UAE Insurance Authority Sets New Regulations for Insurance Broking

29 December 2020

The UAE Insurance Authority has rolled out new draft regulations for insurance brokerage and online transactions. This draft has 13 chapters and 38 articles that explain insurance broking like governance, registration and licensing, the insurance broker and insurance company roles to the broker, insurance broker’s roles, solvency, mergers, financial reports and disclosures, supervisions, dispute settlements, and penalties.

Who is an Insurance Broker?

The new draft law defines an insurance broker as a juridical individual who intervenes in insurance or reinsurance activities between the insurance/reinsurance proposer and an insurance/reinsurance company and receives a commission from the insurance/reinsurance company.

The provisions of the new draft apply to distribution channels, companies, and any other insurance-related business approved by the authority. These regulations focus on shielding policyholders and guarantee that they receive value for their money by purchasing various products.

The New Insurance Law Provisions

The new insurance law requires an insurance broker to adhere to these regulations for electronic transactions.

Criteria for Insurance Brokerage Licensing

A company must be established in the United Arab Emirates and registered based on the Commercial Companies Law. The company should own a share capital of AED 3 million or more. You need to pay AED 10 million or more and register with the UAE Commercial Law if you run a branch of a financial Free Zone or a Foreign Company. You can consult a law firm in Dubai to help you with these procedures.

It is mandatory to submit an unconditional Letter of Guarantee from a bank; this is paid on demand to the Insurance Authority chairman board of directors. This can be fully or partially liquidated to guarantee the broker’s settlement of transactions and obligations.

You must obtain an insurance policy to cover your profession at a value of AED 2 million for UAE companies and a minimum of AED 3 million for a financial Free Zone or a Foreign Company branch in the UAE.

You must appoint the administrative and technical staff continually. You need convenient headquarters, software, and technical systems for your profession. It is also mandatory to have an internal control system to govern applications of laws, regulations, resolutions, and circulars in adherence to the Insurance Authority regulations. The next step is to submit the agreement between you and the bank, pay the full fees, and comply with any extra regulations. The Insurance Authority approves or rejects the application within 20 working days.

Technical and Administrative Staff

The technical staff of an insurance broker has specific regulations. It is a requirement to appoint at least 1 General Manager, Internal Auditor, Operation Manager, and 1 qualified worker for each type of insurance. Below are the qualifications for the appointment of technical and administrative staff;

A natural individual enjoying full capacity
An individual of good conduct; never been sentenced for freedom restricting punishment in a moral decadency crime without rehabilitation.
Pays his commercial debts even if not declared bankruptcy.

You need to notify the Insurance Authority of appointments, transfers, terminations, or modifications within 60 days.

Roles of the Insurance Broker

You must make internal by-laws and submit a copy to the Insurance Authority Dubai offices within 3 months after obtaining a license. You must review and update the internal control system continually; this ensures that you have proper laws, regulations, resolutions, and circulars.

It is necessary to design an Operations Guide for periodical updates, risk management, and review it according to the rules. Create a professional code of conduct for the staff and supervise and plan their duties according to the Insurance Authority (AI). Collaborate with the internal controller to enable employees to perform their tasks and report any violations to the authority.

You can only dismiss the internal controller by the board of management or board of directors’ decision; this happens if you notify the internal controller and IA of the dismissal at least 30 working days before the dismissal.

Penalties

The IA developed penalties so that insurance brokers do not violate the instructions, regulations, laws, and circulars. If you violate any laws, you receive a warning that compels you to remove the infringement and ensure this does not happen in the future. The IA might suspend you from practicing for a maximum period of 1 year.

The Insurance Authority cancels licenses in the following incidences;

Violating any license conditions
Gross breach of your obligations
Failure to renew your license (delay paying fines or failure to pay renewal fees)
A final bank declaration associating you with bankruptcy
The dissolution and liquidation of your practice
Failure to practice your licensed profession within 6 months after obtaining the license
If you obtained your license through false information.

The insurance sector in the United Arab Emirates is expected to rise; this is why the Insurance Authority issued new regulations to govern insurance brokerage. Brokers have to adhere to set regulations or face penalties. Technical and administrative staff also has to meet various qualifications. This allows brokers to have a set of laws to refer to.

Read Also:

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

View all posts

6 questions to ask a driver’s license lawyer before you hire a professional for your case!

Driving has become a very significant part of our daily lives. We rely on vehicles for work (carrying heavy loads, driving jobs), to get to school, shopping, commuting to work, and running errands. If issues arise with your driving license, it could cause a great disruption in your daily routine. If you have a case because of issues with your driver's license, you need to hire a professional to represent you. The following six questions will help you choose the best driver's license lawyer to hire. How much experience do you have with driver's license cases? All issues related to driver's licenses are governed by a set of unique laws. When you have a veteran lawyer to represent you, it increases your chance of getting back your driver's license. This is because the lawyer will have a better understanding of the laws and how they can use them in your case. If you hire a lawyer with extensive experience and many winnings, you will improve your chances of winning your case. Visit this site to find the best driver's license lawyers for your case. Do you have special training or knowledge that will benefit my case? Some lawyers have gone through several other pieces of training to add to their law degrees. Ask the lawyer if they have further training and whether they have useful insight on the best strategy to use in your case. If you are not aware of why your license is suspended, you need to ask your lawyer if they can find out. What are my possible outcomes? Unpaid citations and tickets from your past can unexpectedly come back to haunt you. You need to ask the lawyer the expected outcomes in the case you have. Their response will help you determine how much enthusiasm they will put into helping you solve your case. The reaction of the driver's license lawyer will also help you prepare psychologically for the outcomes stated once you have hired them for your case. What are the costs and payment options? When looking to hire a driver's license lawyer, it is best to choose one with high success rates, and whom you can comfortably afford. This is among the most essential elements to consider when hiring. Ask the lawyer for a breakdown of the overall cost and make sure to find out if there are any hidden fees. The lawyer should also explain the payment options in their firm so that you can employ an accurate payment plan. Remember that you may be required to pay a fine for your case; hence put that into consideration while planning your finances. What is your working philosophy for your cases? This question will help you determine the driver's license lawyer’s personality and whether you will be comfortable working with them. Ask this question to also identify the lawyer’s style and strategy for such cases, so that you can evaluate how well they will represent you in court. Will you be the one handling my case? It is important to identify the person you will contact and communicate with throughout your case. Most cases are handled by several attorneys and paralegals. Ensure you get information on whom you can call to ask questions and get updates regarding your case. Conclusion Choosing a driver's license lawyer can be challenging. However, we have made it easier for you by giving you questions to ask to help you hire the best. We hope you will find an excellent professional for your case. Read Also: Things To Consider Before Hiring A Lawyer Is It Possible To Get A Settlement From A Car Accident Without A Lawyer? 3 Personality Traits of a Successful and High-Ranking Criminal Lawyer Rocket Lawyer And ZenBusiness Services For Business

What Does A Probate Lawyer Do?

Estate and assets are essential aspects of our life. We live in this world, and we need a place to stay, and that is also with our own identity. The shelter is the fundamental thing that everyone craves for an estate and works hard to acquire. When we talk about an estate, we talk about generations. Estate acquired once will stay for generations, and that is the process of staying and working and developing a family. Estate is an interesting topic to discuss as it can not be decreased. A person can be deceased, but his or her estate remains intact for the next generation. This article is based on estate concerns, and that is called ‘probate’ in terms of the law. Most people keep their will for their estates so the next generation can consider pieces of the particular estate and are called beneficiaries. It becomes hard for the beneficiaries to acquire an estate of assets if the will was not created by the decedent. Here comes the problem related to estate, and there is also a solution for that. Only the Las Vegas Probate Lawyers can help you to mitigate any kind of estate problems. What Is Probate? It does not matter if the will was made or not, but the law is always there for you, and the Las Vegas Probate Lawyers are there to give you the justice that you deserve. This section is very important for you to understand as probate is a related term of law that considers estate problems. When the will is certified under the seal of the court and the jurisdiction allows the administration of the testator, their probate comes. Probate can work in various ways. Probate becomes very crucial for the immovable assets between states. Probate is not for all but only for the executor who is granted under the will. How Does Probate Work? The probate process is very lengthy and confusing for the common people, and it can take upto many years depending on the complexity of an estate. It does not matter if the decedent presented a will or not, but it would definitely help the court and the beneficiary to move the case forward quickly with the presence of a will in advance. No matter what the situation is, the court will appoint a family member of the decedent to find out the assets and collect those. Court rules need to be followed by the representative, and depending on the conditions, the creditor's claims can be fulfilled or rejected. After the discovery of the assets, the court will ask the family representative to show proper accounting, and according to that, the estate will be distributed to the beneficiaries. What Does A Probate Lawyer Do? In probate, Las Vegas Probate Lawyers have many things to do and an important role to play for you. It doesn't matter who you are, the creditor or the beneficiary or executor; different legal matters can be discussed with you. The Las Vegas Probate Lawyers know the estate laws more than anyone else, and they have so many things to consider at once for you. During a probate cycle, a probate lawyer follows various steps- Secure the assets by identifying them.Pay bills and mitigate debts.Handle the whole process of paperwork. Resolves all kinds of tax issues. Understand the financial records and bring down the approval of the court to distribute the assets and estate to the beneficiaries. Is It Necessary To Have A Probate Lawyer? There are several things to consider when you go for probate, and that will not be possible without the involvement of a professional lawyer. Thus it's better to follow the instructions of the court than to lose your part in the estate by the law. Law is not biased, but if you do not know the procedures, then there are so many manipulations available to dismiss your credit on the case. Hire An Attorney Filing the details and managing the whole paperwork is not your task, and you are not expert enough to do that. Moreover, probate is already a lengthy process, and you should hire an attorney to make it as quickly as possible. This is not the time to think, but to hire one and a professional attorney will be your main assistance in such a case. Read Also: Picking the Right Law Firm for You and Your Family5 Easy Estate Planning Tips to Help You Plan for the FutureWhy Should You Hire An Estate Planning Lawyer In Las Vegas?

Here’s What You Do After Being Involved in an Accident at Work

When you go to work each day, you probably expect to return home safely. Of course, there are jobs that are more dangerous than others, like law enforcement positions or construction work, but for the most part, people don’t apply for a job they expect to be injured in regularly. Yet, accidents at work can happen any time and anywhere. Victims of on-the-job injuries are required to file for worker’s compensation benefits. These benefits help you to pay your medical bills and compensate for time off of work due to your injury, but they don’t usually cover everything. To ensure you get all of the rights that you are entitled to after an accident at work, here is what you need to do. Your Next Steps After an On-the-Job Injury First, you’ll need to be sure to get medical care as soon as possible. If it’s a serious injury, head straight to the emergency room without any other concerns, but then follow up with your employer for a list of physicians who can continue treating you under your worker’s compensation plan. Skipping this step can result in denial of any other benefits, including lost wages. You’ll need to be sure you follow the proper protocols for reporting your injury, too. Heading to the emergency room is the one time you can skip this step, but be sure that you file a report of your injury as soon as you can to your employer. In the report, document all details of the accident and your injury. If you went to the hospital afterward, include the hospital name and dates and copies of any discharge records you were given. This report is crucial, no matter how minor you feel your injuries are because more serious injuries are often silent and crop up later on, but filing for a worker’s compensation claim has strict deadlines attached to it. Once you have been assigned a doctor to go to for treatment, be sure to attend your visits regularly and follow the doctor’s orders. If you stop treating before the doctor releases you, you may lose your worker’s compensation benefits, but even worse, you may end up with more serious injuries if you were not fully healed. As you are going through these steps, take care to document all of your missed work and save the receipts for any money that you spend on your treatment. These out-of-pocket expenses can include everything from gas mileage to head to the doctor to prescriptions and medical treatment that was not paid for by your worker’s compensation plan. Should you choose to file a lawsuit later, you may be able to recoup all of these expenses and more. Finally, take the time to talk to knowledgable workers’ compensation accident attorneys. They can guide you along this difficult path, advise you on what you can expect to deal with, and inform you of your rights. Whether you think you may choose to pursue a lawsuit or not, it’s always a smart idea to know your legal options. Follow These Steps to Your Recovery: The most important aspect that happens after an accident is your recovery. By following these few basic steps, you should have nothing standing in the way of your healing and you can focus on getting better rather than the stress of getting your medical treatment covered. Read Also: Do I Need A Lawyer For A Car Accident That Wasn’t My Fault? How To Find A Personal Injury Attorney On Any Budget Discovering And Recovering From Identify Theft Why Skilled Workers Will Own The Future

UAE Insurance Authority Sets New Regulations for Insurance Broking

Who is an Insurance Broker?

The New Insurance Law Provisions