negotiating consent rights in its shareholders’ agreement (i.e. Arbitration clause must be printed in form of a separate agreement by way of accompanying annexure. A company may not practice insurance brokerage in the UAE without obtaining a license from the Insurance Authority. Article 64 of the UAE Commercial Companies Law defines a Public Joint Stock Company (PJSC) as "Any company whose capital is divided into equal value negotiable shares shall be considered a public joint stock company and a partner therein shall only be liable to the extent of his share in the capital" Article 26 of the Law imposes restrictions on insurance companies. Most of the definitions are already covered under the Law except that it provides for a new definition of Minister to mean Ministry of Economy. The United Arab Emirates (UAE) Insurance Authority has published Electronic Insurance Regulations to govern the online activity of insurance companies, brokers and related insurance professionals licensed to practise onshore in the UAE. The Insurance authority has also issued a board resolution (Board Resolution Number 1 of 2009 – “Directives on Procedures for Anti-Money Laundering (AML) and Combating Terrorism Financing through Insurance Activities”). The resolution also sets out that minimum seventy-five percent of the share capital must be owned by a UAE citizen or; a GCC citizen. The UAE Commercial Companies Law and relevant insurance laws and regulations do not apply to entities established in the DIFC.  Instead, the DIFC has a separate set of laws and regulations which allow full foreign ownership of companies within the DIFC.  Insurance businesses carried out in the DIFC are also regulated by the Dubai Financial Services Authority rather than the UAE Insurance Authority. (25) of 2020, The Insurance Authority has now merged into the Central Bank of the UAE, which commenced its operational procedures … The Department of Health Insurance at Sharjah Health Authority oversees health insurance coverage for UAE nationals in the emirate of Sharjah. Part of the reason for this underpenetration is historical.  However, in the UAE, it also has to do with government policy aimed at fostering the local insurance industry and at promoting national investment and the development of UAE’s capital markets. UAE Insurance Law deals with the formation and enforcement of insurance policies and claims. Policy renewal notice should also clearly set out additional information or documentation required from the client. Acknowledge grants, donations, and aids; and to settle objections received from insurance companies, and executing other duties of Insurance Authority's affairs (Article 12 (7) to Article 12 (9). - The Health Insurance Law of Dubai No 11 of 2013 requires that all Residents must have a level of health insurance that meets or exceeds minimum benefits stipulated by Dubai Health Authority (DHA). 3 of 2010 (the 2010 IA Directive)). ‘Insurance: in life and in death...’ Health insurance for employees. Firm’s Luxembourg and Moscow offices are regulated by the jurisdictional regulations. Our insurance practice includes areas such as, The IA issued board of directors’ Resolution Number 3 of 2010 on Directives of Professional Practice and Code of Conduct for Insurance Companies Operating in the UAE. Article 12 provides for duties and authorities of the Board. The Directive shall be published in the Official Gazette and put into effect following the expiry of three months as from the date of its publication, which is March 21, 2010. Complaints Register. The Bankruptcy Law is a major step forward and is influenced by features of a number of insolvency law regimes in other jurisdictions, as well as international insolvency law trends. In the next feature, we will be covering more on insurance law including regulatory updates, Licensing Health Insurance Third Party Administrators and Regulation and Control of their Business, Insurance Brokers Regulations, and the DIFC/DFSA framework. Thank you for your interest in working with Al Tamimi & Company. Some of these changes impose new limits on the amount of exposure that UAE insurers can have to particular asset classes by limiting their invested assets at any one time to: For government debt securities, insurers may invest 100% of their assets in securities issued by a UAE Emirate and 80% of their assets in securities issued by a foreign country with an A-credit rating. All about the new Health Insurance Law in Dubai The new Health Insurance Law for Dubai (Insurance Law No. Most companies in the UAE include health insurance as part of their salary package. A new law regulating the use of technology in healthcare is the first piece of federal legislation in the United Arab Emirates that directly addresses data protection principles. Any person distributing this document is required to distribute it The Article also encourages insurance companies to resolve their disputes amicably or through Emirates Insurance Association before seeking judicial involvement. That said, there are a number of measures that can be used to lessen the effect of the foreign ownership rules and to allow alternative means of control of UAE insurers. The Insurance Law was amended in 2018 pursuant to UAE Federal law 3 of 2018. The operation and interpretation of insurance contracts are governed by UAE Federal Laws No. This is surprising because the UAE, along with other GCC countries, is very underpenetrated in terms of the insurance.  In the case of trade credit insurance, for instance, this underpenetration is particularly stark.  Despite the importance of international trade to the GCC and the region’s USD $2.4 trillion economy, the penetration of trade credit insurance is 4 times lower than it is in the US and 6 times lower than it is in Europe. In other words, an arbitration clause, simply … The insurance company must also provide data or information requested by the Director General of Insurance Authority for insurance applications that are rejected by the company. STA Law Firm Limited is a company incorporated pursuant to Abu Dhabi Global Market Companies Regulations. Disclaimer: This chat service should not be relied upon as a substitute for professional advice which takes account of your specific circumstances and any changes in the law and practice. We have experienced insurance defense lawyers who can help you claim your policy from the insurance companies. Article bars insurance companies from making any false or misleading disclosures and further provides that insurance company should not include incorrect information in respect of the financial situation of the company thereby giving an inaccurate impression to the public. UAE Arbitration Law 6 requires that the arbitration agreement must in writing, either in an exchange of correspondence (including electronic correspondence) or as part of a written contract. Article 28 (2) of the UAE Insurance Law (Federal Law No. Insurance Application. However, under the UAE law 7, Arbitration Agreements contained within insurance contracts are void unless they are "separately agreed" by the parties. In the circumstances, the new insurance regulation that can be expected to have the most pronounced and direct impact on energy claims is the recent amendment to the Insurance Law. The insurance policy must further set out that any amendment to the policy shall not be valid unless expressly agreed by parties in writing. Changes announced in February this year by the Insurance Authority, the statutory body charged with licensing and regulating UAE insurers, are evidence of this policy as well as of a need to ensure that insurers are able to withstand future economic shocks. After months of deliberation, you’ve finally made the big purchase and become the owner of a brand new car. Minimum GoT Shareholding Regulations Published, Definitions. Article 119 of the Law empowers the UAE Cabinet with an exclusive power to issue regulations needed to implement provisions of Law number 6 and this includes issuing regulations relating to fees, the minimum share capital of insurance companies, and other aspects necessary for the insurance industry. Dubai’s health insurance is regulated by the Dubai Health Authority (DHA) and governed by Law No 11 of 2013 (Dubai Law). Dubai. Advertising of Life and Capital Formation Insurance Policies. Health Insurance Law of Dubai Employer’s Information Pack 06 April 2014 This document is an official DHA document intended for distribution to employers and other parties interested in the Health Insurance Law as it affects employers. The terms and conditions set out in the insurance policy must be certain and definite and not loose or vague so as to avoid any misunderstanding. Liabilities of Bail Guarantor under the UAE Criminal Law, The Law Surrounding Eavesdropping, and Privacy, Extension of Time in Construction Contracts, Implications of Bounced/Dishonoured Cheques under UAE Law, Key Decisions on Dubai Property Laws between 2009 and 2013 by Dubai Court of Cassation, ADCCAC - The Abu Dhabi Commercial Conciliation & Arbitration Center, Vessel Arrest - Overview of Dubai and UAE Laws, Att(H)ack - Anti Cyber Crime Law in Saudi Arabia, Registration and Importation of Pharmaceuticals in UAE, Medicinal Product Regulation and Product Liability in the United Arab Emirates: An Overview (Part I of II). 5 of 1985 (the Civil Code) and No. The Best Insurance Lawyers in Dubai. Please choose one of the following options below: Notarial services and document certification, no more than 30% of UAE equity instruments, including mutual funds; and. These include a Public Joint Stock Company (PJSC), a branch of the foreign insurance company; and insurance agents. Our knowledge, experience, and expertise are now available on the go. The following types of insurance are available in the UAE: Life insurance Health insurance; Property insurance (motor, fire, marine) The new rules will be relevant to healthcare providers, insurers and companies delivering healthtech solutions into the UAE … Further plans to update data protection law in the Dubai International Financial Centre (DIFC) and Oman have been outlined too. Pricing. The Directive requires insurance companies to inform their clients on renewal terms, inform that the insurance policy will not automatically renew (unless agreed otherwise). The insured pays to the insurer a specified sum or periodical instalments (that is, the premium) and if the specified risk materialises, the insurer must make payment (Article 1026 (1), UAE Civil Code). The Health Insurance law number 11 of 2013 (the Health Insurance Law) came into effect on 1 January 2014 which makes health insurance cover mandatory in Emirate of Dubai … My Tamimi App, a convenient new tool for anyone with an interest in the legal sector, from law students to General Counsel. The inspectors of Insurance Authority shall have the right to examine complaints' register to verify the information state therein. In preparing the specimen for insurance application, insurance companies must ensure that the questions raised therein are clear and comprehensible, spell out clearly terms and conditions related to coverage of insurance policy, provide warnings on consequences of not giving information or give incomplete or inaccurate information, and further the information must be submitted by authorized representative of client and not by its employees. The Firm’s trademark and intellectual property is assigned in favor of the affiliates for all purposes in accordance with the assignment agreement. The legislations organising free zones in the Emirate of Dubai, Have issued the following Law: Name of the Law Article 1 This Law shall be called “Dubai Health Insurance Law No. Kindly accept the disclaimer to proceed to a live chat. In dealing with Insurance Authority and other bodies, the insurance company must at all times transact in a transparent and professional manner. Implemented from February 2014 the Insurance System for Advanced Healthcare in Dubai (ISAHD) was staged over three phases according to employer workforce size, the last phase being completed in June 2016. This article requires insurance companies to adopt suitable procedures, specimen forms, specify documentation, and determine the suitable term required to deal with claims. Publicity and Advertisement. This article imposes obligations on insurance companies requiring them to conduct their operations transparently, in good faith, and in accordance with best practices. Thank you. Please click here to view our latest job openings. The contents of the insurance policy should be clear, and easily readable. This Article replaces the Rules Organizing Dealings of the Insurance Companies in UAE Insurance Market implemented by the Ministerial Decree No.296 of 2004 issued by the Minister of Economy. The insurance company must maintain individual records for every client and register complaints submitted by clients to establish particulars of information such as the date of the complaint, the name of complainant, and related details. This means that the only way that a non-GCC wholly-owned foreign insurer can operate in the UAE is to acquire a stake of not more than 49% in an existing UAE insurer. 6 of 2007 (PDF, 1 MB). The resolution mandates every insurance company to establish strong AML procedures, know your client disclosures and is subject to inspection of Insurance Authority inspectors. The insurance company must notify the client of progress and upon arriving at a decision – notify the client of same within fifteen days from the date of receiving the full claim. STA (the Firm) represents a group of internationally qualified counsels. Additionally, HAAD and DHA may issue fines to its permit holders for conducting insurance related business with an unlicensed entity. An alternative to this approach is investing in an insurer incorporated in the Dubai International Financial Centre (DIFC). This Resolution has been effective from 6 April 2019 and UAE insurance entities (as mentioned below under applicability) must ensure that they are compliant with the Insurance Law and Regulations. In the event, the insurance policy is nearing the end of the term, the insurance company must inform clients of the same. Health Insurance Law of Dubai Employer’s Information Pack 1 October 2014 This document is an official DHA document intended for distribution to employers and other parties interested in the Health Insurance Law as it affects employers. 6 of 2007, as amended by Federal Law No. The Resolution applies to all insurance companies registered with the Insurance Authority operating in the UAE. Other than these changes announced by the Insurance Authority, the legal requirements for the establishment and conduct of insurance operations in the UAE remain the same.  This means that the only way that a non-GCC wholly-owned foreign insurer can operate in the UAE is to acquire a stake of not more than 49% in an existing UAE insurer.  Even then, as a UAE insurer is required to be established as a public company listed on either the Abu Dhabi Securities Exchange or the Dubai Financial Market, the corporate governance requirements that apply to listed entities will continue to limit the ability of a foreign investor to control a UAE-licensed insurer.  Under UAE law, the chairman and a majority of the board of directors must be UAE nationals.  A majority of the board must also be comprised of non-executive directors and at least one-third must be independent directors. The Insurance Law provides that anyone who engages in insurance activity in the UAE without the appropriate license may be punished by a fine of between 250,000 Dirhams and 1,000,000 Dirhams. In line with provisions of Article 119, the UAE Cabinet issued a resolution (Cabinet Resolution 42 of 2009) raising minimum statutory paid up share capital for insurance and reinsurance companies to UAE Dirham 100 million and UAE Dirham 250 million respectively; and further states that insurance companies must comply with terms of the said resolution on or prior to January 31, 2013. The resolution came in to effect from February 2010 and criminalizes money laundering activities. Other than these changes announced by the Insurance Authority, the legal requirements for the establishment and conduct of insurance operations in the UAE remain the same. Article 7 of the Insurance Law provides for duties and responsibilities and duties of the IA, Article 8 provides for the composition of IA to include a board, director general, and executive body. 1 of 1987) … A license is valid for one year and renewable on a yearly basis. The Firm has a presence across the UAE and its branch in the Emirate of Abu Dhabi (regulated by Abu Dhabi Judicial Department). The companies with the different number of employees were granted different deadlines. Article 11 requires insurance companies to provide the draft specimen of insurance policies, samples of advertisement or media to Insurance Authority prior to releasing the same or broadcasting it to the public. This Article requires insurance companies to exercise a higher degree of caution when releasing any information to the public in relation to insurance of individuals and fund operations. 11 of 2013. It expires at the end of December each year. Protecting rights of insured and beneficiaries of insurance operations, monitoring solvency of insurance companies (Article 7 (i)); Devise code and rule of conduct to enhance capabilities of insurance companies (Article 7 (ii)); Manage administrative areas, formulate programs and plans for the overall development of the insurance sector, identify risks, and approve incorporation of insurance companies; Devising laws (include draft laws and regulations), regulations and directives relevant to the insurance industry and implement the same (Article 12 (1) to Article 12(3)); Approve annual budget, annual accounts, and appointment of an auditor (Article 12(4) to Article 12(6)); and. Many companies provide Islamic insurance (Takaful) services. Al Tamimi & Co has considerable experience in advising and assisting local and international insurers with establishing a presence in the DIFC and on-shore in the UAE. i Sources of insurance law and regulation The UAE Civil Transactions Code, Federal Law No. Register your Email ID to subscribe to Court Uncourt. Insurance Law in Dubai UAE | Hire Insurance Claim Lawyers in UAE The scope of insurance law involves dealing with issues such as health, car, life, property and more. 11) will be implemented in phases through to 2016, based on company size as follows; For employers with employees numbering 1000 or more: 31 October 2014; For employers with 100-999 employees: 31 July 2015; In cases where the information is presented involves statistical figures, such figures should be precise and presented in the accurate technical form. The article requires insurance companies to adopt necessary mechanisms with regards to anti-money laundering (AML) and provides that insurance policies and other documents must be in Arabic along with an accurate translation copy of the same (In event of the conflict, Arabic text supersede). no more than 20% of non-UAE equity instruments, including mutual funds. The UAE Insurance Law (Federal Law 6 of 2007) applies to all insurance business in the UAE. Policy Renewal. 9 of 1984 concerning Insurance Companies and Agents (the Old Insurance Law). The government body issued a third draft of the decision taken by IA’s board of directors on its website detailing its proposed overhaul of the life insurance and family takaful business in the UAE. In general terms, the Bankruptcy Law streamlines and modernises UAE insolvency law and, places a new emphasis on the early restructuring of indebtedness for distressed companies. Companies wishing to obtain a license from the Insurance Authority must meet certain requirements set by the Regulations. negative control); entering into a nominee arrangement or a management agreement with a UAE national investor (as opposed to the articles of association which are largely in a standard form); agreeing on certain director appointment rights (although these rights would be subject to the corporate governance requirements referred to above). The Insurance Law sets out the requirement for an entity to be able to carry out insurance business in the UAE and sets out that such entity must be either a UAE public stock company, with at least 51% of capital held by UAE or GCC nationals, or legal entities fully controlled by UAE or GCC nationals, or a branch of a foreign insurer. Initially, Sharjah Government provided health coverage only to Sharjah Government employees, their dependents and and Senior Emiratis (those who are 60 years old or above). Insurance companies are required to service their clients in a timely and professional manner, insurance companies must make insured aware of means to prevent accidents, provide necessary documents and technical statistics to the insured. Dubai. Construction, motor, and health insurance are compulsory within the UAE, the latter of which is only applicable to companies with a minimum number of employees by virtue of the Dubai Health Insurance Law, Law No. Topics which have not been addressed by the For a reasonably comprehensive medical insurance policy you can expect to pay around 10,000 AED per year (2,720 USD). The UAE Insurance Authority is forging ahead with new regulations to transform the way savings, investment and life insurance policies are sold, offering investors better protection. By Aparna Pengat October 17, 2017. share this article. Insurance Policy. Within the United Arab Emirates, insurance is largely governed at a Federal level by the Insurance Authority (IA) which was established pursuant to Federal law Number 6 of 2007 (the Insurance Law). The Health Insurance law number 11 of 2013 (the Health Insurance Law) came into effect on 1 January 2014 which makes health insurance cover mandatory in Emirate of Dubai including free zones. The insurance policy must clearly describe and indicate the subject matter of insurance, procedures to be followed by insured upon the occurrence of the insured risk, along with insertion of a special clause on arbitration as a mean to settle the dispute between the parties. Car insurance is mandatory as per the UAE RTA law and finding the one that fits your need and budget requires some homework. Offering Insurance Services and Products. Please click here leave a message and we will get back to you shortly. To learn more about our services and get the latest legal insights from across the Middle East and North Africa region, click on the link below. In March 2015, the UAE Minister of the Economy confirmed that the federal government was working on legislation designed to allow for full foreign ownership of companies operating outside the UAE’s economic free zones.  However, the legislation is likely to apply only to foreign companies operating in certain sectors of the economy and insurance is unlikely to be one of those sectors. 11 of 2013.” Definitions Article 2 The following words and expressions – wherever appear in this Law – shall have the The resolution sets out several important key terms requiring insurance companies to adopt and practice in operation of their business in the region. The Health Data Law applies to all entities operating in the UAE and the Free Zones that provide healthcare, health insurance, healthcare IT and other direct or indirect services related to the healthcare sector, or engaged in activities that involve handling of electronic health data (Health Service Providers). Justin Carroll Our insurance claim lawyers in UAE offer the complete range of legal advisory and services for individual and corporate insurance claims. As an insurer based in the DIFC is not treated as a UAE insurer, acquiring a DIFC insurer which is subject to the less restrictive ownership rules of the DIFC will give foreign investors the ability to establish an initial presence in the UAE. Which service are you looking for? The law replaced the previous enactment being Federal Law No.9 of 1984 on Insurance Companies and Agents and the amending laws. Settlement of Disputes Between Insurance Companies and Payment of Balances. Below is a brief overview of the Resolution: © Copyright 2021 STA Law Firm All Rights Reserved, Law on Artificial Intelligence and Robotics (8), Law on Consumer Protection in Dubai and UAE (1), Laws surrounding Aerospace and Aviation (13), Trademarks - Registering Colour Marks (7), Travel ban vs. Deportation order - UAE Criminal Laws, Tenancy Law of Abu Dhabi and its Amendments, New UAE Commercial Companies Law: Detailed Insight and Review, Bail Fail? Under UAE law, insurance is a contract whereby the insured and insurer co-operate in placing cover for an insured risk or event. 5 of 1985 (as amended by Federal Law No. The law suggests the parties to settle the disputes amicably or through the Emirates Insurance Association (EIA) before approaching the Court. 6 of 2007 concerning the Establishment of the Insurance Authority and Regulation of Insurance Operations (the Insurance Law), which replaced Federal Law no. The Directive requires insurance companies to abide by fair pricing practices, and not to charge premiums with inflated amounts, nor reduce the premiums rates, provide a detailed statement of rates to client, adhere to insurance pricing practices, and notify the Insurance Authority of rates the insurance company intends to apply or modify provided however that such notification is made at least thirty days prior to putting them to use. On the other hand, insurers established in the DIFC are limited in the type of insurance that they can offer.  An insurer based in the DIFC may only insure DIFC risks or non-UAE risks.  In relation to UAE-based risks, DIFC insurers may only offer reinsurance. General Provisions. 6 of 2007 (the Insurance Law). According to a report by Tech Radar, Mohammad Al Zarooni, director at the TRA, said that a data protection law will be drafted for the UAE to support the TRA's new national cybersecurity strategy for 2020-25.   If you are considering setting up in either of these jurisdictions, Al Tamimi & Co can advise and assist you with achieving your commercial objectives. Insurance Authority regulates and supervises the insurance sector in the UAE in accordance with Federal Law No. This Article sets out that insurance companies shall settle their balances and accounts to ensure smooth operation and with the aim of avoiding any disputes. The specimen application must include an advice note informing clients to keep the documents in a safer place and the insurance company must provide the client with a copy of his insurance application. Claim Procedure.This article sets out the claims procedure.

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