Chairman of the Board of the Insurance Authority;

Having perused:

- The Federal Law No. (6) of 2007, concerning the Establishment of the Insurance Authority and the Organization of Insurance Operations , its amendments and its Executive Regulation ;
- The Federal Law No (21) of 1995 concerning the Federal Traffic Law ,its amendments;
- Insurance Authority Board of Directors' Decision No. (25) of 2016 Pertinent to Regulation of the Unified Motor Vehicle Insurance Policies
- And, based on the approval of the Board of Directors of the Insurance Authority and the proposal of the Director General of the Authority,

Has decided:

Article 1

The Unified Motor Vehicle Insurance Policy against Third Party Liability shall be amended as follows:

1. Article (13) of Chapter one (General Conditions) shall be renumbered as paragraph (a) of the said Article, and the clause "for the type and year of manufacture of the vehicle" shall be inserted after the words "suitable repair shops ....".
    

2. A paragraph (b) shall be added to Article (13) as follows:

   (b) For the damaged motor vehicle, insured against loss and damage at an insurance company with the condition of repair within the Agency, the repair shall be carried out within the Agency's repair shops pursuant to this condition. The insurance company insuring the loss and damage has the right of recourse against the Third Party liability insurance company in accordance with the following reimbursements basis:

   1) The reimbursement for the motor vehicle that has passed more than one year from its first registration or its use and until the end of the second year shall be after deduction of 15% of the value of the final repair bill.

   2) The reimbursement for the motor vehicle that has passed more than two years from its first registration or its use and until the end of the third year shall be after deduction of 30% of the value of the final repair bill.

   3) In case more than three years have lapsed since the first registration or use of the motor vehicle, the company shall abide by repairing the damaged vehicle at suitable repair shops for the type and year of manufacture of the vehicle. The damaged parts shall be replaced with original parts of the same standard, provided that, if the agreement between the Loss and Damage Insurance Company and the insured has the condition that "repair shall be within the agency", this condition shall remain effective.

   4) The existing rights between companies prior to the implementation of this regulation shall be observed.

   3. A clause (fourth) shall be added to the provisions of paragraph (e) of Chapter Two "Obligations of the Insurance Company" as follows:

   "Fourth: In case of the entitlement to the loss of benefit allowance (substitute motor vehicle) and the Affected Third Party has insurance against loss and damage and Third Party Liability , he shall be entitled, for the purpose of obtaining the loss of benefit allowance (substitute motor vehicle) to claim directly to his company, which has the right of recourse for same amount paid against the insurance company of the insured ,who caused the accident and has insurance against Third Party Liability"

Article (2)

Amendments of some provisions of Chapter One "General Conditions of the Unified Motor Vehicle Insurance Policy against Loss and Damage to read as follows:

1. To delete paragraph (b) of Article (8) and replace it with the following text: "The Insured shall be liable to pay the dues arising on the vehicle before receiving the compensation and to submit the required papers and power of attorney and attend before the competent departments, if necessary in order to transfer the ownership of the motor vehicle to the company. Whereas, in case there is mortgage, the company shall undertake without delay the communication with the competent entity (the owners of mortgages) to obtain a non-objection letter to transfer the ownership of the salvage of the vehicle to the company.

2. Two new paragraphs (13) and (14) shall be added as follows:

(13) In case of the entitlement to the loss of benefit allowance (substitute motor vehicle) and the Affected Third Party has insurance against loss and damage and Third Party Liability , he shall be entitled, for the purpose of obtaining the loss of benefit allowance (substitute motor vehicle) to claim directly against his company ,which has the right to claim the for same amount paid to the insurance company of the insured ,who caused the accident and has insurance against Third Party Liability in accordance with the rules specified in the Third Party Liability policy"

(14) If the fixed and irreplaceable parts of the motor vehicle such as chassis or pillars are damaged and need cutting, tightening or welding as a result of the accident, the motor vehicle shall be considered total loss and the Company shall be obliged to pay the compensation according to the value specified in the policy between the Company and the insured"

Article (3)

This decision shall take effect as of 01/01/2018 and shall be published in the Official Gazette.