The Council of Ministers in UAE grants 1 year for insurers to regularize
Wednesday, 08 12 2015, Category: Insurance and Reinsurance, Country: U.A.E
The Cabinet issued a resolution granting the insurance companies operating in the UAE in the combined business of insurance of persons and fund accumulation operations along with property and liability insurance a period of one year starting from 28 August 2015 to regularize their positions in accordance with the provisions of Article No. 25 of the Federal Law No. (6) of 2007 concerning the Establishment of the Insurance Authority and Regulation of Insurance Business.
The provisions of Article 25 of the Federal Law No. (6) of 2007 concerning the Establishment of the Insurance Authority and Regulation of Insurance Business stipulate that it is not permissible to combine insurance of persons and fund accumulation operations and property and liability insurance operations.
H.E. Engineer Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of the Insurance Authority said in a press statement on this occasion that the decision to grant the insurance companies that combine insurance of persons and fund accumulation operations and property and liability insurance operations an additional period of one year to regularize their positions in accordance with the provisions of the law establishing the Insurance Authority and regulating insurance operations came as part of the UAE leadership's approach to support the national companies and improve their performance in order to serve the economic development in the UAE.
He added that the decision stems from the government's endeavor to provide a greater opportunity for the companies to regularize their positions according to the prescribed criteria in order to strengthen the competitive environment in the UAE markets and facilitate the application of legal procedures that serve the economic development in the UAE and contribute to the development of the insurance sector’s performance to more advanced levels.
The Minister reiterated the government's keenness to enhance the performance of the insurance sector and development of its business in line with the qualitative developments experienced in all sectors of the national economy. He highlighted the importance of the role played by the insurance sector in the economic and financial system in the UAE and in the development of the society and the provision of economic protection for individuals at all levels and activities.
Source: Insurance Authority - UAE