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