⚠ आधिकारिक अनुवाद — अरबी मूल कानूनी रूप से बाध्यकारी संस्करण है।
106 अनुच्छेद
We, Mohammed bin Zayed Al Nahyan, President of the United Arab Emirates,
- Having reviewed:
- The Constitution;
- Federal Law No. (1) of 1972, on the Competences of Ministries and the Powers of Ministers, as amended;
- Federal Law No. (6) of 2007, Regulating Insurance Business, as amended;
- Federal Decree-Law No. (14) of 2018, on the Central Bank and Regulation of Financial Institutions and Activities, as amended;
- Federal Decree-Law No. (32) of 2021, on Commercial Companies; and
- Based on the Proposal submitted by the State's Vice-President, the Deputy Prime Minister and the Minister of Presidential Court, and the Cabinet approval thereof, Hereby enact the following Decree-Law:
Chapter One Preliminary Provisions
Definitions For the purpose of applying the provisions of this Decree-Law, the following words and expressions shall bear the meanings assigned thereto respectively, unless the context requires otherwise: The State
: The United Arab Emirates.
The CBUAE
: The Central Bank of UAE.
Board
: The CBUAE's Board of Directors.
Chairman
: The Chairman of the Board.
Governor
: The CBUAE's Governor.
Free Zone
: Any financial free zone established in the State under the provisions of superseding law.
Insurance Company (Insurer)
: An insurance company incorporated in the State and a foreign insurance company licensed to engage in insurance business in the State, either through a branch or through an Insurance Agent.
Reinsurance Company
: A reinsurance company licensed to engage in reinsurance business, either in the State or abroad.
Companies
: Insurance and reinsurance companies.
The Insured
: A Person that enters into an insurance policy with the Insurance Company for their benefit or the benefit of the named Insured or the Beneficiary.
Beneficiary
: A Person who initially acquires the Insurance Policy rights or to whom such rights are legally transferred.
Insurance Policy
: A contract between the Insurer and the Insured setting out the insurance terms, rights and obligations of both parties or the rights of the insurance Beneficiary, and the annexes attached to the policy constitute an integral part thereof.
Insurance Agent
: A Person licensed or authorized the CBUAE, and is approved by the Insurance Company and authorized to carry out insurance activities on its own behalf or on behalf of a branch thereof.
Insurance Broker
: A legal person licensed by the CBUAE and acts as independent intermediary in insurance and reinsurance operations between an insurance or re- insurance applicant on the one side and any Company on the other side, and receives, in consideration of its efforts, a commission from the Company with which insurance or reinsurance is concluded.
Surveyor and Loss Adjuster
: A Person licensed or authorized by the CBUAE to detect and assess the damage incurred as a result of the insured risk.
Insurance Consultant
: A Person licensed or authorized by the CBUAE to examine insurance requirements for their clients and give advice in respect of the suitable insurance coverage, assists in preparing insurance requirements and receives their fees from their clients.
Actuary
: A Person licensed or authorized the CBUAE to set the value and price of Insurance Policies, and to asses the technical provisions, accounts and all
matter related thereto.
Health Insurance Claims Management Company
: A legal Person licensed the CBUAE to engage in health insurance claims management business.
Insurance- Related Professionals
: Any Person licensed or authorized the CBUAE to operate as an Insurance Agent, Insurance Broker, Surveyor and Loss Adjuster, Insurance Consultant, Actuary or health insurance claims manager, or any other profession related to insurance as determined and regulated by a resolution of the Board.
Branch
: A branch of the Company that carries out insurance activities in its own name.
Premium
: An amount of money paid or payable by the Insured under the Insurance Policy and is called "Contribution" in Takaful insurance.
Authorized Manager
: A natural Person appointed by a foreign insurance Company to manage its branch in the State.
Senior Employee
: Any Person who occupies an executive position equivalent to the functions of a director-general, Authorized Manager or the deputy or assistant of either one, or any department director, internal audit director or branch manager.
Technical Provisions
: Provisions which the Insurer must deduct and retain to cover the Insured's accrued financial obligations vis-a-vis the Insured, pursuant to the provisions of this Decree-Law.
Solvency Margin
: A surplus in the value of the Company's existing assets over its liabilities to such an extent that enables it to fulfil all its obligations and pay the required insurance payouts once they become due without impeding the Company's business or weakening its financial position.
Minimum Guarantee Fund : An amount equal to one third of the required Solvency Margin or the amount determined by the Board, whichever is greater.
Auditor
: A Person authorized to carry out accounting and audit functions in the State.
Takaful Insurance
: A collective contractual scheme intended to achieve solidarity and cooperation among a group of contributors to address certain risks, where each one pays an amount of money called "contribution" to be deposited in a Takaful insurance fund through which compensation is to be paid to eligible persons when a risk is sustained.
Higher Sharia Authority [HAS]
: The authority established under Federal Decree-Law No. (14) of 2018, referred to hereinabove.
Person : A natural and legal Person.
Commercial Register
: The Register established with the competent authority under Federal Decree-Law No. (37) of 2021, on the Commercial Register, or any other superseding law.
Scope of Application
1. The provisions of this Decree-Law shall apply to the following categories:
a. Insurance Companies and Insurance-Related Professions; and
b. Holding companies that control or acquire (15%) of the volume of insurance business in the State, or whose insurance activity and related services represent more than (50%) of their revenues. The Board shall issue the controls governing the operation of such Companies in the insurance activity.
2. The provisions of this Decree-Law shall not apply to the Companies operating in the financial Free Zones, save as specifically provided for in this Decree-Law.
Insurance Concept An insurance is a contract whereby the Insurer undertakes to pay the Insured or the eligible Beneficiary an amount of money, an arranged revenue or any other monetary compensation in case the insured incident or risk has occurred, in return for Premiums or any other regular payments to be paid by the Insured to the Insurer.
Chapter Two Insurance Business
Insurance Types The insurance business shall be divided into the following types:
1. Insurance of Persons and fund accumulation operations; and
2. Property and liability insurance. The resolutions, statutes, regulations and instructions issued by the Board shall determine the insurance activities that fall under each insurance type of the above.
Compulsory Insurance The Board may impose compulsory insurance against some risks under any regulations whereby the controls and conditions of insurance and other provisions related thereto are identified.
Insurance Services Fees
1. The CBUAE shall charge fees for supervision and control, in addition to any other chargeable fees for the services provided the CBUAE under the provisions of this Decree- Law, including the services of issuing licenses and permits.
2. The Board shall issue a resolution determining the fees referred to in Clause (1) above, and shall publish the same in the Official Gazette.
Establishment of Funds The CBUAE may establish funds with an independent legal person for the purpose of protecting policyholders, Beneficiaries and aggrieved persons. A resolution shall be issued by the Board specifying the method of forming such funds and their objectives, mechanism of finance, risks covered by them and benefits they provide when such risks occur, methods of their termination and the provisions of their liquidation.
Chapter Three Functions of the Board and the Governor
Functions of the Board The Board shall adopt the policies, regulations and rules necessary for regulating insurance business, pursuant to this Decree-Law, including the following:
1. The Solvency Margin and the Minimum Guarantee Fund controls according to the generally-accepted international standards in this regard;
2. Basis of calculating the Technical Provisions;
3. Reinsurance criteria and controls;
4. Basis of investing the Company's assets;
5. Determining the Company's assets that meet the accrued insuring obligations;
6. Accounting policies to be adopted by the Company and the required forms to prepare and present financial statements;
7. Basis of developing accounting books and records of the Companies, Agents, and Brokers, along with determining the data to be recorded in such books and records;
8. Records which the Company commits itself to maintain and the description of such
records, as well as data and documents that must be furnished to the CBUAE;
9. Conditions, controls and ethics for practicing the insurance and reinsurance activity and the Insurance-Related Professions;
10. Anti-money laundering and combating terrorism financing and the financing of illegal organizations in insurance activities, in cooperation with the relevant authorities;
11. Insurance policy rates it deems appropriate and the technical grounds thereof;
12. Controls and conditions for licensing the Companies and the Insurance-Related Professionals;
13. Minimum capital for the Companies and the Insurance-Related Professionals;
14. Rules and controls necessary to protect clients of the Companies and Insurance-Related Professionals and provide them the appropriate Insurance Coverage;
15. Conditions, rule and controls for approving Auditors of the Companies and the Insurance-Related Professionals and their obligations;
16. Setting out and determining the Emiratization targets in the insurance sector, monitoring the compliance with such targets and imposing penalties and fines on the Companies and the Insurance-Related Professionals that do not comply with the same, and to that end, it may coordinate with the relevant authorities or may entrust them with any of such functions; provided that the Board shall set a mechanism for the retention and disposition of amounts of such fines, and the CBUAE shall submits an annual report to the Cabinet on the Emiratisation targets and the actions that have been taken to achieve such targets;
17. Regulating Takaful Insurance business, including the provisions and procedures for appointing and approving the Sharia Supervisory Committee and the conditions required to be fulfilled by its members;
18. The financial reporting system and the external audit of the Companies and the Insurance-Related Professionals;
19. Regulations, rules, standards, directives and instructions related to inspection operations and procedures of the Companies and the Insurance-Related Professionals; and
20. Regulations, rules and standards related to the competency of the Senior Employee.
Functions of the Governor
1. The Governor shall issue the policies, regulations, statutes, instructions and rules approved by the Board, and shall issue the resolutions and instructions necessary for implementing the same.
2. The Governor shall be responsible for applying the provisions of this Decree-Law and the CBUAE's regulations and the Board's resolutions issued in pursuance thereof.
3. The Governor may delegate his functions set forth herein to any of his deputies, assistants or other Senior Employees of the CBUAE; provided that the delegation is in writing and for a specific period.
Chapter Four Insurance Companies
Engagement in Insurance Business Any of the following Persons licensed the CBUAE may engage in insurance business in the State:
a. An Insurance Company incorporated as a public joint-stock company in the State; and
b. A branch of a foreign Insurance Company.
Prohibition of Combination of Insurance Operations
1. Insurance Companies may not combine persons and fund accumulation insurance operations and property and liability insurance operations.
2. Existing companies licensed to carry out the two types of insurance before issuing
3. The Companies referred to in Clause (2) above shall comply with the following controls:
a. Complete separation between persons and funds accumulation insurance operations and property and liability insurance operations in terms of technical, financial, technological, administrative and legal procedures and the relevant technical, administrative and financial systems and staff, except for the Company's Director General; and
b. Drawing up all financial reports and statements required by virtue of this Decree- Law and the Board's instructions and resolutions on a unified aggregate basis, and on the basis of the separation between persons and funds accumulation insurance operations and property and liability insurance operations.
4. Notwithstanding the provisions of Clause (2) above, the Cabinet may, at the proposal of the Board, issue a resolution obligating Insurance Companies to adjust their affairs pursuant to the provisions of Clause (1) above, or may issue a resolution that such Companies remain carrying out the two types of insurance and while being prohibited from issuing new Insurance Policies combining the property and liability insurance and the persons and funds accumulation insurance operations, in accordance with the controls and requirements set by the Cabinet in this regard.
Insurance with a Company Abroad
1. Insurance brokerage for funds or property existing in the State or for the liabilities arising therefrom may only be carried out by an Insurance Company licensed under the provisions of this Decree-Law.
2. The Company may reinsure any property inside and outside the State.
3. No Person may conclude an Insurance Policy with an Insurance Company outside the State to cover any money or property in the State or liabilities arising therein. No legal person in the State may insure its personnel in the State with an Insurance Company outside the State.
4. Notwithstanding the provisions of Clause (3) above, insurance may be made with an Insurance Company in the State in case the required Insurance Coverage is not available in the State, or Insurance Companies abstain from, or unable to provide such coverage, or for any other reasons decided the CBUAE, in accordance with the controls and conditions determined by the Board in this regard.
Insurance Policy Language
1. The Insurance Policy shall be drawn up in the State in Arabic, and an accurate translation into any other language may be attached therewith. In case of discrepancy in the translation of the policy, the Arabic text shall prevail.
2. The policy's clauses exempting the Insurance Company from liability shall be written in bold with a different colour, and must be approved by the Insured beforehand.
3. Insurance Policies may be electronically issued, in accordance with the terms and conditions established by virtue of a resolution by the Board.
4. Notwithstanding the provision of Clause (1) above, the Governor may exclude certain Insurance Policies from the condition of being drawn up in Arabic if so requested the CBUAE.
Chapter Five Governance of the Companies
General Framework of Governance The CBUAE shall set the general framework for governance of the Companies, as well as the regulations and rules for organizing the work of their boards of directors. the CBUAE shall also set the conditions that must be fulfilled by board candidates and the conditions for appointing their Senior Employees; provided that the Companies whose securities are listed on financial markets of the State shall comply with the governance requirements issued by SCA.
Conditions of Appointment of Board Member, Director General or Authorized Manager of the Company A Person to be appointed as a board member, Director General or Authorized Manager of the Company must:
1. Have never been convicted of a felony or misdemeanor involving moral turpitude and breach of trust or of insolvency, unless rehabilitated; and
2. Have never been punished with any administrative sanction determined by a decision of the Board, on the grounds of committing a violation of any of the provisions of this Decree-Law or Federal Decree Law No. (32) of 2021, referred to hereinabove, in his
capacity as a Director General or board member of a Company or beneficial owner thereof or controlling over its capital, including the liability for causing loss, bankruptcy or liquidation of the Company.
Prohibitions
1. The Company's chairman, board member, Director General and Authorized Manager or who acts on their behalf shall be prohibited from:
a. Engaging in managing other competing Insurance Company or any company that carries out the same or similar Insurance activity;
b. Competing the Company's business or carrying out any action or activity that conflicts with the Company's interest;
c. Practicing as an Insurance Agent or Broker; or
d. Receiving a commission for any insurance operation.
2. Any Person who assumes the management of the Company or any employee thereof may not be a representative of any shareholder of the Company.
Conditions for Appointment of Senior Employee
1. In order for a Senior Employee to be appointed, he/she must fulfil the same conditions set forth in Article (15) above, in addition to the fulfillment of the qualifications, efficiency and expertise requirements necessary for carrying out insurance operations. The Company shall provide the CBUAE with a detailed statement containing the academic qualifications, practical experience and documents supporting the above.
2. The Board shall issue a resolution defining the academic qualifications, the practical
experience and the documents referred to in Clause (1) above.
Vacant Position The Company shall notify the CBUAE in case the position of the Company's board member, Director General, Senior Employee or Authorized Manager becomes vacant. The Company's board of directors or the Company, as the case may be, shall fill the vacant position within a period not exceeding (30) days from the date of being vacant, after obtaining the approval of the CBUAE.
Providing the CBUAE with Meeting Minutes The Company's board of directors shall provide the CBUAE with copies of the board's minutes of meetings and decisions related to the election of the Company's chairman, vice-chairman and members authorized to sign on behalf of the Company and their specimen signatures, within (7) seven days from date on which such decisions are issued.
Resignation of Board Members Should the chairman and board members submit their resignations or should the vacant positions reach one quarter of the Company's board members, the Governor shall:
1. Form an interim committee comprising experienced and specialized individuals and appoint a chairman and vice-chairman thereto to assume the management of the Company;
2. Call for a general meeting within a period not exceeding (3) three months following date
of forming the committee, renewable for a similar period only once, in order to elect a new board of director of the Company. The Company shall bear the committee's remunerations, as decided by the Governor.
Protection of the Company
1. The CBUAE shall take whatever measures it deems appropriate for the proper functioning of the Company's business, in accordance with the controls determined by the Board. To that end, the CBUAE may:
a. Request to hold a general meeting to discuss any subject the CBUAE deems critical;
b. Request to include any item the CBUAE deems necessary to be included on the Company's general meeting agenda, even while the general meeting is being held; and
c. Stay the execution of any decision issued by the Company's general meeting if it contradicts the laws or regulations in force.
2. If the Company's general meeting is unable to take a decision on the appointment of its Auditor, or if the appointed auditor rejects the appointment for any reason whatsoever, the CBUAE may appoint an Auditor for a period of one fiscal year and determine their fees at the Company's expense.
3. If the Company's general meeting is unable to appoint members of the Sharia Supervisory Committee, pertaining to Companies where such committee is required, or if this appointment is not possible for any reason, the CBUAE may appoint the members of the Committee and fix their remunerations at the expense of the Company.
Publication of the Call to the General Meeting
1. The Company may publish a call to hold the general meeting in newspapers only following the approval of the CBUAE of the publishing. The Company may only include any additional items on the general meeting's agenda subject to prior approval of the CBUAE.
2. Subject to the provisions of Clause (1) above, a Company whose securities are listed on financial markets may publish an invitation to the general meeting in newspapers only following the approval of SCA.
Technical Provisions and Reserves Required to be Maintained The Company, in implementation of the instructions issued by the Board, shall maintain the following:
1. Solvency margin and the Minimum Guarantee Fund, as per the type of insurance carried out by the Company;
2. Technical Provisions estimated at the end of each fiscal year; and
3. Reserves to be maintained in the State.
Appointment of Actuary The Company licensed to engage in insurance business shall appoint or approve a registered actuary, pursuant to the provisions of Article (65) hereunder, within one month from date of being granted the license, and shall so notify the CBUAE within one month from the date of appointment or approval of the Actuary.
Insurance Pool Insurance Companies may together create one or more insurance pool(s) to provide an Insurance Coverage of any branch of insurance or any specific operation for the benefit of the pool, pursuant to the bylaw of each pool; provided that the CBUAE's prior approval is obtained.
Chapter Six Obligations of the Company
Payment of Compensation The Insurance Company shall pay the compensation set out in the Insurance Policy to the Insured or to the Beneficiary, as the case may be, as soon as the insured incident occurs or the insured risk is realized. Whereupon, the Insurance Company shall subrogate the Insured for the indemnity it paid for damage in claims of the Insured vis-à-vis the party causing the damage for which the Insurance Company's liability has arisen.
Insurance of Vehicles The Insurance Company shall conclude the Insurance Policy for all motor vehicles licensed in the State when so requested by stakeholders. The Board shall set the insurance rates as commensurate with the severity of risks.
Provision of Data and Information
1. The Companies and the Insurance-Related Professionals shall provide any data or information requested the CBUAE about them or about any Company possessively related or associated therewith in any manner whatsoever, within the time limit set the CBUAE.
2. The Company's Board of directors shall invite the CBUAE to attend the general meeting before at least (15) fifteen days from date of its convention. the CBUAE may assign one of its employees to represent it for such purpose.
3. the CBUAE may assign one or more of its employees to verify or audit any of the Company's transactions, records or documents, within the normal business hours of the Company. The Company shall put any of the aforesaid at the disposal of the so assigned employee and shall cooperate with him to enable him to fully perform his duties.
4. CBUA may, based on the audit result, assign experts, consultants, Actuaries or Auditors to audit/check the Company's operations, evaluate its positions and submit a report thereon. The Company shall cooperate with them in a manner that enables them to fully perform their duties. The company shall bear their remunerations, as determined the CBUAE for any one of them.
5. The expert, consultant, Actuary or Auditor may not disclose to any third party whatsoever any information concluded under Clause (4) above without obtaining the CBUAE's written approval, except for the disclosure that is based on a court order.
Financial Reports
1. The Company shall provide the CBUAE with a detailed annual report on its operations signed by the board chairman, the Authorized Manager or authorized signatories of the Company, including the annual financial statements, financial reports reflecting detailed profits and losses of the type of insurance carried out by the Company and each branch thereof and the Auditor's report, within a period not exceeding (3) three months from the end of the fiscal year. the CBUAE shall be delivered a copy of the report, at least (15) fifteen business days before inviting to the general meeting.
2. The Company shall present the financial accounts and statements referred to in Clause
(1) above only after obtaining the CBUAE's approval.
3. The board chairman or Director General shall promptly notify the CBUAE if the Company is exposed to serious financial or administrative situations compromising rights of the Insured or Beneficiaries.
Insurance Policy Forms
1. The Company shall provide the CBUAE with forms of the Insurance Policies and their approved annexes, including the general and special terms and conditions, the technical grounds of such policies and the Premiums rates annexed thereto, and shall provide the CBUAE with schedules of the redemption values of life Insurance Policies and funds accumulation operations and the premiums rates annexed thereto.
2. Where the public interest requires or in case of imperfection that may compromise the interests of Policyholders, the CBUAE may request the Company to introduce an amendment to the forms of Insurance Policies and their approved annexes, within the
period determined the CBUAE for such purpose.
3. The Company shall provide the Insured and the Beneficiaries with copies of the Insurance Policies and the annexes thereof after the amendment is introduced, within the time limit set the CBUAE.
Article (31 ( Disclosure and Transparency The Companies shall comply with the principles of disclosure and transparency while dealing with the Insured and the Beneficiaries and in all policies, documents, leaflets, advertisements, publicity, articles and scientific materials issued by them, which are regulated by a resolution by the Board.
Article )32( Auditor
1. The Company's Auditor shall submit a prompt report to the CBUAE, with a copy thereof to the Company's board chairman in any of the following cases:
a. If they found out that the financial position of the Company does not enable it to fulfill its obligations vis-a-vis the Insured or Beneficiaries or hinders its capacity to fulfil the financial requirements set forth in this Decree-Law and the resolutions, regulations, statutes and instructions issued thereunder related to the financial position of the Company;
b. If they found out that there is grief imperfection in the Company's performance of its financial procedures, including entering data in its accounting records, and the existence of material deficiencies in the internal controls that could pose a threat to its financial position and stability;
c. If they refuse or have reservations in respect of any certificate or statement issued by the Company related to its income or financial statements;
d. If they fail to express their opinion on the Company's financial statements due to material misrepresentations or fraud;
e. If they find out that the Company does not comply with the laws, resolutions, regulations, statutes and instructions related to the Company's financial statements; and
f. If they decide to resign or their reappointment to the Company is rejected.
2. the CBUAE may request the Auditor to furnish it directly, within a specific period, with the information needed to monitor the Company's operations.
3. When the Auditor recommends that the financial statements filed thereto by the board of directors be rejected, the Company's general meeting shall decide the following:
a. To return the financial statements to the Company's board of directors and ask the latter to correct the statements according to the Auditor's observations and are deemed approved after the observations are corrected.
b. To refer the subject to the CBUAE to appoint a committee of expert Auditors and fix their remunerations to be charged by the Company to adjudicate the subject matter of the dispute between the Company's board of directors and its Auditor. Having been presented again to, and approved by the general meeting, the Committee's decision shall be binding and the financial statements shall be adjusted as per the committee's decision.
Chapter Seven Measures, Sanctions and Grievance Article )33( Measure and Sanctions
1. the CBUAE may conduct regular inspection of the Companies to ensure the soundness of their financial positions and their compliance with the provisions of this Decree-Law and the technical bases of carrying out insurance and reinsurance operations. To that end, the CBUAE may verify that the Company complies with the following:
a. Its fulfillment of its obligations and that the CBUAE shall not be held liable for its failure to do so or its inability to continue in business;
b. The Company does not commit any violation of the provisions of this Decree-Law or the resolutions, regulations, statutes or instructions issued in pursuance thereof;
c. The adequacy of measures taken by the Company on the reinsurance of risks assumed by the same;
d. Compliance with the license conditions necessary to engage in insurance business;
e. The Company's total losses shall not exceed (50%) fifty percent of its paid-up capital; and
f. It shall not cease to conduct its business without legitimate justification.
2. Where the Company fails to comply with any provisions of Clause (1) above, the CBUAE may impose whatever measures or sanctions it deems appropriate, and it may impose one or more of the following actions:
a. Serving a notice describing the nature of violation, procedures for remedying it and a mechanism for regularization.
b. Requesting the Company or the headquarters of a foreign insurance company, as the case may be, to take the necessary measures to regularize the administrative
situations therein, including deposing the Company's Director General, Authorized Manager or any Senior Employee thereof.
c. Deposing the Company's chairman and any board member proved to be responsible for the current status of the Company.
d. Forming a neutral committee of experts to replace the Company's board of directors for a period not exceeding (6) six months, renewable for similar period(s), if necessary, and in all cases the total periods may not exceed (24) twenty four months, defining its functions and appointing its members, chairman and vice-chairman. The Company shall bear the committee's fees, as determined the CBUAE. The procedures for electing and forming a new board of directors shall be proceeded pursuant to the provisions of Federal Decree-Law No. (32) of 2021, referred to hereinabove, at least
(30) thirty days before the expiry of the committee's work.
e. Taking the necessary actions to merge the Company into another Company, subject to the approval of the Company into which it will be merged.
f. Preventing the Company from concluding new Insurance Contracts or preventing it from carrying out one or more type of insurance.
g. Setting out a threshold limit for the total amounts of Premiums that the Company receives from the Insurance Policies issued by the same.
h. Maintaining assets in the State equivalent in value to all net obligations arising from its business in the State, or a certain percentage of its value determined the CBUAE.
i. Restricting the Company's engagement in any of its investment activities related to the Solvency Margin ratio, or obliging it to liquidate its investments in any of such activities for such purpose, unless the same would cause harm to the Company, as determined by the specialized expert.
j. Appointing an independent supervisory member from outside the CBUAE to attend the Company's board meetings and participate in discussions, without having a vote,
during decision-making, and the Board shall determine his functions and fees.
k. Suspension of the Company's license.
l. Revocation of the Company's license.
m. Restructuring of the Company.
n. Liquidation of the Company.
o. Imposing a fine on the Company not exceeding (AED 100,000,000) one hundred million dirhams.
3. The provisions of Clauses (1) and (2) above shall apply to the Insurance-Related Professionals, as commensurate with the nature of their professions.
4. The measures set out in Clause (2) above shall be imposed by virtue of a resolution of the Governor, other than the measures referred to in Paragraphs (e), (l), (m) and (n), which shall be imposed by a resolution of the Board.
Article )34) List of Violations and Fines The Board shall issue a list of violations committed by the Companies and the Insurance- Related Professionals, pursuant to the provisions of this Decree-Law and the fines imposed thereon.
Article )35 ( Filing Grievances Against CBUAE's Decisions
1. A grievance committee shall be established by the CBUAE to consider grievances filed against decisions, measures and administrative sanctions issued pursuant to the provisions of this Decree-Law. The Board shall issue the necessary decisions on the formation of the committee, rules of procedure, remunerations of its members, experts
to be engaged and all matters related thereto.
2. Save as regulatory and supervisory policies, resolutions, regulations, directives and instructions. The committee referred to in Clause (1) above shall decide on grievances against the CBUAE's decisions, pursuant to the provisions of this Decree-Law and the resolutions issued in pursuance thereof.
3. A grievance against a the CBUAE's decision shall be made within (20) twenty business days from the date of notification of the decision in accordance with the mechanism determined by the Board. The committee shall not accept grievances submitted after this time limit.
4. Decisions falling within the competence of the Committee, pursuant to the provisions of this Article, may not be challenged before courts before a grievance against them is filed and decided.
5. No grievance may be filed before the committee set out in Clause (1) above against decisions issued the CBUAE, pursuant to the provisions of Clause (2) of Article (41) hereunder.
Article (36( Inspection
1. the CBUAE may assign any of its employees or any other licensed or authorized Person to inspect the Company or any other Company owned by such Company or is affiliated thereto, in order to ensure the soundness of its financial position and its compliance with the provisions of this Decree-Law and the resolutions, regulations, statutes and instructions issued in pursuance thereof, as well as other laws and regulations in force in the State.
2. the CBUAE shall coordinate with the relevant regulatory authority in case of the inspection of Companies owned by the Insurance and Reinsurance Companies,
Insurance-Related Professionals or associated Companies, which are governed by the regulatory authorities.
3. the CBUAE may, in coordination with the relevant authorities in the State, inspect premises of any Person suspected to engage in any insurance and reinsurance business or the Insurance-Related Professions. To that end, the CBUAE may obligate the suspected Person to provide all information, documents and records related thereto and to seize them.
4. The Companies and the Insurance-Related Professionals and companies owned by and affiliated to the same shall provide the inspector with whatever data, information, records, books, accounts and documents related to the subject of the inspection on the dates specified by him.
5. The inspector may collect the necessary information and clarifications from any Person with whom the Company or the owner of the Insurance-Related Profession has a relationship with regard to the subject of the inspection.
6. The inspector may summon any Person at the time and place specified by them to provide information, data, documents or records related to the inspection.
7. the CBUAE may assign one of its employees or a specialized expert to guide the Company and the Insurance-Related Profession or supervise some operations within a specific period determined the CBUAE. If the expert is from outside the CBUAE, the Company and the Insurance-Related Profession shall pay his fees determined as determined the CBUAE.
8. The Company and the Insurance-Related Profession shall bear all expenses of inspection and investigation that another person is assigned to carry out, pursuant to the provisions of Clause (1) above, if it is proved that it violates the provisions of this Decree-Law and the statutes and resolutions issued in pursuance thereof.
Facilitation of Inspection The Companies and Insurance-Related Professionals or any of their managers or employees may not:
1. Prevent, obstruct, or hinder any employee or any other Person assigned the CBUAE from carrying out inspection or audit under the provisions of this Decree-Law;
2. Conceal any data, records or books requested the CBUAE or whoever is assigned to carry out inspection or audit; and
3. Issue any statements or give any inaccurate or misleading data, records or books.
Chapter Eight Funds of Insurance Companies
Bank Deposit Amount Every Insurance Company shall make a cash deposit in a bank operating in the State, as a security for implementing its obligations set forth in this Decree-Law, the amount of which shall be determined as follows:
1. (AED 4,000,000) four million dirhams for person and fund accumulation insurance referred to in Clause (1) of Article (4) above.
2. (AED 6,000,000) six million dirhams for property and liability insurance referred to in Clause (2) of Article (4) above. By virtue of a resolution of the Board, the amount of the deposit referred to in Clauses (1) and
(2) above may be increased. The deposit shall be made to the order of the Governor.
Disposition of the Bank Deposit The deposit may only be disposed of for the payment of debts arising from insurance operations carried out by the Company; provided that a prior written authorization of the Governor or his representative is obtained. If the value of the deposit diminishes below the prescribed limit if it is disposed of, the Company shall replenish the deposit amount within a period not exceeding (30) thirty days from the date of the CBUAE's request to replenish the deposit amount.
Mathematical Reserve of the Company The Company that carries out the type of insurance referred to in Clause (1) of Article (4) above must keep in the State funds whose value is at least equivalent to the full amount of the mathematical reserve of contracts concluded in the State or implemented therein. The Board may reduce the percentage of reserve the Company is required to keep. Such funds must be completely separated from the funds of other insurance operations. When calculating the aforementioned reserve, the deposit referred to in Clause (1) of Article
(38) above shall be taken into account, so that whichever value is greater shall be applicable.
Chapter Nine License
Approval and License
1. No Company may be incorporated in the State, and no branch of a foreign Insurance Company may be opened and no new branch may be added without the approval of the CBUAE.
2. No Person may engage in insurance business without having the relevant license issued the CBUAE, which may, as it deems appropriate for the need of the national economy, approve or reject the issuance of the license, and in case of rejection, the CBUAE shall be reasoned.
3. The Board shall revoke the license if it has been issued based on false information.
4. No unlicensed Company may issue the Insurance Policy. Any Insurance Policy concluded by an unlicensed Company shall be null and void, and a bona fide affected party may claim compensation.
5. The Board shall set the controls and requirements necessary for implementing the provisions of Clauses (1) and (2) above.
Reinsurance Controls The Company may not reinsure with another Company unless the other Company is licensed to carry out the insurance type entrusted to reinsure it according to the regulations issued by the Board.
Fiscal Year The fiscal year of the Company shall commence on 1st January and end on 31st December every year. However, the first fiscal year shall commence from the date of its registration in the Commercial Register and end on 31st December of the following year.
Chapter Ten Suspension and Revocation of the Company's License
Cases of the Company's Suspension The Governor may suspend the Company from carrying out one or more types of insurance for a period not exceeding one year, while informing both the Company and the relevant authority of the suspension decision, in any of the following cases:
1. In case the Company violates the provisions of this Decree-Law or the resolutions, regulations, statutes or instructions issued thereunder;
2. In case the Company lacks of any of the conditions required to be fulfilled in the license under the provisions of this Decree-Law;
3. In case the Company fails to engage in business by carrying out any type of insurance covered by the license, or ceases to engage in such business for of one year;
4. In case the Company is unable to fulfill its financial obligations; and
5. In case the Company refrains from implementing a final court judgement related to the Insurance Policy; The Company that has been suspended from carrying out one or more types of insurance shall implement its obligations that had been arisen before the suspension decision is issued.
Removal of Suspension or License Revocation Reason
1. If the Company removes, within a period not exceeding one year from the date on which the suspension decision is issued, the suspension reason, the Governor shall issue a decision approving it to continue in insurance business, and the CBUAE shall inform the relevant authority and the Company of the decision.
2. In the event that the time limit referred to in Clause (1) above expires and the Company fails to remove the suspension reason, the Board shall delicense the type of insurance subject of the suspension, and the CBUAE shall so inform the company and the relevant authorities.
Impacts of Suspension or Revocation of the License
1. The procedures related to the suspension of business or revocation of the license for one or more types of insurances under the decisions issued by the Board in this regard.
2. The issuance of a decision to suspend the business or revoke the license for one or more types of insurance shall:
a. Prohibit the conclusion of Insurance Policies for one or more types of insurance subject of suspension or Revocation; and
b. Consider all rights and obligations arising from Insurance Policies concluded before the suspension of business or revocation of the license effective and the Company shall be liable for the same.
Relicensing the Company If the license revocation reason is removed, the Company may, within a period not exceeding one year from the date on which the revocation decision is issued, submit an application to the CBUAE for licensing, accompanied by the documents proving the removal of the license revocation reason. The Board may issue its decision on approval or rejection, provided that the decision is reasoned, and the CBUAE shall inform the Company and the relevant authorities of the decision.
Rejection of Relicensing Application
1. Where the Board rejects the relicensing application for all types of insurance, or if the Company fails to submit a relicensing application, within the time limit referred to in Article (47) above, the Company shall go into liquidation within a period not exceeding one month from the date of expiry of such period or from the date of being notified of the rejection decision. If the Company fails to go into liquidation, it shall be liquidated in accordance with the provisions of this Decree-Law.
2. The Company shall be delicensed if a liquidation decision is issued against pursuant to the provisions of this Decree-Law, a final court judgement of its liquidation is rendered or is declared bankrupt under the legislation in force in this regard.
Chapter Eleven Foreign Insurance Companies and Representation Offices of Foreign Insurance Companies
Branch of Foreign Insurance Company
1. A foreign Insurance Company's branch shall appoint a manager to manage the branch, who is authorized by a document attested by the relevant authorities to exercise all the powers necessary to manage such branch, including:
a. Issuing Insurance Policies and annexes thereof and paying the compensations arising therefrom;
b. Representing the Company's branch before the CBUAE, competent court and other relevant authorities; and
c. Receiving communications, notices and all correspondence served to the Company.
2. Before the engagement in Insurance Business, a foreign Insurance Company's branch shall submit an application to the CBUAE for licensing the branch; provided that the manager's appointment decision and the document referred to in Clause (1) above shall be attached to the application.
3. The foreign Insurance Company's branch shall notify the CBUAE of the Authorized Manager's name within one month from his appointment date, and shall appoint a substitute within one month from the date on which position becomes vacant.
Bank Guarantee The foreign Insurance Company's branch shall submit an irrevocable letter of bank guarantee in favor of the CBUAE, in an amount not less than (AED 100,000,000) one hundred million dirhams in case of engagement in insurance activity, and an amount not less than (AED 250,000,000) two hundred fifty million dirhams in case of engagement in reinsurance activity, in accordance with the instructions issued by the Board in this regard.
Final Account The Foreign Insurance Company's branch shall provide the CBUAE with the total final account, and shall publish it in two local daily newspapers, one of which is published in Arabic.
Representation Offices of Foreign Insurance Companies
1. Representation offices of foreign Insurance Companies may not carry out their activities related to insurance in the State before obtaining the relevant license from the CBUAE.
2. the CBUAE shall issue a resolution regulating the functions of such offices.
3. The license shall be either accepted or rejected by virtue of a resolution of the Board, and the CBUAE shall so notify the relevant authorities.
Chapter Twelve Insurance Companies of Persons and Fund Accumulation Operations
Policies Issued by Insurance Companies The Companies engaged in insurance business for persons and fund accumulation operations may not distinguish between the policies issued of the same type; in terms of insurance rates, the amount of profits distributed to policyholders or other requirements, unless such distinguishment is generated from a difference in life chances for policies where the lifetime has an effect, except for:
1. Reinsurance policies;
2. Insurance Policies of amounts that enjoy certain discounts according to the price lists communicated to the CBUAE; and
3. Insurance Policies that include special conditions on the life of members of a single family or a group of individuals related by a single profession/job or any other social bond.
Insurance Policy Rate Discount Based on the Company's request, the CBUAE may agree to issue policies at discounts less the normal prices if there are reasons that justify the same.
Assessment of Value of Liabilities The Companies that engage in the insurance of persons and fund accumulation operations shall examine the financial position of this type and assess the value of its obligations at least once every (3) three years by an Actuary, as of the date of its engagement in business. This assessment shall cover all insurance operations concluded by the Company inside and outside the State separately. If the activity is carried out by a branch of a foreign Company, the assessment shall be limited to the operations whose contracts were concluded in the State or carried out therein.
Examination of Financial Position The assessment referred to in Article (55) above shall be made whenever the Company is desirous to examine its financial position to determine the percentages of profits to be distributed to shareholders or policyholders, or whenever it is desirous to announce this position. the CBUAE may request that this assessment be made at any time before (3) three years; provided that a period of not less than one year has elapsed from the date of the last examination.