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

What Independent Contractors Need to Know about Workers Compensation

Are you an independent contractor? What if a worker (employee) gets injured during the line of work? Would they compensate according to the fair rights of workers? Where many companies ought to ignore the rights of their workers or may not be completely aware requires the rule book again. If this happens, then definitely it is time to hire a Construction Workers Compensation Lawyer in Oregon to help you get the justice you deserve. Though there is a Seattle worker’s compensation attorney and even Texas is loaded with it, therefore rather than going unethical with your worker regarding his compensation rights, you might want to get an attorney. If you are an independent contractor you need to know about your workers' compensation rights. It’s the best way to stay in touch with reality and not even get cheated on by fake compensation claims of your workers. What does workers’ compensation cover? It is like an insurance program for your workers. This program covers their medical coverage, rehab expenses, and even partial wages when the worker gets injured during the work process. The new system of workers compensation replaces the traditional way of using the party that was somehow the reason for the injury during work. In exchange for not suing their employer and getting certain benefits in return for the injury or damage. Mostly workers’ compensation is governed under state law. Factors to be considered: The court determines whether the person is an independent contractor or a worker who fully deserves the compensation and is open to a number of benefits. These factors may be made under the state law that governs workers’ compensation or under the state of common laws. Scope of the Work An employee may work for one employer but when it comes to an independent contractor, they may consist of more than one employer. Whereas, employees are given specific working hours and independent employees set their own working hours. An employee works at a specific provided location and the situation is vice-versa for an independent contractor because he or she can choose any location for work. Control, Cost, Contract The most important distinction between an employee and independent contractors is the employer’s control over their actions. Independent contractors mostly fit the work according to how they would want it while the employees are scrutinized with their format of doing work. Keeping in mind that independent contractors are generally expected to pay for cost affiliated to work. Whereas, employees don’t have to bear the cost of the work at all. Employees are generally hired “at-will” to work and it can be ended by both parties. However, the independent contractor works under an agreement of time-span which is not amendable. You need Legal Assistance! Courts can evaluate the situation and easily encounter if the independent contractor falls for workers’ compensation or not. It is not only up to the employers. Only the legal guidance can state how different each case of an independent contractor or employee is for compensation with several rules and factors. If you are classified as an independent contractor doesn’t mean you don’t get workers’ compensation. It all depends on your case. Read Also: Shouldn’t On-Demand Workers Get Workers’ Compensation? Atlanta Law Experts: Know about Back Injuries Compensation Looking for a Gardener: 8 Questions to Ask Before Hiring a Professional

What Are The Effective Ways To Communicate With A Personal Injury Lawyer

Did you know that many people do not contact a personal injury lawyer because they are unsure about how to do so? While this might not be the only reason why people don’t hire a personal injury lawyer, it is certainly one of them. Not knowing what to say to a lawyer makes them think their case is out of their hands and simply sit, hoping for the best. Or even people do find the courage to call a lawyer; they call the very first number they get from their friends and family members and will stick with that. Personal injury lawyers are expensive but become even more expensive when you don’t choose the right one for your case. In addition, if you do not have the right representative in the courtroom, you may never be able to collect the compensation you want to recover. Hence, it is important that you hire the right personal injury lawyer. And for that, you need to communicate with the lawyer effectively. Effective Ways To Communicate With A Personal Injury Lawyer The goal here is not only to hire the right personal injury lawyer for your case but also the one that understands your case to the core. This can only be achieved with effective communication between you and the lawyer. That being said, we have listed down the most effective ways to communicate with a personal injury lawyer. 1. Prepare A List Of Questions You will never feel comfortable, whether this is your first time or you have already experienced filing a personal injury lawsuit. Every case is different and comes with different complexities. Hence, you probably want to know - What are the responsibilities?What can be the best-case scenario.?What can be the worst-case scenario?How long can it take to solve the case?How much will the lawyer charge?How often does the lawyer update you about the case?What are your rights? There are just too many things that you need to be aware of. The best thing is to prepare a list of questions like the above and ask them one by one. While it’s true that some personal injury lawyers might not seem approachable, you must avoid them. Instead, choose some like a Personal Injury Lawyer in Pasadena. Every member is friendly and will never make you feel you are talking to a lawyer. 2. Share Every Piece Of Information If you keep certain information to yourself and do not tell your lawyer, you might risk your case. Most people are afraid that they are at fault and fear the consequences of coming out if they tell everything to the lawyer. Guess what, it probably will. It will cause more problems for you if your lawyers are unaware of certain information where they cannot defend you. On the other hand, you must know that your lawyer is a professional and probably has a number of ways to pull you out of a difficult situation. What you think might be devastating for your case - but as a lawyer, they are dealing with it every day. If the case is so clean, why do you need a lawyer then? So, instead of hiding any information from your lawyers, tell them everything you know about the case. 3. Communicate Your Desired Result Sometimes it's hard to come up with the desired result. You want to fight the case, but at the same time, you want the desired result. This mostly happens when the other party is someone you know. If that is the case, it is possible that the case will not even reach the courtroom and will be solved during the mediation phase. If you want to return to work, tell your lawyer. There might be some provision of the laws that affect your choice. The better you keep our lawyers informed, the better positions they will be in to help you out. Be Honest With Your Personal Injury Lawyer When you file a personal injury lawsuit, you need to provide extensive information to the lawyer so that they can build the case effectively. The document also helps them to prepare arguments made by the insurance company. The information that you are asked to submit is as follows. Financial Situation: Yes, discussing your past or current financial situation might not help your personal injury lawyer, but it will certainly help them give you better advice. For instance, if you are suffering from any financial hardship, your lawyers can ensure that the settlement is structured in such a way that it protects you from creditors. Medical History: It is important that you be transparent about your medical history. An accurate medical history will help your personal injury lawyer build the perfect case for you. You must know that a preexisting condition doesn’t prohibit you from seeking compensation. If your lawyer is aware of the past injuries, he can accurately evaluate the compensation. Criminal History: If you have any past criminal history, disclose it. This will help your personal injury lawyer build the case on the past data as well. In addition, you will even have an idea of what the outcome of the case will be. Potential fault: There can be multiple parties at fault, depending on the circumstances. However, the court evaluates the severity of the fault by Comparative Negligence Law and then looks at the compensation claim. That means, even if you are partly at fault, if it is less than the other party, you recover the compensation claim. Ask Questions! While talking with a personal injury lawyer, you might stand among legal terms you don’t understand. Instead of just nodding your head that you understand, ask your lawyer about the meaning and how they are used. Letting your personal injury lawyer know will help them get a better idea of your understanding of the case. Remember your aim is to understand the legal framework around the personal injury lawsuit. Asking questions to your personal lawyer is the best way to communicate. You will eventually find yourself having a valuable conversation related to your case. Additional Resource: Top 10 Colorado Springs Personal Injury AttorneysWhat Personal Injury Law in California InvolvesFiling a Personal Injury Claim in Chicago5 CRITICAL THINGS TO LEARN ABOUT PERSONAL INJURY CLAIMS IN ANN ARBOR

Accident By Unlicensed Driver: How To File For A Compensation Claim?

Pursuing Compensation for a car accident that is caused by a rash driver driving under intoxication, is one thing. But if you are hit by an individual who is unlicensed, things might be a bit difficult. Now, the question might dance into your bosom…how will you be able to pursue compensation for your damages? No, you are mistaken, not a million-dollar question but a bit of awareness. However, if you can’t withstand the enquiring rat within, then you could consult a DUI lawyer in Phoenix. In this article, we are going to discuss the whereabouts of Accidents caused by unlicensed drivers and claim compensation. So without further ado, let's get down to the brass tacks. The Dangers Of Unlicensed Drivers We know it makes you a bit jittery to hear that claims from unlicensed drivers are a bit difficult to extract. Well, why are the drivers unlicensed? Unlicensed drivers are unlicensed for some reason. The most deadening threat with the unlicensed drivers is that they are not trained. They hit the streets with their lives and others at stake. And you know what? They are ignorant of the basic rules and regulations of the roads. Let us put forth some hard facts to digest. According to the reading AAA Foundation, a massive 1 in 5 accidents (18.2%) are caused by unlicensed drivers. To get more inside, around 6.7% of the drives have their respective DLs revoked or suspended. Around 1.1% of them have their DLs not revoked. And the best for you…around 0.5% of the drivers are simply never licensed. So how caustic, sarcastic, and costly it is for you! Just have thought about it. You may like to read: Pros & Cons Of Hiring A Worker’s Compensation Lawyer Penalties For Driving Without Licence So do you think that you are almost helpless when hit by unlicensed drivers? So do you think that the US laws for Unlicensed drivers are like parents' soft corner for Ailing children? That's not the case. Laws in the US for unlicensed drivers are extremely tough. Let us feed you with an example. According to chapter 521 of the Transportation Code, if anyone is found to be violating the provisions could be charged with a misdemeanor. And yes Penalties waiting. A $200 fine for the first violation.A fine of $50 to $200 for the second time.And the big one, a fine of $500, and between 72 hours to 6 Months of Jail you are caught for the third time. These are through the basics, there is more to it. In such a case consult a Phoenix DUI Lawyer for greater detail. How To File A Lawsuit Against Unlicensed Drivers? Suppose the situation arises that the driver who caused your accident is unlicenced and he/she was driving someone else’s car with the permission of the owner. In that case, you are able to pursue a claim through the insurance policy of the owner. In this scenario let us tell you that successfully extracting claims turn out to be extremely difficult simply because the driver is unlicensed. You will have to go through some entanglement and you will not be able to manage it all alone. Consult a Phoenix DUI Lawyer in that case. It will be easier for you. Now in a second instance, you might meet with an accident caused by a driver who is not licensed. And moreover, the individual may not be under some kind of insurance coverage. Let me give you an example of Illinois laws. According to the laws in Illinois, all drivers must have a minimum level of liability insurance. This is mandatory. Now how will you be recovering your claims from a person who is not insured? In that case, you could file a personal injury lawsuit against the other driver or turn to a personal uninsured motorist mortgage. That might save you on this journey. Conclusion Having discussed the provision let me assure you one thing. No, we're not here to frighten you here. By this time you have already known that Personal Injury Claims especially when you are hit by an unlicensed driver are tough. So what to do now? Well, you have your options will open. But to exploit the situation to the fullest and ensure extraction of the compensation, you need to consult a lawyer's advice. And DUI lawyer in Phoenix has the capacity to guide you in your exigency. Read Also: Tips and Tricks to Hire the Best Lawyer for Your CaseQuestions To Ask Your Fort Worth Car Accident LawyerHave you been in a Semi-Truck Accident? Here Are 4 Reasons You Need to Hire a Lawyer Immediately

UAE Insurance Authority Sets New Regulations for Insurance Broking

Who is an Insurance Broker?

The New Insurance Law Provisions