The Palestine Capital Market Authority (PCMA) announced that Palestine’s Council of Ministers has approved, following a PCMA recommendation, allowing insurance companies to grant an incentive discount of up to 10% on mandatory motor insurance policies when premiums are paid through electronic payment methods. The scope covers bodily injury and third-party liability. PCMA framed the measure as a step to accelerate adoption of electronic payments in the insurance sector and align with the government’s digital transformation agenda. The authority expects the shift to support insurers’ liquidity, financial performance and operational efficiency, while reducing reliance on cash transactions, cheques and promissory notes; it also linked wider use of electronic payments to faster claims settlement and fewer legal disputes. PCMA said it will soon issue the necessary regulations and directives for the insurance sector to implement the Cabinet’s decision in line with established procedures.
Palestine Capital Market Authority 2025-10-21
Palestine Capital Market Authority to implement Cabinet-approved up to 10% discount for electronic payment of mandatory motor insurance
The Palestine Capital Market Authority announced that the Council of Ministers approved a PCMA recommendation to allow insurance companies to offer up to a 10% discount on mandatory motor insurance premiums paid electronically. This initiative aims to boost electronic payment adoption in the insurance sector, supporting liquidity, financial performance, and operational efficiency while reducing cash reliance. The PCMA will issue regulations to implement this.