The Cabinet Approves Incentive Discount for Electronic Payment of Insurance Policies

SadaNews - The Cabinet approved in its session held on 30/9/2025 allowing insurance companies to grant an incentive discount of up to 10% on the value of mandatory vehicle insurance policies (personal injury and third party) for those policies paid through electronic payment methods, following a recommendation from the Capital Market Authority. This move by the authority aims to enhance the insurance sector's adoption of electronic payment methods in line with the government's push towards digital transformation.

The chairman of the authority, Ammar Al-Akar, stated that in light of the role the authority plays in organizing and developing the sectors under its supervision and regulation, the authority emphasizes the importance of enhancing digital transformation in the financial sectors it oversees, especially the insurance sector, and the necessity for it to keep pace with developments and updates within a legislative and regulatory framework that aligns with relevant laws and regulations, which contributes to encouraging reliance on electronic payment methods. Al-Akar added that this decision is expected to have positive economic effects, reflected in enhancing liquidity for insurance companies, which will contribute to improving their financial performance and increasing their operational efficiency, as well as reducing cash transactions in cash, checks, and promissory notes.

For his part, the Director General of the Insurance Department at the authority, Mr. Amjad Qabha, stated that this decision reinforces the authority's strategy to enhance the efficiency of the insurance sector and promote financial stability by providing easy payment alternatives. Citizens will enjoy the incentive discount when paying for their insurance policies through approved electronic payment methods, which supports the government's directions towards enhancing digital transformation and using electronic payment methods, which will speed up the claims process in insurance companies and reduce legal disputes.

The authority has worked during the previous period to prepare the insurance sector to adopt electronic payment methods by conducting several meetings and specialized workshops with relevant stakeholders, based on the authority's vision to keep pace with developments in this field and improve and expand insurance services to serve the insured citizens. It is worth mentioning that the authority will issue the necessary regulations and guidelines for the insurance sector to implement what was mentioned in the Cabinet's decision according to the established procedures.