In its session held on September 30, 2025, the Council of Ministers approved allowing insurance companies to grant an incentive discount of up to 10% on the value of mandatory motor insurance policies (for bodily injury and third-party liability) when paid through electronic payment methods, following a recommendation by the Palestine Capital Market Authority (PCMA).
This recommendation comes as part of the PCMA’s efforts to encourage the insurance sector’s adoption of electronic payment systems, in alignment with the government’s digital transformation agenda.
The Chairman of the PCMA Board of Directors, Mr. Ammar Aker, emphasized that in line with the PCMA’s mandate to regulate and develop the sectors under its supervision, the PCMA underscores the importance of advancing digital transformation within the financial sectors it oversees—particularly the insurance sector. He highlighted the need for this progress to occur within a coherent legislative and regulatory framework consistent with related laws and regulations.
Mr. Aker added that this decision is expected to generate positive economic impacts, including enhancing liquidity for insurance companies, improving their financial performance, increasing operational efficiency, and reducing reliance on cash transactions, checks, and promissory notes.
Meanwhile, the Director General of the Insurance Directorate at the PCMA, Mr. Amjad Qabha, stated that the decision supports the PCMA’s strategy to improve the efficiency and financial stability of the insurance sector by providing easy and accessible payment alternatives. Citizens will benefit from the incentive discount when paying their insurance premiums through approved electronic payment channels, which will further the government’s efforts to promote digital transformation and expand electronic payment usage.
He added that this shift is expected to accelerate claims settlement processes within insurance companies and reduce legal disputes.
Over the past period, the PCMA has worked to prepare the insurance sector for the adoption of electronic payments by organizing a series of meetings and specialized workshops with relevant stakeholders. This effort aligns with the PCMA’s vision to keep pace with developments in this field, enhance and expand insurance services, and better serve policyholders.
It is worth noting that the PCMA will soon issue the necessary regulations and directives for the insurance sector to implement the Cabinet’s decision in accordance with established procedures.