Measures taken to protect the Insurance sector in the UAE: Resolutions of the Insurance Authority further to the coronavirus pandemic

August 13, 2020

In the backdrop of a worldwide health crisis brought about by the novel coronavirus (COVID-19), the Insurance Authority in the UAE took a number of measures to limit the adverse implications of the virus on the insurance sector and to ensure continuation of insurance businesses across the UAE. On 8th March 2020, the Authority passed Circular No. (3) of 2020, which relates to precautionary measures and preventive procedures for the protection of public health and safety; its intent was to also curb the spread of the novel coronavirus (COVID-19): By virtue of this circular, the Insurance Authority requested insurance companies and professionals associated with the insurance sector, who are operating in the UAE, to take precautionary and preventive measures as necessary for the protection of public health at workplaces. This direction relates to the technical and operational level of businesses. The Circular further directed employees and clients to implement all preventive procedures issued by the competent authorities of the UAE, which included: quarantine for employees who have returned from overseas travel, in particular for those who were returning back to the UAE from the countries that were mostly affected by the virus, and further recommended opportunities to work from home for any employee manifesting symptoms similar to the symptoms of the Covid-19 virus. They also emphasized the necessity to follow all means of hygiene and the ongoing sterilization of all company facilities. On 30th March 2020, the Board of Directors of the Insurance Authority passed several resolutions, which provided: Resolution No. (13) of 2020, which amended several provisions of Resolution No. (9) of 2011 of the Board of Directors of the Insurance Authority and directed on the instructions for the licensing of health insurance claims of management companies and further updated the regulation of insurance businesses whereby, “Health Insurance & Claims companies shall provide the Authority with an annual report that contains details of all the business of the company during that year, and the closing financial statements of the financial year, duly audited, having enclosed therewith the report of the external auditor, within (4) months from the ending date of the financial year.” In addition, the Authority added a third clause to the said Article (13) requiring  Health Insurance & Claims companies to provide the Authority with a quarterly report on the company’s business and the accounts related thereto. This was to be signed by the chairman of the board of directors, the general manager, or the executive director, within a duration not exceeding (45) days from the end of the quarterly period. 2. Resolution No. (14) of 2020, amended provisions of Resolution No. (15) of 2013 of the Board of Directors of the Insurance Authority. This concerned the system of insurance brokerage. Under Article 1, the Authority amended Article (13) of its said Resolution No. (15) of 2013, with the addition of a sixth clause which allowed for an insurance broker to submit an application to the Authority for the reduction of the amount of the letter of guarantee issued by a banks operating in the UAE by an amount of one (1) Million Dirhams from the amount […]

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