Al Mansouri: The new regulation contributes to raising the performance of the sector and keeps pace with economic and social variables.

: 9/28/2016

Al Mansouri: The new regulation contributes to raising the performance of the sector and keeps pace with economic and social variables.

 

Abu Dhabi, on September 28, 2016

 

HE Engineer Sultan bin Saeed Al Mansouri, Minister of Economy, Chairman of the Insurance Authority, confirmed that the adoption of the unified regulation made for the vehicle insurance policy against civil liability and the vehicle insurance policy against loss and damage, is an important and specific shift on the development of organizational bases and technical rules for developing the performance of  the UAE insurance market, vehicle insurance, and the protection of the policyholders’ rights due to their terms and conditions in line with the competitive level of the UAE economy and to keep pace with the international best practices prevailing in the insurance industry.

 

“In a press statement issued today (Wednesday) on the occasion of the Board of Directors’ adoption of the regulation of unifying the vehicle insurance policies, it is worth noting that the issuance of this regulation comes in the context of the modernization and development approach adopted by the Insurance Authority as to the laws, regulations and instructions governing the activities of the insurance sector in the UAE. The issuance also comes inlight of the economic and social developments taking place in the UAE, national economic growth, and increasing economic and financial variables in the world. The new regulation supports the legislative base of the insurance sector of the UAE and entities operating therein it, according to legal, technical, and financial strong grounds. It increases the sector’s competitiveness at the regional and international levels in accordance with the best prevailing international practices,” Al Mansouri added.

 

“The issuance of this unified regulation comes after more than 27 years of work using the two vehicle insurance policies issued in 1987, and after several amendments to them during that long period,” Al Mansouri pointed out.

 

“The regulation contains many provisions that shall be considered by the company, raising a number of problems in the application. The regulation is a binding legal text that does not in any way prejudice the provisions of the insurance policies, with the possibility of executing an agreement inuring to the benefit of the insured,” Al Mansouri explained.

 

“Vehicle insurance is differentiated according to the type of insurance, through separate insurance policies, the first of which relates to the Civil Liability (Third Party), to the extent that it will be mandatory under the traffic law. The second is one related to the (supplementary or comprehensive) loss and damage; it is optional for those who want to cover their vehicle. This replaces what was called comprehensive insurance in a single insurance policy, including the two types of vehicle insurance,” Al Mansouri asserted.

 

“The unified regulation of the vehicle insurance policy against civil liability and the vehicle insurance policy against loss and damage contains numerous benefits for policyholders and the domestic market, noting that same was not present in previous two insurance policies,” Al Mansouri confirmed.

 

“The regulation protects the rights of policyholders and shareholders of insurance companies alike, and protects the companies themselves from risks they may be exposed to in the future. Thus, the regulation develops technical bases and rules necessary to promote the establishment of modern and sophisticated regulatory bases for the insurance market of UAE in accordance with best international practices. It further enables the insurance sector to increase its contribution to GDP and support the growth in the national economy in all fields, in accordance with sound and strong grounds,” Al Mansouri said.

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