Wednesday, October 12, 2011
His Excellency Eng. Sultan Bin Saeed
Al-Mansouri, Minister of Economy and Chairman of the Board of Directors of the
Insurance Authority, asserted that the energy insurance, especially of nuclear
power centers, is an important issue for the countries that established or
tended to establish nuclear power centers for peaceful purposes.
This was stated as part of his
speech in the opening of the forum of the Co-ordination Commission for Gulf
Insurance & Reinsurance Companies held at Abu Dhabi today which was given
on his behalf by H.E. Fatima Mohammed Ishaq Al Awadi, Deputy Director General
of the IA, in the presence of many insurance experts from the Gulf, Arab,
European, and Asian countries in addition to a selection of researchers and
underwriters of the alternative energy insurance of the leading international
insurance companies and the global nuclear power insurance pool.
He said that the Arab Gulf region
looks attentively at the insurance experiences adopted by some of the European
and American countries concerning the provision of insurance coverage for such
risks of special nature.
He explained that in view of the
disastrous feature of the nuclear risks, such risks are treated in the
insurance aspect through the formation of polls. He indicated that the
insurance aspects addressed by the Forum gain a special and increasing
importance due to the participants' experience and competence in this
He reviewed some of the new legal
regulations adopted by the IA in the UAE which could form a foundation for a
common insurance legal regulation at the Gulf level, referring to three models;
the regulations pertaining to Takaful insurance, the rules of insurance policy
marketing by the banks, and the organization of the operations of health
insurance claims management companies.
He explained that the IA issued
Takaful insurance regulations number 4 of 2010 which is the first of its kind
at the Arab level and one of the most comprehensive regulations at the Islamic
level. When these regulations were issued, they adopted Shariah-compatible
rules and stipulated that Takaful insurance must be practiced by specialized
insurance companies. In other words, the regulations did not allow the
traditional insurance companies to practice Takaful insurance through an
“Islamic Counter”. Moreover, the relationship between the subscribers/ the
insured/ and Takaful insurance companies was established on the basis of Wakala
or Wakala and Mudarabah combined based on the best Islamic legal opinions.
He added that pursuant to the
regulations, the shareholders’ fund was obliged to provide a goodwill loan to
the subscribers’ fund with a maximum limit equaling the total of shareholders’
rights to protect the subscribers. The regulations also stated that subscribers
may be invited to attend the general meetings of the shareholders and they gave
the subscribers the right of discussion although they do not have the voting right.
In addition, the regulations introduced a Supreme Fatwa and Shariah Control
Committee in line of the IA in addition to the Shariah Control committees at
the level of the companies and they obliged the companies to create a Zakat
Fund at the level of the companies. Further, the regulations included many
other organizational provisions.
The Minister of Economy affirmed
that the UAE regulations pertaining to the Takaful insurance are valid in
principle to form a platform for a unified Gulf regulation.
He said the rules for the marketing
of insurance policies by the banks were prepared and that he hopes the
pertaining instructions will be issued during the present year.
He explained that while the
experiences of the developed countries are reviewed, the IA has adopted rules
and provisions compatible with the economic, financial, and legal environment
of the UAE which is almost similar to that of the Arab Gulf regions. He said
“We believe that the UAE regulation is valid to serve as the foundation for a
common Gulf insurance regulation”.
ansouri said that the
relationship between the bank and the insurance company pursuant to the UAE
regulations is a mere marketing relationship that does not lead the bank to act
as an insurance agent, broker, or consultant, which serves the best interest of
all three parties to such transactions; namely the insured, the bank clients,
the bank itself and the insurance company.
He noted the importance of this
principle when the insured risk occurs or when the insurance company refuses to
admit its responsibility for any valid legal reason. He affirmed that the
regulations determined certain types and classes of insurance operations that
can be transacted with the bank, and where the bank may not market insurance
policies to persons other than its clients and where it is impermissible to
authorize the bank with the power to issue insurance policies, settle claims,
or pay compensations.
Pertaining to the organization of
the operations of companies of health insurance claim management, He explained
that the IA issued instructions number 9 of 2011 as to the organization of the
operations of such companies. Within the framework of such instructions, rules
were set to protect the best interest of all relevant parties, namely, the insured/recipients
of health services, hospitals, physicians, and the insurance companies.
He added that such regulations
include many other provisions aiming at organizing the relationship from the
legal and financial aspects. He noted that in view of the Gulf directions
toward making health insurance a part of the compulsory insurances, the
organization of such important aspects of the health insurance operations gains
a special importance.
He said he hopes that such models of
the legal regulations become a part of the agenda of the Co-ordination
Commission for Gulf Insurance & Reinsurance Companies when it adopts a
direction toward the actual coordination and targeted standardization in the
organization of the insurance operations at the Gulf level.
On his part, Eng. Saleh bin Rashed
Al-Zaheri, President of the Executive Council of the Co-ordination Commission
for Gulf Insurance & Reinsurance Companies affirmed the importance of the
united action between the Arab Gulf states to organize Gulf insurance laws that
contribute to handling the various challenges facing the insurance sector at
the regional and international levels.
-Zaheri noted that it is important
for the Gulf insurance companies to keep up with the economic updates and
technological and technical developments, including the global trend toward the
peaceful nuclear energy to secure demand on the electrical energy.
Mr. Abdel Khaleq Raouf,
Secretary-General of the General Arab Insurance Federation gave a speech that
concentrated on the developments seen in the Arab insurance markets and their
contribution to boosting the economic growth in the Arab countries.
The Forum organized by the
Co-ordination Commission for Gulf Insurance & Reinsurance Companies in
cooperation with Emirates Insurance Association under the patronage of H. E.
Eng. Sultan Bin Saeed Al-Mansouri, Minister of Economy and Chairman of the
Board of Directors of the Insurance Authority, includes many two-day seminars
which address many important technical and insurance issues and their influence
on the insurance industry, including finding solutions for the financing of
operational risks of the available nuclear energy, reaching a peaceful nuclear
energy program, developing solutions for alternative energy, seeking to help
the clients in the region and providing them with solutions for the financing
risks, and partnering to manage and alleviate such risks.
Further, the light will be shed on
the alternative energies and their different types, especially the nuclear
energy. Moreover, some of the international experiences and researches in
renewable nuclear energy will be reviewed.