Unified motor insurance policy in UAE before year end 2015
Friday, 10 16 2015, Category: Insurance and Reinsurance, Country: U.A.E
The Insurance Authority said that the draft “unified motor insurance policy” in both its comprehensive and third party parts includes restrictions to limit the underpricing policies practiced by some companies, indicating that the model policy will be finalized before the year-end.
And the Insurance Authority confirmed that there are discussions with the central bank in order to control the issues related to the insurance of loans and to make sure companies comply with these rules when the borrower is afflicted expecting that the gross premiums written by the insurance sector to grow by 12% in the current year compared with a 11% growth in year 2014.
In detail, His Excellency Mr. Ibrahim Al Zaabi, general manager of the Insurance Authority said that the “draft unified motor insurance policy in both its comprehensive and third party components will include restrictions to limit the underpricing policies practiced by some companies, and will include the appointment of an actuary in order to set the prices of policies. Therefore, insurers will not be allowed to sell policies below the prices set by the actuary” indicating that “all opinions of insurers and the public are being gathered in order to finalize the policy before year end”.