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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Can You File A Claim In A Single Car Accident?

Car accidents can be complex and stressful situations, but what happens when you're involved in a single-car accident? Can you file a claim in such cases? The short answer is yes, you can often file a claim in a single-car accident, but the process and outcome will depend on various factors, including the circumstances of the accident, the type of insurance you have, and the applicable laws in your jurisdiction. Here, we want to explore the ins and outs of filing a claim in a single-car accident. Determining Liability The first step in filing a claim for a single-car accident is to determine liability. Liability refers to who is legally responsible for the accident. In a typical two-car accident, liability is usually assigned to one of the drivers involved. In a single-car accident, you are essentially claiming that your own actions or external factors caused the accident. Liability can be established in various ways: Negligence: If you were negligent in your actions, such as speeding, running a red light, or texting while driving, your own negligence may be the cause of the accident. Mechanical Failure: If a mechanical failure in your vehicle, such as brake failure, caused the accident, you may have a claim against the vehicle manufacturer or a maintenance provider in the form of a product liability claim. Road Conditions: Poor road conditions, such as potholes, poorly marked construction zones, or lack of proper signage, can lead to accidents, and you may have a claim against the responsible government agency. Wildlife or Weather: If an animal darted in front of your car, or adverse weather conditions caused the accident, you may have a claim if it can be shown that you reacted reasonably given the circumstances. Insurance Coverage The ability to file a claim for a single-car accident largely depends on the type of insurance coverage you have. There are several types of insurance coverage that may come into play: Liability Insurance: This covers damages and injuries you cause to others. If you were at fault in a single-car accident, your liability insurance may cover damages to others involved or their property. Comprehensive Insurance: This coverage typically includes damages to your vehicle resulting from non-collision events, such as hitting an animal or damage from natural disasters. If your single-car accident was caused by an event covered by your comprehensive insurance, you may be able to file a claim. Uninsured/Underinsured Motorist Coverage: This coverage can apply to a single-car accident if the responsible party is uninsured or underinsured or if you are the victim of a hit-and-run. Gathering Evidence To strengthen your claim in a single-car accident, it's crucial to gather evidence. This may include: Witness Statements: If there were any witnesses to the accident, obtain their contact information and statements about what they observed. Police Report: If the police were called to the scene, a police report will be generated. This report can be valuable in documenting the accident and its cause. Photos and Videos: Take pictures and videos of the accident spot, including your vehicle’s damage, the road situation, and any relatable traffic signals or road signs. Maintenance Records: If mechanical failure is a potential cause of the accident, provide maintenance records to show that your vehicle was in good working order. Medical Records: If you sustained injuries, keep records of medical treatment and expenses related to the accident. Filing A Claim Once you’ve determined liability and gathered the necessary evidence, it’s time to file a claim with your insurance agency. Be prepared to provide detailed information about the accident, including the date, time, location, and any relevant circumstances. Your insurance company will investigate the claim and, depending on the circumstances, may approve it. Possible Challenges As mentioned by the Chicago car accident lawyers at Smith LaCien LLP, a claim for a single-car accident can be more challenging than in two-car accidents because there's no other driver's insurance to turn to. You may encounter several challenges: Policy Limitations: Your policy may have limitations on the types of single-car accidents it covers. Read your policy carefully to understand the extent of your coverage. Deductibles: You may have to pay a deductible before your insurance coverage kicks in. Make sure you understand your policy's deductible requirements. Coverage Denial: Insurance companies may deny a claim if they believe the accident was the result of intentional or reckless behavior or if the event is not covered by your policy. Disputes: If your claim is denied or you're unhappy with the insurance company's offer, you may need to engage in negotiations or, in some cases, consider legal action. Legal Considerations If your single-car accident claim is denied, or if you believe you're not being treated fairly by your insurance company, you may need to seek legal counsel. An attorney experienced in personal injury and insurance claims can provide guidance on how to proceed and help you understand your legal rights. Filing a claim in a single-car accident is possible, but the outcome depends on various factors, including liability, insurance coverage, and the circumstances of the accident. If you find yourself in such a situation, it's essential to act promptly, gather evidence, and understand the terms of your insurance policy. Additionally, consider consulting with legal experts to ensure that your rights are protected and that you receive fair compensation for any damages or injuries resulting from the accident. Read Also: Why It’s So Important To Hire A Lawyer After A Fatal Car Accident Car Accidents From Hitting Florida’s Wildlife Car Accidents in California- What Does the Law Say?

From Collision To Compensation: Common Car Accident Types Where A Lawyer Is Essential

Car accidents are an unfortunate reality of modern transportation, with data revealing startling statistics that highlight the prevalence of these incidents on our roads. In the United States, for instance, there are millions of car accidents each year, leading to a high number of injuries and fatalities. These numbers emphasize the importance of safety measures and preparedness should one find themselves involved in an auto accident. Amid the chaos following an accident, victims often face not only physical and emotional trauma but also complex legal and financial challenges. This is where the expertise of a car accident lawyer becomes indispensable. Securing fair compensation after an accident is not merely about filing insurance claims; it's about grasping the complexities of liability, negotiating with insurance companies, and, if necessary, pursuing legal action to ensure justice is served. A seasoned lawyer can steer through the maze of legal procedures to protect your rights effectively. As we proceed, we'll explore the five common types of car accidents where the counsel and advocacy of a knowledgeable lawyer are not just an advantage but a necessity for those seeking rightful recompense. Through their intervention, victims can hope to recover losses and focus on healing without the added burden of legal battles. #1 Rear-End Collisions: The Complexity Behind A Common Incident Despite their frequency on the road, rear-end collisions are anything but straightforward. They typically occur when the front end of one vehicle crashes into the back of another. This can happen for a variety of reasons ranging from sudden stops, and distracted driving to tailgating, or even slippery road conditions. The resulting injuries can range from minor whiplash to long-term spinal damage, depending on the severity of the impact. Establishing fault in these accidents often involves understanding the subtleties of traffic laws and driver duty of care, with most presumptions placing the blame on the trailing driver for not maintaining a proper distance or not paying attention. However, every case has unique factors that can complicate this assumption, such as if the lead driver performed an unpredictable maneuver or if there were malfunctions with one of the vehicles' brake lights. When seeking compensation, legal acumen becomes vital to managing the process of determining fault, especially when insurance companies are involved and injuries are serious enough to warrant a substantial claim. #2 T-Bone Accidents at Intersections: Sorting Through Liability T-bone accidents, often occurring at intersections, are severe collisions where the front of one vehicle crashes directly into the side of another, resembling the shape of a “T”. These crashes can lead to significant injuries and vehicle damage, making them among the most dangerous types of road incidents. Determining who is at fault in a T-bone accident can be complex, as it typically involves a scenario where one driver has failed to yield the right of way, possibly due to running a red light or stop sign or being distracted. Proving liability requires a close investigation and a clear understanding of traffic laws. In such cases, a lawyer becomes a key ally, possessing the expertise to sort out these challenges. They play a vital role in collecting evidence such as traffic camera footage, witness statements, and vehicle damage reports. What’s more, they bring experience in negotiating with insurance companies to ensure victims receive fair compensation for their losses. #3 Multi-Vehicle Pile-Ups: Untangling The Web Of Responsibility When several vehicles are involved in an accident, the result is not just physical wreckage but also a puzzle of accountability. Multi-vehicle pile-ups embody chaos on the roads, with each collision triggering another until a snarl of metal and motion brings travelers to a devastating halt. These massive accidents can make it incredibly challenging to discern the actions leading up to the commotion and to pinpoint the responsibilities of each driver involved. With numerous parties, each with their own perspective and different auto insurance policies, the situation often becomes remarkably complex. Given the multitude of potentially liable parties and the interrelated sequence of events that led to the accident, it is nearly impossible for an individual to manage the aftermath alone. This is why securing a legal expert is not just advisable but necessary. A skilled attorney can dissect the detailed aspects of the multi-car pile-up, coordinating effectively with several insurance companies to ensure that the burden of responsibility is assigned accurately and that justice is served in the knotted aftermath of such harrowing events. Read Also: Car Accidents in California- What Does the Law Say? #4 Hit-And-Run Incidents: Tracking Down The Culprit Hit-and-run accidents add a profound layer of complexity and distress to already traumatic situations. When a driver flees the scene of an accident, they leave behind not only physical damage and potential injuries but also a web of unanswered questions. To disentangle this web, a detailed investigative process springs into action. Authorities begin by gathering all available clues from the scene - think skid marks, vehicle parts, and eyewitness accounts. Law enforcement may also call upon surveillance footage or traffic camera data to piece together the fleeting moments before and after the incident. Amidst the investigation, those affected by hit-and-runs can find solace in legal support. An experienced lawyer becomes invaluable in such cases, providing guidance and advocacy. These professionals are adept at understanding the subtleties of the law and can be key in securing due compensation. They work tirelessly to uncover the identity of the hit-and-run driver and utilize uninsured motorist policies to ensure that victims receive coverage for their losses. The path to justice can be winding and uncertain, but with a combination of thorough investigation and skilled legal representation, the chances of holding the culprit accountable increase greatly. #5 Drunk Driving Crashes: Advocating For Justice And Compensation The traumatic impact of collisions caused by inebriated drivers cannot be understated. These accidents come with severe repercussions, not just physically and emotionally, but also in terms of the legal consequences that accompany them. Drunk driving, universally condemned and vigorously prosecuted, often results in punitive damages—a kind of legal retribution that goes beyond compensatory measures, aiming to punish the offender and deter future misconduct. Nevertheless, deconstructing the legal challenges surrounding such sensitive cases calls for a strategic approach that an experienced attorney can provide. Skilled lawyers play an important role in ensuring that justice is served by effectively advocating on behalf of victims and their families. They tirelessly work to secure fair compensation, addressing the profound losses incurred while maneuvering through the legal framework. In these trying times, an attorney doesn't just serve as legal representation, but also as a steadfast pillar of support in the pursuit of justice and rightful compensation for those affected by the negligent acts of others. In the aftermath of a car accident, the importance of having legal expertise cannot be overemphasized. Dealing with the complications that arise can be overwhelming, particularly when it comes to managing insurance claims, potential litigation, and securing fair compensation for injuries and damages. Individuals need to consider the extensive benefits that consulting a car accident lawyer can bring to their case. These professionals offer more than just legal advice; they provide a shield against the tactics of insurance companies and the legal mazes that can baffle anyone without a law degree. A car accident lawyer works to ensure that your best interests are represented, aiming for optimal outcomes that might not be achievable without their specialized knowledge and experience. Additional: Steps To Follow After A Car Accident Steps to Filing a Car Accident Claim in Waukegan Philadelphia Residents: How A Car Accident Lawyer Can Help You?

Car Accident Liability

Countless individuals like you daily navigate the bustling streets and highways in their cars. It's a routine part of people's lives, whether commuting to work, visiting loved ones, or running errands. However, amid the convenience and familiarity of the daily drives lies a substantial responsibility—car accident liability. Understanding this intricate topic is essential for all road users. In the unfortunate event of a collision, determining liability can be challenging, often necessitating legal expertise, like a car accident lawyer in Winston Salem. This article aims to shed light on car accident liability, exploring its complexities and the vital role professionals like Winston-Salem car accident lawyers play in resolving these matters. The Basics Of Car Accident Liability At its core, car accident liability determines responsibility when a traffic accident occurs. This responsibility isn’t always immediately clear-cut and often involves multiple parties. For instance, envision a scenario where two vehicles collide at an intersection, and both drivers claim they had the green light. In such cases, authorities must conduct thorough investigations, analyze evidence, and potentially rely on eyewitness accounts to ascertain which party should be held accountable for the accident. If you find yourself in a legal situation related to a car accident, seeking advice from a specialized professional, such as a *DUI lawyer in Phoenix*, can offer valuable insights tailored to your case. Types Of Car Accident Liability Car accident liability can be categorized into different types, each governed by its own set of regulations: No-Fault Liability: In select states, the "no-fault" system prevails. This means that irrespective of who caused the accident, each driver's insurance covers their medical expenses and vehicle damage. The rationale behind this system is to expedite claims processing and minimize the number of lawsuits stemming from minor accidents. Comparative Fault Liability: In states that adhere to comparative fault rules, liability is assigned based on the percentage of fault attributable to each involved driver. For instance, if one driver is determined to be 80% responsible for an accident while the other bears 20% of the blame, compensation is allocated accordingly, reflecting these proportions. Contributory Negligence Liability: Some states still follow the stringent doctrine of contributory negligence. Here, even a minor degree of fault on your part can result in being barred from seeking any compensation. It's an all-or-nothing approach, which places a significant burden on drivers. Proving Liability Establishing liability in a car accident case necessitates collecting and presenting compelling evidence. Various types of evidence can be employed: Witness Statements: Eyewitness accounts are often invaluable in reconstructing the accident's sequence of events. Their statements can provide critical insights into who was at fault. Police Reports: Police officers who respond to accident scenes generate official reports documenting observations and assessments. These reports carry substantial weight in determining liability. Photographs and Videos: In the age of smartphones, the practice of capturing accident scenes on camera has become commonplace. Visual evidence like photographs and videos can be highly persuasive when establishing liability, providing a clear and objective record of the accident's aftermath. Insurance And Car Accident Liability Insurance plays a pivotal role in the realm of car accident liability. While insurance offers protection for drivers, it can also pose challenges: On one hand, insurance is a safety net that guards against financial devastation in the wake of an accident. It ensures that medical bills are covered, and vehicle repairs are financed. On the other hand, insurance companies often aim to minimize their payouts. This may lead to disputes and legal proceedings between the involved parties as they navigate the intricacies of liability determination. Legal Consequences Of Car Accident Liability Once liability is established, legal consequences follow. These consequences can manifest in both civil and criminal forms, contingent upon the accident's circumstances: Civil Consequences: In civil cases, the injured party can file a lawsuit seeking compensation for various losses. This compensation includes medical expenses, property damage, pain, and suffering. When the court decides on liability, it may order the at-fault party to provide financial restitution. Criminal Consequences: In extreme negligence or recklessness, the at-fault driver may face criminal charges. If you're facing legal charges, it's essential to understand the severity of the situation. These charges may range anywhere from misdemeanors to felonies and carry heavy penalties, such as fines, license suspension, or even imprisonment. Taking the necessary steps to protect your rights and defend yourself against these charges is crucial. Criminal proceedings are initiated and prosecuted by the state. Mitigating Car Accident Liability While accidents can happen to even the most cautious drivers, several strategies can help reduce liability: Safe Driving Practices: Adhering to traffic laws, minimizing distractions, and maintaining vigilance while driving are effective ways to reduce the risk of accidents. Responsible driving habits can significantly decrease the likelihood of being held liable in the event of a collision. Maintain Insurance: Ensuring adequate insurance coverage is fundamental in mitigating liability. Good coverage can provide financial protection in an accident, helping shield personal assets from the economic consequences of a collision. Seek Legal Advice: When liability is ambiguous or disputed, consulting with an attorney specializing in personal injury law is wise. Legal professionals can guide the complex process of determining liability and pursuing compensation. Conclusion In car accidents, the repercussions of liability stretch far beyond the accident scene. They can impact finances, livelihoods, and personal well-being. This is where professionals like car accident lawyers in Winston-Salem become invaluable. They navigate the intricate web of car accident liability. Thereby ensuring justice is served and rightful compensation is obtained. So, as you hit the roadways in your vehicle, remember the profound importance of car accident liability. It's not just legal jargon but a fundamental aspect of responsible driving. In times of uncertainty, when accidents occur, you can rely on experts like Winston Salem car accident lawyers to guide you through the intricate process, providing you with the support and expertise needed to protect your rights and interests. Stay safe on the road, and always drive responsibly, for life's journey is precious, and understanding liability ensures that we all arrive safely at our destinations.

UAE Insurance Authority Sets New Regulations for Insurance Broking

Who is an Insurance Broker?

The New Insurance Law Provisions