The Diwan of Legislation and Opinion recently published the draft Insurance Law for 2025, after it was approved by the government, and is now in the process of completing the legal procedures for its issuance. The law aims to regulate the legal provisions related to insurance contracts, addressing gaps in the Civil Code and responding to practical challenges revealed by real-world experience.
اضافة اعلان
One of the key features of this draft is targeting the limitation of the purchase of "krokat," which refers to rights resulting from insurance contracts, through a clear legal provision that criminalizes such practices. Article 103 of the draft law stipulates that anyone found guilty of purchasing these rights will be punished with a fine ranging from 10,000 dinars to 50,000 dinars, or imprisonment for no less than one month and no more than three years, or both penalties.
Increased Penalties for Professionals:
According to the article, the penalty is doubled if the act is committed by a lawyer or someone working in insurance companies. It also applies to anyone who participates in the crime, aids in its commission, or incites it, with the same penalties.
Determining Disability Percentages and Reducing Exaggerations:
The law also addresses the issue of accurately determining disability percentages to prevent exaggeration in these estimates. It introduces a system for determining the duration of work disruption and assessing disability for individuals affected by accidents covered by insurance contracts.
Regulating the Insurance Market:
The law aims to create a specific regulation for insurance contracts, which will help unify legal interpretations related to these contracts and reduce conflicting opinions in this field. The law seeks to balance the interests of both parties to the insurance contract, regulating their rights and obligations, while also considering the specifics of certain types of insurance such as life insurance, medical insurance, and insurance against fire and other property damages.
Encouraging Investment and Economic Growth:
The law is expected to contribute to regulating the insurance market, which will enhance investor confidence in the insurance sector within the kingdom, thereby stimulating economic growth as part of the government's economic modernization vision.
Comprehensive Reference:
The draft law provides a comprehensive reference for organizing the principles and provisions of insurance contracts, from the pre-contract stage through to contract execution. It also establishes clear rules for organizing the obligations between the parties involved, ensuring transparency and fairness in the insurance sector.
In short, the 2025 Insurance Law draft represents a significant step towards enhancing the regulation of the insurance sector and ensuring the rights of the involved parties, while also addressing some illegal practices and effectively regulating the insurance market.
