Insurance Authority has proposed amendments in the provision of comprehensive insurance coverage for lessees

The Insurance Authority has suggested changes to the Insurance Law's comprehensive insurance coverage for lessees by adding coverage for the vehicle's driver, including the lessee's family members, drivers the lessee sponsors, and drivers employed by the lessee under an employment contract.

The authority clarified that in order to safeguard the interests of the insured and other beneficiaries, it has been working on a proposed adjustment to the rules governing comprehensive insurance for cars owned by people who are leasing their cars.

Protecting the insured's rights and advancing the auto insurance industry are the goals of the proposed draft. It calls for changing Article 2 of the Insurance Law, specifically Paragraph 11, which states, "Driver: The person authorized to drive the vehicle and whose name is recorded in the policy schedule."

The suggested modification states, "Driver: The lessee and the driver related to the lessee, including his/her father, mother, husband, wife, son, daughter, brother, sister, or the driver under the sponsorship of the lessee or working for the lessee under an employment contract."

Additionally, the draft added an amendment to Article 5 Paragraph 2, which states that "The lessor must obtain insurance quotes from at least three companies and select the best and lowest-priced quote from them and present it to the lessee." Notably, the regulations pertaining to comprehensive insurance of personal auto lease financing went into effect on November 1, 2020.