The PIF Renews Member Companies’ Commitment to Motor Insurance Regulations
Al-Eqtisadi – The Federation of Palestinian Insurance Companies announced the renewal of member companies’ commitment to the instructions of the Palestine Capital Market Authority regarding motor third-party liability and compulsory insurance tariffs.
The Federation’s Board of Directors Decision No. (3) on regulating motor insurance introduced a package of measures that have come into effect, aimed at strengthening companies’ compliance with Decision No. (1) of 2017 and Decision No. (2) of 2017 issued by the Capital Market Authority.
According to the decision, the Federation stressed the need to adhere to the tariff set by the Capital Market Authority as the approved minimum. It also noted the possibility of granting a discount of up to 10% for payments made through electronic payment channels, in line with the Authority’s decision.
The measures include prohibiting the transfer of agents, producers, and production staff between insurance companies without obtaining an unconditional clearance certificate. Companies are also required to comply with the commissions approved by the Capital Market Authority and are prohibited from offering any additional benefits.
Regarding payment mechanisms, the decision stipulates that 50% of the motor insurance premiums for third-party liability and compulsory insurance must be paid in cash, while the remaining amount, including comprehensive insurance, may be settled through a maximum of six cheques.
The Federation called on all companies to comply with these instructions starting from 14/04/2026 and to circulate them among employees and all sales channels, each according to its region.
For his part, Anwar Al-Shanti, Chairman of the Federation of Palestinian Insurance Companies, stated that this announcement comes within the framework of renewing compliance with the Capital Market Authority’s instructions regarding tariffs and payment mechanisms for third-party liability and compulsory insurance policies.
He explained that this commitment strengthens the insurance sector, serves the interests of all stakeholders, and supports the sector’s solvency and resilience amid current conditions that impose unprecedented pressures, such as court rulings, rising compensation costs, liquidity shortages, and concerns over the fairness of medical committee reports, among other factors that have negatively affected the insurance industry and the national economy as a whole.
Al-Shanti added that the decision would encourage policyholders to use available electronic payment channels, enabling them to obtain discounts of up to 10%, as well as to pay motor insurance premiums in installments through banking facilities for up to 12 months without additional fees.
Recent data issued by the Palestine Capital Market Authority showed that expenses related to motor insurance contracts across all companies reached approximately USD 175 million by September 30, 2025, representing 89% of the revenues from motor insurance contracts for the same period.
Motor insurance contracts account for 69% of total insurance contracts, making it one of the largest sectors in the local market. According to the latest official figures issued by the Ministry of Transport, the number of licensed vehicles in the West Bank reached approximately 355,000 out of around 572,000 vehicles by the end of 2025.
The insurance market includes 12 companies, 234 agents and producers, and 23 brokers.
