Regulatory Alerts2022-01-01
Decision of the Chairman of the Authority No. (2301) for 2022 Regarding Regulations for Settling Claims in Supplementary Motor Insurance
The Financial Regulatory Authority issued Decision No. (23-1) for 2022 to establish binding regulations for settling claims in the supplementary motor insurance sector. The decision mandates that vehicles are not classified as total losses if repair costs exceed 50% of the insured amount, caps client deductibles at 25% for partial losses while exempting total losses, and requires companies to provide certified loss ratio statements when clients transfer policies. Furthermore, licensed insurers must align their policy forms with these rules within six months of the decision's publication.
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