The Board of Directors of the Insurance Authority (IA) has adopted a new unified regulation for vehicle insurance policies against civil liability and against loss and damage. The issuance of this unified regulation comes after more than 27 years of work using the two vehicle insurance policies issued in 1987, and after several amendments to them during that period. The regulation contains many provisions that will be considered by the company, raising a number of issues in the application.
The regulation is a binding legal text that does not in any way prejudice the provisions of the insurance policies, with the possibility of executing an agreement inuring to the benefit of the insured.
Vehicle insurance is differentiated according to the type of insurance, through separate policies, the first of which relates to the Civil Liability (Third Party), to the extent that it will be mandatory under the traffic law. The second is one related to the (supplementary or comprehensive) loss and damage and is optional for those who want to cover their vehicle. This replaces what was called ‘comprehensive insurance’ in a single insurance policy, including the two types of vehicle insurance.
The regulation protects the rights of policyholders and shareholders of insurance companies alike, and protects the companies themselves from risks they may be exposed to in the future.