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:

Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

View all posts

A Quick Guide to the Legal Steps of Buying a House

Finding your ideal home is a fantastic feeling and then finding out it is within your budget feels like a dream come true. However, learning about the amount of time and effort it takes to complete the sale can be daunting. Here is a quick guide to all the legalities of buying a house, so you are in the best possible position. Find the Best Solicitor for You Your solicitor will be your guide throughout this whole process. They will help you exchange contracts and complete all the paperwork you need to fill out. With a solicitor comes many overhead costs. In addition to their time fees, you will need to pay for any potential searches and other expenses. Therefore, it is necessary to find a solicitor who is within your budget. This does not necessarily mean you should always go for the cheapest option as there may be a great solicitor who can handle everything for you for a slightly higher cost than their competitors. Begin the Conveyancing Process Conveyancing is all the legal processes that take place from the exchange of contracts to you getting the keys for your new property. It is the bulk of the work which your solicitor will do, and so you need to know how much it is going to cost in advance. Get an instant conveyancing quote here from Tayntons Solicitors, a practice of qualified and experienced conveyancers. Firstly, your solicitor will examine the draft contract and supporting documents sent by the seller’s team. They will be able to talk you through everything they have received and will advise you on any place where you wish to raise an issue. They will also be your go-between for you and the local council. There will be many different forms that will need to be filled out, such as making sure you are on the Land Registry, and it will be essential that nothing is forgotten. Finish Up When everything is ready, the solicitor will oversee the transfer of funds from you to the seller. They will then make all the necessary arrangements for the remaining fees which will need to be paid before you finally get the keys to your new home. There will be tax returns to fill out, and conversations with your mortgage lender if you are using one. These are all incredibly important parts of the buying process which are as crucial as the exchange of contracts. Buying a property does not end with putting an offer into an estate agent. It is a very long and potentially difficult legal process, and you need to make sure you have the right person beside you helping you out. Searching for a conveyancer who is accredited by the Law Society will assure you that you will be working alongside a professional who knows the ins and outs of the business. With their help, your dream house will soon be yours forever. Read Also: Choosing The Right Conveyancing Solicitors For You How A Solicitor Can Help You To Set Up A Business

Navigating The Enduring Legal Challenges Of Camp Lejeune’s Water Crisis

Camp Lejeune, a sprawling military base nestled in Jacksonville, North Carolina, carries a legacy tarnished by a prolonged water contamination crisis. Established in 1942, this bastion of military command housed Marines and their families. According to TIME Magazine, as many as 1 million people on the base unwittingly faced toxic chemical exposure between 1953 and 1987. The gravity of the situation came to light in 1982 when the Marine Corps discovered the presence of harmful compounds in the water supply. In this guide, we will dive into the enduring legal complexities of Camp Lejeune's water crisis. We will examine its origin, health ramifications, government recognition, ongoing lawsuits, and settlement options. The Origin of the Crisis Camp Lejeune's water crisis unfolded through a combination of on-base incidents and off-base negligence. Trichloroethylene, perchloroethylene, benzene, and vinyl chloride seeped into the water supply, laying the foundation for severe health implications. The genesis of Camp Lejeune's water crisis can be traced back to a complex interplay of on-base incidents and off-base negligence. The contamination, however, was not merely an isolated incident but a result of a systemic failure in handling hazardous materials. Understanding this systemic failure is crucial for assessing the liability of various entities involved and ensuring a comprehensive legal response. Addressing the systemic issues requires collaborative efforts from both military and civilian authorities. Health Ramifications Linked to Contamination Scientific investigations by the ATSDR have established a direct correlation between Camp Lejeune's water and an array of health issues. As noted by the CDC, different diseases caused by exposure to Camp Lejeune’s contaminated water include multiple types of cancers and developmental disorders. It can also cause immune system disorders and neural tube defects. Beyond the physical health consequences linked to Camp Lejeune's water contamination, there exists a significant toll on mental health. Individuals exposed to these toxic chemicals not only grapple with the physical manifestations of diseases but also face profound psychological challenges. The mental health aspect becomes an essential consideration in legal proceedings, highlighting the holistic impact of the crisis. Legal strategies must encompass mental health advocacy, recognizing the interconnected nature of physical and psychological well-being. Government Recognition and Compensation Mechanisms The recent enactment of the Honoring Our PACT Act of 2022 has paved the way for compensation. As per the VA, veterans and individuals exposed between 1953 and 1987 who grapple with health problems connected to contaminated water can seek redress. The Veterans Affairs (VA) also extends benefits to ensure comprehensive coverage. While the Honoring Our PACT Act of 2022 signifies a step towards justice, its implementation raises questions about the speed and efficiency of compensation. Delays in the government's response further aggravate the suffering of victims. Legal advocacy is essential not only for securing compensation but also for streamlining the bureaucratic processes to ensure timely relief. Timely relief is not just a matter of justice but a crucial factor in addressing the urgent medical needs of affected individuals. The Current Lawsuit of Camp Lejeune Lawsuits Over a thousand lawsuits are currently pending in the Eastern District of North Carolina, showcasing the magnitude of the crisis. A July 2023 Camp Lejeune lawsuit update reported the appointment of the lead counsel by the judges of North Carolina. Developments like these are considered significant as they signify a critical step towards organizing and managing the large volume of cases. The current landscape of Camp Lejeune lawsuits illustrates a collective pursuit of justice. However, the sheer volume of pending cases emphasizes the need for an expedited legal process. According to TorHoerman Law, it is crucial to enlist the help of lawyers who are experts in handling cases like these. Such professionals can help navigate through complex cases. They can also help advocate for the prioritization of cases based on the severity of health conditions. This can ensure a swift resolution for affected individuals. A concerted effort is necessary to streamline legal proceedings, ensuring that justice is not delayed for those already enduring health challenges. The Elective Option Settlement Program The government's response comes in the form of the Elective Option settlement program, streamlining compensation based on specific illnesses and exposure duration. While the Elective Option settlement program offers a semblance of resolution, the eligibility criteria introduce a layer of complexity. Legal professionals must scrutinize these criteria to ensure fair representation of claimants. Additionally, it's crucial to explore avenues for further amendments to the program, addressing potential gaps in compensation for unique cases. Striking a balance between standardized criteria and individual case considerations is crucial for a fair and inclusive settlement program. Challenges in Establishing Qualifying Injuries Proving qualifying injuries for compensation involves meeting stringent criteria, including timelines for diagnosis and duration of exposure. Obtaining relevant medical records emerges as a significant hurdle, especially considering the temporal distance of many cases. The challenges in proving qualifying injuries extend beyond the accessibility of medical records. Legal teams must delve into the nuances of each case, considering factors such as genetic predispositions and pre-existing conditions. Establishing a comprehensive understanding of the individual health history becomes crucial in presenting a compelling case for compensation. Recognizing the unique circumstances of each claimant is necessary, as it allows for a more specific and accurate representation in legal proceedings. Evolution of Camp Lejeune Litigation As Camp Lejeune lawsuits progress, the legal landscape undergoes dynamic shifts. Potential precedent-setting cases and continuous developments in compensation programs create an uncertain yet hopeful path for those seeking justice. Legal professionals also play a critical role in shaping the future trajectory. Advocacy for continued research into the long-term health effects, collaboration with medical experts, and proactive engagement with policymakers are essential steps. This forward-looking approach ensures that legal actions not only address past grievances but also contribute to preventing future environmental crises on military bases. Proactive collaboration with scientific and policy communities is vital for creating a lasting impact beyond individual legal cases. In summary, the legal challenges of Camp Lejeune's water crisis demand swift and fair resolution. Recent legislation and settlement programs offer progress, but hurdles persist in ensuring timely justice for affected individuals. Legal professionals play a crucial role in navigating complexities and advocating for fair representation. Looking forward, proactive collaboration with scientific and policy communities is vital to prevent future environmental crises. Camp Lejeune's legal journey serves as a blueprint for addressing systemic failures and safeguarding military bases and communities. Read Also: Diving Into The Shiny World Of Precious Metal Investments Why do modern people prefer Coliving to other housing options? Is The World Shifting Fast Enough To Renewable Sources Of Energy?

Steps To Follow After A Car Accident

Accidents are common these days, and no one is safe on the road. There is nothing to panic about but to try to be safe as much as possible. We are living in a busy world of technology where we have a general tendency to keep up with the pace and do things faster than ever. This kind of tendency is increasing our life risks on the road. For instance, you have to complete five tasks today while you used to do four tasks a day. Now, what will be the consequences? You will try to manage things faster than in earlier days, and here comes risk on the road. Roads are risky, and if you try to hurry, you will make a mistake that might cause severe injury to others who are also traveling. Steps To Take After You Face A Car Accident: It's not just about you when you drive on the road but also about others who are present on the road at that time. People do not understand common things, and accidents happen, and injury occurs. In many cases, you might face a car injury that leads to serious damage to you and your car, and you will need compensation. The best thing you can do here is to hire a Car Accident Lawyer Salt Lake City to assign in your case. 1. Stay Calm And Call The Police No matter what condition you are in, being calm is the only way to proceed with things better. If you panic, the whole thing will go wrong for you, and things might go out of control. So, it's better to stay calm and composed even if you are seriously injured. Try to call for help or seek the attention of others in the accident zone. The next thing you can do is to call the police as early as possible and make sure that the driver, who is responsible for your injury, does not flee. 2. Check For Injuries When you have faced a car accident, the wise option will be to seek medical assistance. Try to check for injuries and see if your clothes are blooded. No matter how trivial the injury is, call for health services. Allow a primary check-up on your present condition because sometimes people feel okay at the current moment in a car accident, and after some time, they start feeling unusual, and that happens due to internal injuries. So, a medical checkup is necessary. 3. Gather Information Now your next step will be to handle the outer world in the accident zone. Look out for the things on your own so that you can use those as evidence. Try to take photos and videos and also ask local people if they have captured any video or photo of the accident at that time. This is not to memorize the moment, of course, but to handle the situation better when interacting with the police. These will work as your evidence and also talk to the other driver and take all their personal information. You May Also Check: How Are Auto Accident Compensations Calculated? – 5 Things To Note 4. Don't Admit Guilt A car accident can happen due to various situations. The fault can be anyone's starting from you to the traffic surgent. So, even if it’s your fault, try not to speak to anyone. If you confess randomly to your faults, it might be taken as evidence, and that can also be manipulated to show you as fully responsible for the accident. When it's an accident, it's a serious issue that cannot be handled randomly or with your certain instincts. 5. Contact A Car Accident Lawyer The most important step in your case will be to contact a car accident attorney. It's not just about getting out of the situation as early as possible but also getting compensation for what you have faced so far. A Car Accident Lawyer Of Salt Lake City with adequate experience can be your best friend in an accident case, and when it's the law, you should provide the responsibility to the lawyer. The field is not yours to be an expert but let your lawyer handle the whole situation for you. Be Prepared Be prepared to fight in the courtroom and hire an attorney to help you fight the onsets of desperation. You are not alone here, and your lawyer will deal with the case in any situation. The negotiation process will also be handled by your lawyer, and thus it's time for you to stay calm and make correct decisions by following the above-mentioned steps. Read Also: Steps to Filing a Car Accident Claim in WaukeganLegal Ways to Determining Fault for an Arizona Truck AccidentFiling A Personal Injury Lawsuit In South Carolina: Here Are 7 Things You Should Know

UAE Insurance Authority Sets New Regulations for Insurance Broking

Who is an Insurance Broker?

The New Insurance Law Provisions