The Insurance Authority organized a series of lectures on the concept of insurance in the Majalis of Sharjah during the holy month of Ramadan.
The lectures, which were given by experts and specialists from the Insurance Authority, included six Majalis in the Emirate of Sharjah, namely the Majlis Dibba Al-Hasn, Mughaidar, Subaiha, Wasit, Muwaileh and Khalidiya for men . In addition to, Mahalis Dibba Al Hosn, Wasit and Khalidiya for women.
The lectures talked about the functions and competences of the Insurance Authority, which was established by virtue of the Federal Law No. (6) of 2007, aiming to regulate and supervise the insurance sector in the United Arab Emirates to ensurethe provision of a favorable climate for its development and promote the role of the insurance industry to indemnify persons, property and liabilities against risks. As well as accumulating, developing and investing the national savings to sustain the economic development of the State, encourage fair and effective competition, provide the best insurance services with technically sound premiums and adequate coverages, and Emiratize jobs in the insurance markets.
The Law of the establishment has set several tasks for the Authority. The most important of which are: protecting the rights of the insured and beneficiaries of insurance, supervising the solvency of companies and providing adequate insurance cover to protect these rights. Moreover, working to raise the efficiency of companies, its commitment to the rules and code of conduct of the profession in order to increase its ability to provide the best services to the beneficiaries of the insurance operations and to achieve positive and healthy competition between companies. Also, the proposition of programs and plans to develop the insurance sector in all aspects and enhancing insurance awareness, preparing and disseminating studies and researches relevant to the insurance operations.
The main indicators of the UAE insurance sector were reviewed, showing that the written premiums of the sector amounted to (AED 44.8) billion and investments amounted to (AED 60.7) billion in 2017. The UAE also occupies the first position on the main insurance indicators at the levels of the Arab countries and the region in terms of written premiums and premium per capita. In addition, the UAE is ranked the first among the emerging markets in the insurance penetration rate.
Concerning the concept of insurance, the lectures explained that insurance is a process under which one of the parties "the Insurer" undertakes to provide a guarantee of compensation to another party "the Insured" for the loss that may be incurred by the insured in the event of a risk happened.
The objectives of insurance are represented in several points. Most importantly, peace of mind, finding a solvent entity capable of accepting risks and paying compensations, providing economic protection to the members of the society, and providing protection to the national economy.
Additionally,the lectures addressed to the Unified Motor Vehicle Insurance Policy, which was issued by the Insurance Authority in 2016. .The main objective of the new policy is to address the problems contained in the old policy issued in 1987, by adding new benefits in favor of customers and the sector. As well as, enhancing the positive competition between companies through issuing tariff rate regulations for motor vehicle insurance. This competition will encourage companies to provide best services at competitive rates, which are not merely based on prices. Ultimately, leading to protect companies and the insured against the policy of burning prices and speculation.
The most important of the benefits contained in the Unified Motor Vehicle Insurance Policy are; the expansion of the insurance cover in the third party insurance policy, adopting the loss of benefit principle. Furthermore, in the third party liability insurance, the insurance company is liable repair the damaged vehicle in the agency repair shops, in case the accident happened during the first year of the vehicle registration or being on the road. The policy has resolved the dispute between the insurance company and the owner of the damaged vehicle regarding the compensation for the damages or determining the market value of the motor vehicle. Moreover, the policy has increase the maximum amount of compensation for material damages in the third liability insurance per accident.
In addition, the lectures discussed the basis of repairing the motor vehicle, the mechanism for cash compensation and resolving disputes, if any. As well as, displaying a series of awareness films produced by the Authority in various areas of insurance.