The Insurance Authority is currently preparing a new regulation to organize operations of the insurance brokers in the framework of its keenness to reorganize insurance market. According to H.E Fatima Mohammed Ishaq Al Awadi, the number of insurance brokers operating in the market at present is (170) brokers after writing off (74) brokers last year due to failure to adjust their status to be in line with the resolution of the Minister of Economy of December 25, 2009.
Al Awadi said to Al-Khaleej newspaper, “The Insurance Authority Board of directors’ resolution to stop granting the brokers new licenses is valid still and that the Insurance Authority sent periodical circulars to the insurance companies wary them not to deal with the written off or unregistered brokers and also called the public to ensure that the broker they intend to work with is licensed by the Insurance Authority in order to avoid exposing their interests to risks, reminding that the insurance companies are not authorized to deal with unregistered brokers.
In the same context, Al Awadi assured that the Insurance Authority’s inspectors arrested lately some individuals carrying out insurance brokerage operations without having licenses issued by the Insurance Authority and taken the suitable legal procedures against them affirming the Insurance Authority keenness to prohibit the malpractices in the insurance sector in collaboration with the local economic directorates through inspection of individuals and offices following receipt of a tip off that they are carrying out the operations without obtaining the necessary license.
Al-Khaleej newspaper received several complaints from the residents of some Emirates about some written off brokers going on carrying out their operation despite the writing off decision issued against them in addition to existence of brokers unregistered with the Insurance Authority offering different type of insurance policies in culprit with some companies operating in the market-the matter was confirmed by the inspection campaigns conducted by the Insurance Authority for the purpose.
AL Awadi stressed that the Insurance Authority as an entity entrusted with organization of UAE insurance sector and with protection of the rights of the policyholders, the insurance companies, and the professions related to this work or activity will not allow them to conduct the profession of insurance brokerage as they bear no liabilities and maintain no guarantee that safe guard the rights of both the policyholders and the insurance companies.
She emphasized that the action of these written off brokers or of these entities unregistered in fact in the register of the insurance brokers is a violation of the provisions of Federal Law No (6) of 2007 on Establishment of the Insurance Authority and Organization of the Insurance Operations and also the Ministerial Decree No (543) of 2006 on Organization of Conducting the Profession of the Insurance Brokers.
Accordingly, the Deputy Director General said, “ Article (70) of the Federal Law No 6 of 2007 decreed that the written off brokers or those unregistered as insurance brokers licensed to conduct the profession and also Article (100) of the law determined the violators be punished by imposing a fine not less than AED 50 000/- and not exceeding AED 1,000,000.