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.

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Understanding Legal Services In Australia: A Detailed Overview

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Federal Structure Australia operates under a federal system, meaning laws may come from the Federal or Commonwealth Government and individual state legislatures (New South Wales, Queensland, South Australia, Tasmania, Victoria, Western Australia) and two territories (Australian Capital Territory and Northern Territory). Each jurisdiction may have different laws and court services, which make for an intricate web of legal systems in Australia. Court Hierarchy Court hierarchies are essential in the operation of Australia's legal system. At its apex is the High Court of Australia as the supreme judicial authority; below it are federal and state/territory Supreme Courts, District/County Courts and Magistrates'/Local Courts, each with specific roles to fulfil in administering justice. Types Of Legal Services In Australia Legal services in Australia span many areas of law. Individual professionals specialise in specific aspects, offering their clients tailored advice and representation services. Criminal Law Services Criminal law addresses conduct that is perceived to be harmful to society. It determines what crimes exist and their respective penalties; legal services offered in this field may include representation in court proceedings, plea negotiation services, bail applications and appeals procedures, and advice regarding charges and their potential outcomes. Civil Law Services Civil law encompasses several fields, such as contracts, property transactions, family law matters, probate proceedings and tort law. Services provided under civil law include drafting and reviewing contracts, mediating disputes and providing advice regarding estate planning or real estate deals, divorce proceedings or even personal injury claims. Commercial And Corporate Law Services Commercial and corporate law services involve laws regulating businesses and commercial transactions. These services include advice regarding business structure and governance, employment law, intellectual property law, mergers and acquisitions, compliance with regulations and dispute resolution. The Role Of Legal Practitioners Lawyers (legal practitioners) are at the core of providing legal services. Australia's legal profession includes solicitors and barristers, each with unique roles and responsibilities. Solicitors Solicitors often work directly with clients. They offer advice, draft documents, negotiate with third parties and can represent clients in court proceedings. Solicitors work in various settings, including private practice, government departments and community legal centres. Barristers Barristers are specialists in court advocacy and litigation. Their role involves: Representing clients in court. Providing expert legal opinions. Advising solicitors and their clients on the direction of their cases. Barristers typically work independently, hired by solicitors to act on behalf of their clients. Access To Legal Services In Australia Access to legal services is essential for creating an equitable society. Australia has put in place various measures to ensure everyone can access legal advice and representation regardless of their financial means. Legal Aid Legal Aid commissions in each state and territory provide free or low-cost legal services to eligible individuals who cannot afford legal representation, particularly in family law, criminal law and civil law issues. They assist with matters such as family law proceedings, criminal law proceedings and civil law litigation proceedings. Community Legal Centres Community Legal Centres (CLCs) are independent non-profit organisations offering free legal services to those facing economic and social disadvantage. CLCs typically specialise in specific areas such as housing, immigration, social security and domestic violence law. Regulatory Environment Of Legal Services Australia's legal services industry is subject to stringent regulation to uphold high standards of professionalism, ethical conduct and competency among practitioners. Legal Profession Acts And Regulatory Bodies Each state and territory has a Legal Profession Act outlining the rules for practising law within their jurisdiction. Regulatory bodies for solicitors (law societies) and bar associations for barristers (bar associations) ensure adherence to these rules by offering guidance, professional development opportunities and disciplinary functions for compliance. Uniform Law Framework Some jurisdictions have enacted the Legal Profession Uniform Law (LPUL) to standardise legal services across state borders and to establish consistent rules for legal practitioners - creating an integrated and accessible legal market. 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Bail Bonds: What You Should Know

Paying bail bonds are not as simple as it seems. Knowing and having the right understanding of how these work, how it is determined, what the payment methods are, and other important issues are very important for anybody who is facing an arrest or who has an arrested loved one. There are several questions asked online to shed light and find out what bail bonds are all about which you may also have, click here to find out the answers. What is Bail? It is a term to describe the release of a person arrested for a criminal offense before the end of the criminal case. It can involve - but not every time - the defendant paying money to a court; this is not a punishment. It ensures the court that the defendant returns to the court now and then while the case is ongoing. It ensures the court that the defendant does not fail to go to court without having to keep him in custody all the time. Bails are significant in both ends – the arrested and the authorities. It ensures that people, no matter if they have a case at court, are free and, also, it avoids having to jam-pack jails with offenders, while have not been convicted yet. With it, offenders can be released almost in any stage of the criminal justice process, either immediately after arrest or while the case is ongoing and the court has not issued a sentence yet. This means that if someone gets arrested, three possible scenarios can come to place: he is arrested and released without charge; he is arrested, charged, and released on bail; or he is arrested, charged and is held in custody until the verdict of the case comes out. Schedule of Bails This is a list of the amount of money applied to individual crimes and can be paid in terms of bails. 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Examples for these are cases of treason, rebellion, terrorism, or conspiracy - a defendant charged with these crimes would most likely not be allowed to post bail. The Types of Bail Bonds Most of the time bail bonds are associated with money. The notion is that when one is arrested and he has the money, he can get out of jail immediately. However, it is more complicated than that. There are several questions asked online to shed light and know what bail bonds are all about which you may also have. Different states may have different types of bails, some may apply to another and in others, it may not. The different types may include cash bonds, signature bonds, property bonds, surety bonds, and others. Read Also: Under What Circumstances Can You Bring a Claim Against an Employer? Do I Need a Lawyer for a Car Accident that wasn't My Fault?

Along for the Ride: Passenger Rights in Vehicle Accidents

Although we are aware of the risks, driving is just a routine activity many of us do automatically, like brushing our teeth or grabbing a cup of coffee. We climb in the car intent on the destination or lost in thought, which is why automobile accidents are so jarring. Even a mild fender bender seems to stop everything in its tracks, instantly negating the importance of everything we were thinking or saying. Whether the situation results in serious injuries or none at all, it demands immediate attention. Passersby jockey to catch a glimpse of something interesting; police officers fill out reports; tow trucks haul away damaged cars. Sometimes, there aren’t even minor injuries, but, obviously, not everyone is so lucky. Trusting ourselves is one thing. Trusting someone else is entirely different. Every time someone gets into a passenger seat or the back seat, they're trusting that the driver will get to the destination safely. 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The last few decades have brought about major advances in safety that have reduced the probability of being seriously injured while riding in the front seat. Seat belts, airbags, and crumple zones equally benefit drivers and front-seat riders. According to a study by the Insurance Institute for Highway Safety (IIHS) and the Children's Hospital of Philadelphia, adults over age 55 were more likely to die in a crash while seated in the back than in the front – even if they were wearing seat belts. The study found that adults in the rear were more likely than adults in the front to sustain chest injuries, and there was some evidence of an elevated risk of head and neck injuries for restrained women seated in the rear compared with the front. The IIHS also recently performed front-overlap crash tests of seven small SUVs and found that certain models may have a big gap in safety between drivers and their passengers. The seven models received good ratings after the front driver's side corner of the vehicle hit a barrier at 40 miles per hour, but only one model – the 2016 Hyundai Tucson -- rated as good when the same test was performed on the front passenger side. While three models received acceptable ratings and two models received marginal ratings, the 2015 Toyota RAV4 was rated as poor. The IIHS suspected that the difference was partly due to a greater emphasis on the vehicle frame and structure for the driver's side, but there is no excuse for inferior passenger protection. Read also: How To Shop For A Car With Your Teen Driver? If you were a passenger in a vehicle involved in a collision and were seriously injured as a result, or if you lost someone you love in such an accident, you should contact an experienced personal injury lawyer who can examine the circumstances of your case and advise you of your rights. Personal injury attorneys work on a contingency fee basis, which means you don’t pay them unless there is a settlement or verdict in your favor. Passengers with serious injuries are entitled to appropriate and thorough medical care for their physical, emotional, and psychological injuries suffered as a result of the accident, as well as full compensation for their pain and suffering, mental anguish, property damage, and lost wages. It is also critical that you at least consult with an attorney before speaking with an insurance company investigator or adjuster. Their job is to spend as little money as possible while quickly settling a large number of claims, and they are well-trained in the fine art of getting you to make statements that can come back to haunt you later. Since you are bound by what you say, it is often wise to let an attorney speak for you.

UAE Insurance Authority Sets New Regulations for Insurance Broking

Who is an Insurance Broker?

The New Insurance Law Provisions