NUMEROUS VIOLATIONS FOUND IN CAR OFFICES

  • 27/10/2022

Kuwait City: In collaboration with staff from the Ministry of the Interior, the Ministry of Commerce and Industry carried out a thorough investigation of automobile industry transactions, including leasing firms and offices that specialise in buying and selling from outside the agency. According to reliable sources, the Commerce Ministry's recent decision to close the well-known car buying and selling office coincided with an increase in the scrutiny of these authorities' financial records as part of a broader supervisory initiative towards this industry. 


The sources noted that despite the seemingly endless list of newly observed violations, there are no indications of money laundering or terrorist financing schemes. The list's inclusion of multiple infractions, not the least of which was requiring car renters to pay the rental cost, is helpful. 

According to the sources, some offices collect from their clients the rental value for the time the rented car was out of commission even though it is covered by a comprehensive insurance policy, meaning that these offices obtain the rental value twice. This was discovered by members of the committee established by the ministries of commerce and the interior. One of them is collecting money from a customer that is not owed, which is against the rules. 

According to the sources, all rental car companies are required by law to insure their vehicles with comprehensive insurance, and in the event that one of these vehicles breaks down, the renter is not required by law to pay the rental value for the duration of the period during which his rental benefit is halted, regardless of how long that period may be.

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