Bounced cheques see decline in 2017: report
‘Bank deposits climb’
KUWAIT CITY, Feb 15: The total value of cheques presented to the local banks in Kuwait in 2017 increased by KD 3 billion from KD 23.3 billion in 2016 to KD 26.2 billion in 2017, representing a rise of 12.7 percent, reports Al-Rai daily.
Recent data put together by the daily based on official Central Bank of Kuwait statistics revealed the value of cheques rose significantly but the number of clients that were involved in the transactions did not increase in an equal manner, indicating the cheques increased by 1 percent value of 53,000 cheques worth KD 5.276 million in 2017 compared to KD 5.223 million in 2016.
On the contrary, slight difference of 0.86 percent signifying 2,108 was recorded in the number of clients that reached 246,900 in 2017 compared to 244,800 in 2016.
Talking about bounced cheques that were rejected for lack of sufficient funds, its value rose by 8 percent equivalent to KD 5 million to reach KD 67.6 million in 2017 compared to KD 62.6 million in 2016.
The total number of bounced cheques fell by 6 percent value of 366 cheques recording 5,800 in 2017 compared to 6,200 in 2016, while the number of clients involved in bounced cheques dropped by 12 percent with a difference of 473 clients representing 3,400 in 2017 compared to 3,900 in 2016.
Kuwait Insurance Federation recently organized a workshop at Kuwait Chamber of Commerce and Industry (KCCI) with the participation of the Investigation Department at the Ministry of Interior, reports Al-Rai daily.
The workshop was aimed at looking into the mechanism for enforcing the reconciliation order on minor traffic accidents.
Secretary General of the federation Adel Al-Rumaih affirmed that the federation and insurance companies support the enforcement of the law which helps those injured in minor traffic accidents receive compensation within a short period. He also stressed the importance of protecting the rights of insurance companies that are responsible for the money of shareholders, pointing out they are profitable companies.
On the other hand, Deputy Director of the Investigation Department in the Interior Ministry Jamal Al-Reish confirmed the ministry is keen on activating Law No. 52/2001 which is applicable to minor traffic accidents. He explained that in case the person who caused the accident admits responsibility, he will pay KD 20 fine and then receive the reconciliation order which will be handed over to the victim who will go directly to the insurance company to receive compensation.
He pointed out that signing the reconciliation order is optional as it requires confession of the person who caused the accident. In some cases, the investigator might not allow issuance of a reconciliation order, that is, if the accident happened due to grave traffic violation such as breaking the red light, driving beyond the speed limit, driving under the influence of drugs and driving without a license.