UAE Insurance Authority Sets New Regulations for Insurance Broking

by

29 December 2020

Legal

Insurance Broking

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 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

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

Personal Injury Lawyer

6 Important Questions to Ask a Personal Injury Lawyer

The worst has happened. You got injured on the job, or your spouse hurt you in a fight. Something happened to you while you were at the dentist, or you had a severe reaction to a latte. Regardless, health care is expensive. There's a chance that you're not able to cover the bill. You start wondering if there's some other way to pay for your medical expenses. You talk to your company or ask for compensation. But no one is willing to do anything. If this sounds like you or someone you love, it's time to consider legal action. You can contact a personal injury lawyer who will help you get what you deserve. But before you hire anyone, check out our six questions to ask a personal injury lawyer. Why Hire a Personal Injury Lawyer? Sometimes we get hurt, and it's because of our own stupidity. But there are times when the blame rests on another party. This can be an individual, a company, or even a doctor. When this happens, it's time to hire a personal injury lawyer. There are many different kinds of lawyers who can help you. Choosing the right one depends on the personal injury questions you have. Most personal injury lawyers can handle a car crash case. But what happens if there are many parties involved or if there is severe damage? You'll need a lawyer with more experience in your type of case. If a doctor injured you, then hire a lawyer with experience in medical malpractice. At least they need to know about medical procedures and misdiagnoses. If you got hurt by a piece of machinery, then look for a lawyer with a background in corporate and negligence law. Do some research into the nature of your case. That way you'll be able to find the right personal injury lawyer for your needs. What Information Do I Need Before I Talk to a Personal Injury Lawyer? Keep in mind that scheduling a consultation with a lawyer is not the same as hiring them. You're asking them in-depth questions about their background and career. You'd do the same for any contractor or real estate agent. But before you sit down with a lawyer, it will help you to have a few things prepared. First, you'll need to record the details of your case. Write down everything that's related to what happened. Describe the events in the order they happened, and be as detailed as possible. If you need help, think of the 4 W's. Who was involved? Where did the accident happen? When did it take place? What were you doing? In fact, what was everyone doing? Try to be as factual as possible. If you lie, it will come out in court. Then you'll be in trouble. Gather any evidence you can. This includes things like: Police reports, tickets, arrest information, and toxicology results Eye-witness reports Photographs and videos Bills, receipts, medical records, and any diagnoses Getting all this information in one folder will help you and the personal injury lawyer. 6 Questions to Ask a Personal Injury Lawyer Hiring a lawyer is as personal as hiring a doctor or a therapist. It's an expensive service, and you want to make sure you have the right lawyer for you. So check out our six questions to ask a personal injury lawyer before you hire them. 1. Have You Taken a Case Like Mine Before? This is one of the most important questions to ask an attorney before hiring them. You want to make sure your case is in good hands, so don't be afraid to ask about their experience. Your lawyer should have years of experience working with cases like yours. It's also important that they have experience winning cases, or making successful settlements. Ask them for a reference list of all their cases. They should also have endorsements from past clients. If your internal radar goes off, you can look up an attorney's disciplinary records online. Some states need a lawyer's bar number to do this. But other states like Georgia will list the lawyer's name. 2. What is Your Opinion of My Case? In other words, does this personal injury attorney think you'll win? This is one of the more dubious questions to ask a personal injury lawyer, but it's an essential one. Their answer will help you make your decision about whether to hire this attorney. You want them to give you an honest answer, of course. No decent lawyer wants to waste their time on a hopeless case, even if you are paying them. They should give you an objective opinion about whether you'll win your case based on the evidence you've given them. That said, ask this question with an open mind. It's easy for the victim of an accident to think they deserve compensation. If a personal injury lawyer is telling you it won't happen, there might be some merit in that. 3. Will My Case Go to Trial? Only 4%-5% of personal injury cases go to trial. That means there's a good chance your case will settle out of court. But no matter what the odds, a good personal injury lawyer will prepare to go to trial. In fact, it's a red flag if the lawyer starts talking about settling out of court from the get-go. Trials can be long and expensive for you. But if you have to go to court you want a lawyer who's experienced. Ask them about their record in court, and whether the case won by a judge or jury. Your lawyer should also be able to give you a timeline of how long a court proceeding takes. While each case is unique, an experienced lawyer knows how things go at the local courthouse. Regardless of whether you go to court, you need to talk with your lawyer about your level of involvement. Some people want to be at every meeting and deposition, but most lawyers won't allow it. It's often best for you to stay on the sidelines and trust your lawyer. 4. What are Your Fees? This is another important question to ask an attorney. If you can't afford this lawyer, then you'll need to look for someone else. A typical personal injury lawyer earns money based on contingency fees. That means you won't pay any fees unless you win money damages in the lawsuit. Once you do win the case, the personal injury lawyer will take a percentage of the money. This can range from 25% - 40% of anything you win from the lawsuit. While this is a great incentive for your lawyer to win your case, it might not be the only bill. There are other costs you should ask about, like case-related costs. These are also known as "out of pocket" fees. Ask your lawyer about these fees, and who will pay them in case you lose. Do not work with a personal injury lawyer who charges by the hour. These kinds of payment plans can get expensive in personal injury cases. 5. How Much is My Case Worth? An experienced personal injury lawyer should give you an estimate on how much your case is worth. They'll base this estimate on cases they've already won or worked on. Most personal injury lawyers won't give you a hard number to work with, but instead give you some kind of range. They need to explain how the different factors in your case will affect the bottom line. You can also ask them point-blank whether they'll make more for you than their competitors. After all, this isn't only about getting justice for you. It's also about who's going to pay your medical bills. Money is always hard to talk about, but you have to do it. You can discover more about discussing your case worth by doing some research. Make sure that you factor in the lawyer's contingency fee when you talk about how much you can make. 6. Who is Handling My Case? This question is vital if you're working with a large law firm. This is because that lawyer you spent all that time getting to know? He might not be the one representing you in court. This might help you because you'll have a larger team working on your case. Lawyers all specialize in different things. If your case is a complicated one, there's a good chance it'll get passed around the firm. But that's why it's important to know who is handling your case, and why. You want to know who you need to contact in each situation. You should also ask about the track record of every lawyer on your case. If your lawyer has less experience than the one you spoke to, ask about who is supervising them. Don't be afraid to ask questions or voice your concerns. Want More Tips About Hiring a Lawyer? We have lots of informative blog posts on our site about the legal field. If you want to know about questions to ask a personal injury lawyer or other legal tips, check out our blog. We also have articles on everything else you can imagine. From social media to entertainment to real estate, we have you covered. Take a look at our site for more great posts. Read More: Picking the Right Law Firm for You and Your Family. Divorce Lawyers In Houston Texas: A Short Guide On Saving Your Marriage.

READ MOREDetails
DUI Charges

7 Things You Should Know About DUI Charges: Can You Go to Prison as a Result?

In most cases, a first time DUI offense is considered as a misdemeanor, and you may go to jail for up to 6 months if you are guilty of the offense.  Here are some of the things you should know about DUI charges You may spend a few days in Jail as a First-time Offender: Criminal practice experience has shown that most first-time DUI offenders spend few days to some weeks in jail when found guilty. First DUI offense is considered a misdemeanor hence it carries lighter punishments, though sentencing can be increased to 6 months depending on the severity of injuries caused to victims. DUI May Involve Distinct Legal Cases: When you are involved or arrested for DUI, you may have two different legal issues. First of all, there may be a legal proceeding against you, over your driver’s license. Secondly, you may be charged with criminal DUI. There are different legal standards applicable to these two DUI cases,  but the result of one will not influence judgment on the other. You will need DUI attorneys to look into your peculiar case. A Third DUI Offence is considered a Felony: While the first DUI is considered a misdemeanor, a third offense is considered a felony. It is important to also note that DUIs may stay on your personal records forever. You May Get Probation Sentence  Instead of Jail Term: As a first-time DUI offender, you may have your prison term suspended and converted into probation, especially if no one was hurt in a car accident that you are responsible for. You may also make a plea bargain with the prosecutor, but you need to consult with an attorney before you sign such a plea bargain. Expungement of DUI Charges May be an Option for You: Expungement is a situation where your DUI records are removed from your personal records, this could be very helpful when you are looking for a job. In most cases, you can only file for expungement only after serving your DUI punishment. Some Conditions May Aggravate Your DUI penalties: Your DUI punishment may be increased if you were caught driving under extremely high alcohol influence, or if you have a minor, under 18 years of age in your car or if you were caught driving outside of the speed limit. You May Get a Bond Supervision After Multiple DUI: Since multiple DUI charges are considered a felony, you may be placed on multiple bond supervision for a very long time. Bond supervision means you may be placed under house arrest, random urinalysis and you may be asked to report to a probation officer. In conclusion, it is possible to get your DUI case thrown out if you can seek the help of a DUI attorney. In this case, the attorney can find strong proof that you were not responsible for the DUI situation, hence the injuries or death sustained from such accidents cannot be linked to you directly or indirectly. Read Also: How To Choose A Personal Injury Lawyer What Are The Penalties For DUI In Florida 6 Important Questions To Ask A Personal Injury Lawyer The Effects Of Drinking And Driving Under The Legal Age Of 21 Featured Image: fightduicharges.com

READ MOREDetails
Business Fails

How Business Owners Can Protect Themselves if Their Business Fails

15% of startups fail in the first year and only 50% succeed in the fifth year. Therefore, failure to take steps to protect yourself if your business goes bankrupt can have serious consequences.  These assets can be lost very quickly if you do not protect your hard-earned personal assets. Certain registry laws with simple steps can ensure you greater protection in the event of a claim or lawsuit.  If you have the right legal tools like a Business Attorney Atlanta GA in place before litigation begins, you will be in a much stronger position to weather the storm. This article will help you understand some important steps that you must take to protect yourself in case your business fails.  Protect Yourself When Business Fails Given below are some of the major steps that you must follow to protect yours;f when your business fails: 1. Speak And Act Mindfully The way a firm is seen is crucial. This is one of the reasons why business owners and their staff shouldn't make controversial claims or engage in dubious activities.  This involves making derogatory or disparaging statements, as well as avoiding doing business with dishonest individuals. Additionally, in critical situations, avoid speaking in the absence of a Business Attorney in Atlanta GA.  However, if they are discovered, the company's name could be linked to them. Therefore, you and your staff must work to reduce conflicts of interest and avert potential problems. In addition, such events may compromise your credibility as a businessperson and result in legal issues.  Even if you don't make choices that benefit your business, having a conflict of interest would still exist if you were a city council member and contributed to the passage of ordinances that benefited your company. 2. Hire A Business Attorney Consult a lawyer before beginning a business to get legal counsel. Before you do anything, you might require legal representation.  It is ideal to employ experienced business attorneys knowledgeable about the regional laws and customs of the area where the firm works and who, if required, has experience in a certain field.  Engaging a tax attorney if your company is dealing with legal issues with the Internal Revenue Service (IRS) or tax authorities could be prudent. You may discover an excellent attorney through a variety of sites. In addition, getting suggestions for experts from other business owners might be useful.  Alternatively, you might get in touch with the professional association your company belongs to, including your neighborhood chamber of commerce or sector association. Then, naturally, you may try making spam calls (and interviews) using the information in your phone directory. 3. Go For Insurance All businesses must have civil liability insurance, covering things like changing jobs and consumer collapse.  The purchase of errors and omissions insurance for allegations or contracts or contractual errors from customers or consumers must be considered. Again, you can consult professionals for advice on this matter.  You can also add liability protection to your contract in addition to purchasing insurance. However, this agreement shall not be accountable for unfinished work.  A Business Attorney in Atlanta GA may not be necessary early on in your business if you speak with one now about the clauses and legal terminology that should go into your employment contract. How To Hire A Business Attorney To Protect Yourself? Hiring a good lawyer is essential to a successful business. A good corporate lawyer can provide critical support in almost every aspect of your business.  In most small companies, the sheriff sends a lawyer in front of the door. This was very late after receiving maintenance and complaints. The larger the law firm, the higher the overhead costs and the higher the hourly rate.  Larger firms have more influence in the local, regional, and (perhaps) national legal community. Partnering with a large and reputable law firm can have intangible benefits. They will gladly refer you to a funding source or use your name as a reference.  You need a lawyer to help you decide if a limited liability company is the best way to organize your business. In addition, your attorney needs to know how to register your business for federal and state tax identification numbers.  Note: Don't be afraid to ask direct questions about your lawyer's experience. Your corporate lawyer should be like a "doctor". Beware of lawyers representing multiple competitors. Additionals: Debunking 7 Notorious Bankruptcy MythsWhat Is Chapter 7 On Bankruptcy Laws: A Beginner’s GuideWhat Is The Difference Between Chapter 7 & Chapter 11 Bankruptcy

READ MOREDetails