The Palestinian Cabinet has approved a proposal to allow insurers to grant a discount of up to 10% on premiums for mandatory vehicle insurance policies paid via electronic payment methods.
This approval followed a recommendation by the Capital Market Authority (CMA) to incentivise online premium payments, in line with the government's push towards digital transformation, reported Sada News.
Mr Ammar Aker, CMA chairman, said that the Authority emphasises enhancing digital transformation in the financial sectors it oversees, especially the insurance sector.
CMA director of insurance, Mr Amjad Qabaha, stated that the Cabinet’s approval supports 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. The insurance industry will be able to speed up claims processing and reduce legal disputes.
The Authority will issue the necessary regulations and guidelines for the insurance sector to implement the Cabinet's decision. It has prepared the insurance sector to adopt electronic payment methods by conducting several meetings and specialised workshops with relevant stakeholders.