulatory Unit approved the amended rates for the mandatory insurance policy after the development of an integrated electronic car registration system. The committee also approved the time period for receiving the insurance claim to be within 10 days. 

The insurance policy for vehicles with non-Kuwaiti license plates entering through borders is priced at KD 12 per week or KD 120 per year. The insurance costs for taxis cost KD 20 per week or KD 140 per year. The insurance for public transport vehicles is priced at KD 16 per week or KD 183 per year and KD 30 per week or KD210 per year for cargo vehicles. 

The premium increases by KD 1 per passenger and to KD 2 for control fees. 

The depreciation rates for spare parts of private cars are to be 0% in the first year of manufacture until the end of June of that same year. The rate will amount to 5% until December of the year of manufacture, 10% for the second year, 20% for the third year, 30% for the third year, and 50% for the fifth year and beyond that time. 

The insurance companies and brokers are obligated to issue a unified insurance policy and any edits to the form of the unified insurance policy or addition of appendices is prohibited, unless it is in favour of the insured or the beneficiary.