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UAE: Central Bank bans insurance provider from issuing new policies due to violations

It is the first company to be prohibited from issuing motor and health insurance

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Image used for illustrative purpose. Photo: File
by

Waheed Abbas

Published: Wed 2 Oct 2024, 10:18 AM

Last updated: Wed 2 Oct 2024, 10:46 AM

The Central Bank of the UAE (CBUAE) on Wednesday said it had prohibited a Takaful insurer from issuing or concluding new motor and health insurance contracts for violating the laws.

The ban includes renewals as well, according to a statement issued by the regulator on Wednesday.

“This action comes as a result of the insurance company's failure to meet the minimum capital requirement. The CBUAE has given the insurer a period of six months to remediate the solvency position and comply with its directions in this regard,” said the statement.

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The CBUAE aims to ensure that all insurers, their owners and staff abide by the UAE laws, regulations and standards adopted by the CBUAE to safeguard policyholders as well as the integrity of the insurance sector and the UAE financial system.

The regulator didn’t disclose the name of the takaful insurer. It was also the first company to be prohibited from issuing motor and health insurance for not meeting minimum capital requirements.

The decision to ban was taken pursuant to Article 33 of Federal Decree Law No. (48) of 2023 Regarding the Regulation of Insurance Activities (the Insurance Law).

“The insurer remains liable for all rights and obligations arising from insurance contracts concluded before the decision of the prohibition,” said the statement.

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Waheed Abbas

Published: Wed 2 Oct 2024, 10:18 AM

Last updated: Wed 2 Oct 2024, 10:46 AM

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