Kuwait – Immediate indemnity opens door to abuse
Tuesday, 03 28 2017, Category: Insurance and Reinsurance, Country: Kuwait
The directors of insurance companies were surprised by the implementation of the article 41 of the traffic law, which allows repair orders in traffic accidents for the first time since the traffic law was implemented. Insurance companies were not consulted even though they are the first affected parties by this decision and its consequences.
Insurance experts said that the immediate insurance indemnification stipulated by the law opens door to abuse and will constitute a heavy weight on the budget of insurers. They said that the implementation should be delayed in order not to confuse insurers and affect negatively their finances stressing that the contractual relation between insurance companies and the insured should be the basis for indemnifications.
Source: Annahar - Kuwait