Start with the insurer and the actual cover
A policy can be well written and still fail a basic compliance check if the insurer is not licensed for that class of business. Kuwait’s Insurance Regulation Law No. 125 of 2019 covers life, general/property and liability insurance, among other classes (Article 3). Article 4 generally requires insurance in those classes to be placed through an insurer or licensed foreign-insurer branch authorized for the relevant business; reinsurance is treated separately. Verify the insurer and the class on the Insurance Regulatory Unit (IRU) register rather than relying on a broker’s pitch or an old certificate.
Then read the schedule, exclusions, endorsements and claims conditions as one set. The statute requires insurers to provide the IRU with specimen policy terms, exclusions, addenda and changes; foreign-language filings require an official Arabic translation (Article 47). That filing obligation is not a promise that every loss is covered. A coverage view still turns on the issued wording, the insured facts and any applicable law.
Buying a business policy: four checks
- Match the exposure to the insured risk. For property, liability or cargo, identify the legal entity, location, activity and limit actually described in the schedule. Do not assume a group company or subcontractor is insured because the parent is named.
- Test the exclusions against realistic losses. Compare exclusions, deductibles, notice periods and any safety or record-keeping conditions against the business’s actual operations. Ask what evidence would be available after a claim.
- Record who placed and services the cover. Keep the signed policy, endorsements, premium evidence and correspondence; distinguish the insurer’s obligation from the broker’s role.
- Track renewal and regulatory status. Check the current IRU publications and licensed-entity information before renewing. The executive regulations have been amended, including in 2026, so an older secondary summary may miss a change. Check the applicable IRU decisions and circulars for the particular insurer and class of cover.
What if a license is suspended or revoked?
The law distinguishes new business from policies already issued. Under Article 54, a suspended insurer generally cannot issue, renew or extend policies during suspension, but policies and endorsements issued before suspension remain in force with their rights and obligations; the IRU may approve an extension in policyholders’ interests. Under Article 58, revocation also bars new policies and renewals while the insurer continues the rights and obligations of pre-revocation policies; the IRU may require transfer to another insurer. Do not treat “suspended” as automatic cancellation of an existing claim, or assume an unverified renewal will be valid.
Disputes: preserve the record before escalating
Ask the insurer for a written coverage decision tied to the actual clause and facts. Save the notice, evidence of loss, policy version, correspondence and proof of delivery. Article 19 of the law establishes a complaints committee for interested persons alleging an error by a licensed insurer. Articles 52–54 of the IRU executive regulations describe complaints through the IRU website and escalation for committee consideration. A complaint is not the same as a guaranteed payout, and it does not replace advice on court deadlines or any agreed dispute process. Check those separately with Kuwait-qualified counsel.
When a portfolio moves to another insurer
A business may receive notice that its insurer plans to transfer a class of policies. Article 48 requires IRU approval for a transfer of policies, including their rights and obligations, and publication of the application with an invitation for policyholders and other interested parties to object within 30 days of Official Gazette publication. Under Article 49, the IRU's approval turns on protecting policyholders, beneficiaries and creditors; an objection can pause the transfer pending resolution. Do not assume the proposed recipient is already on risk when the announcement appears. Keep the notice, the existing policy and all endorsements, then verify the decision and the effective transfer before changing claims contacts or premium instructions.
For a claim, a dated chronology often matters more than a confident summary. Record the incident, discovery, notification, site inspection and insurer's response separately. Preserve photographs and original records without editing them. If a coverage refusal refers to an exclusion, ask which fact meets the exclusion and whether the insurer accepts the rest of the loss. That creates a clearer record for negotiation, a regulatory complaint or advice on proceedings.
Related reading: Explore our insurance practice. If an insurance issue has become a contract dispute, use the commercial dispute document checklist and our dispute-resolution practice to prepare the file.