Council reviews the study conducted on the vehicle insurance regulation
application evaluation to ensure the interests of policyholders
Abu Dhabi, on 21 March 2017
The Board of Directors of the Insurance
Authority, during its meeting chaired by H. E. Eng. Sultan bin Saeed Al
Mansouri, Minister of Economy and Chairman of the Board of Directors, endorsed
the Regulations on Licensing and Registering of Actuaries and Regulation of
During the meeting, the Board of Directors discussed
many issues and topics involving the IA and the local insurance market,
including the application of the Regulation Concerning Unified Motor Vehicle
Insurance Policies, draft laws and instructions that are currently prepared to
support the organization of the domestic insurance market and to promote
competitiveness and the development of mechanisms for the protection of
policyholders and companies, ensuring the continued growth of the national
The meeting was attended by HE Mr. Ibrahim
Obaid Al Zaabi, Director General of Insurance Authority, the Directors, i.e. HE
Humaid Bin Butti Al Muhairi, HE Mariam Butti Al Suwaidi, HE Mariam Mohammad Amiri, Mr. Hamad Harith Al
Midfa, Mr. Hamad Saif al Mansouri, Mr. Ahmed Al Qubaisi and Mr. Abdel Wahab Mohammed Khalfan
Moreover, the Board of Directors, during such
meeting, reviewed the evaluation currently conducted by on the application of
the Regulation Concerning Unified Motor Vehicle Insurance Policies against
Loss, Damage and Civil Liability and the Regulation of Vehicle Insurance Policy
Rates, which entered into force in early 2017.
The Board of Directors stressed the importance
of continuous evaluation of applying the Regulation Concerning Unified Motor
Vehicle Insurance Policies and examine the situation of the vehicle insurance market
of all aspects, to ensure the interests of policyholders and the domestic
market, and to develop the control system at the IA to ensure the perfect
application of the benefits of the new privileges included in the Regulation
Concerning Unified Motor Vehicle Insurance Policies and maintain the rights of
policyholders and beneficiaries.
The Board of Directors affirmed that it is
necessary for insurance companies and insurance-related professions to promote
fair competition, adopt the sound technical underwriting standards, and
determine the prices of insurance in appropriateness with the risk assessment,
in addition to provide customers with information about the nature of the
insurance product, including benefits and requirements of coverage.
The Board of Directors stressed avoiding the
use of the benefits contained in the new insurance policies as a means by those
who work in the domestic insurance market to increase the prices of vehicles insurance
policies, emphasizing that the companies shall grade the prices of insurance
policies from the minimum limit to maximum limit according to the experience of
the company with its customers and the number of incidents sustained by the customers.
The Board of Directors of the Insurance Authority,
during the meeting, endorsed the Regulations on Licensing and Registering of
Actuaries and Regulation of their Operations, stipulating that the actuary is
the natural or legal person licensed to practice the profession of actuary by
the IA and registered in the Register of Actuaries held with the IA.
No person shall practice the profession of
actuary in insurance business in the State, unless he is licensed by the IA and
registered in the Register of Actuaries and the license is annually renewed in
accordance with the provisions of this Regulation, excluding the persons who,
under the responsibility of the actuary, perform works supporting the actuary
that is licensed and registered in the IA’s Register of Actuaries, provided
that none of them shall sign the actuarial reports or certificates or any
document related to the actuarial works or give any actuarial advice.
Actuary may combine insurance operations and
other fields that may be conducted by the Actuary due to the nature thereof.
Actuary may not combine between acting as an Actuary on one hand and as an
insurance agent, insurance consultant, loss surveyor and adjustor, or any other
insurance-related jobs on the other hand. Actuary may not combine between
acting as an Actuary and any other position or job in the Company or any
related company. The Company may not assign any person to practice actuarial
operations, unless he is licensed and registered in the Register in accordance
with the provisions of this Regulation.