The Federal National Council sanction a draft amending some of the provisions of the law establishing the Insurance Authority
Al Mansouri: Amendments in line with the Directors of the leadership and commensurate with UAE competitive levels and development achievements
The Federal National Council (FNC) sanctioned during its last session on Tuesday last a draft to amend some of the provisions of the Federal Law No.6 on Establishment of the Insurance Authority and Organization of the Insurance Operations that aims to protect the rights of the policyholders by securing non-conflict of interests.
H.E. Eng. Sultan Bin Saeed Al Mansouri, Minister of Economy, Chairman of the Insurance Authority said that the new amendments come in the framework of the directives of the judicious leadership of H.H. Sheikh Khalifa Bin Zayed Al Nahyan, the President of UAE (May Allah guard Him), and H.H. Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President, Prime Minister, Ruler of Dubai (May Allah guard Him) to develop the laws and rules to suit the comprehensive developmental achievements attained by UAE and the quantum leap witnessed in the regional and international levels and to comply with the best laws and standards applicable worldwide.
H.E. indicated that the amendments included Article 9 of the Law establishing the Insurance Authority in order to commensurate with the Federal Decree No. 6 of 2011 on Organization of the Boards of Directors, Secretariats, Committees in the Federal Government and the Ministerial Decree No. 29 of 2011 that set down measures to govern these boards in order to avoid conflict of interests and attain more transparency in addition to attaining harmony in the amendments with the State joining several regional and international organizations operating in the insurance sector in the member countries by encouraging cooperation, enhancing transparency and sanctioning international standards.
The amending draft of Article 9 of the Law establishing the Insurance Authority provided for the Insurance Authority having a board of directors formed of a chairman and a number of members to be appointed by a Cabinet of Minister’s Decree in a condition that the candidates entertain no conflict of interest throughout their membership tenure. The formation Decree will determine their number, numerations and tenure term.
The amendments as well included Article 19 of the Law establishing the Insurance Authority in order to concert with requisites of the specialized government bodies.
H.E. Eng. Sultan Bin Saeed Al Mansouri, Minister of Economy, Chairman of the Insurance Authority said that amendments into the context of these Articles aim at protecting the rights of the policyholders and establishing UAE insurance market to the most modern principle and best standards that take into consideration all the legal, technical and financial aspects of the insurance sector.
H.E. assured that the Insurance Authority has gone a long way in developing and organizing UAE insurance sector in the fields of legislations, competition and protection of the policyholders and the companies and is going on in accomplishing the legislations and laws that will cope with UAE developmental uprising and comply with the best international standards in this respect.
H.E. presented his thanks and expressed his appreciation to the Chairman of the Federal National Council and the members who contributed by their discussions and arguments in endorsing the amendments into the law establishing the Insurance Authority in its advanced form that will lead to development of the institutions of the State and enhance the parade of building and growth in UAE.
H.E. indicated that UAE economy entertains great vividness and higher competivity whether as to amending the laws or formulating new laws that concert with the developmental growth movement in UAE and cope with the international development in different fields; a matter that will enhance the national economy capacities to face international crisis and proves as well its credibility and sturdily in facing the regional changes.
H.E. recalled that the Insurance Authority attained during the short years of its inception works and achievements that participated in adding qualitative value to UAE insurance sector and said, “The rules and regulation issued in the field of legal, technical, financial and accounting fields of UAE insurance market and in other aspects of Emiratization and training are deemed qualitative strides that participated in enhancing the insurance market capacities and increasing its share in the national economy.
H.E indicated that these qualitative strides taken by the Insurance Authority have their positive reflections on the indicators of the sector specially, in respect of the indicators of the underwritten premiums which surged from AED 3.955 billion in 2002 to AED 22.048 billion in 2010 and the funds invested in the insurance sectors which surged from AED 7.233 billion in 2001 to AED 27.583 billion in 2010.
H.E. assured that the next period will witness further achievements in the Insurance Authority and the insurance sector as well coping with the incremental growth of the national economy and the accelerating comprehensive development in UAE development of the insurance market.