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Like most other countries a life insurance agency in UAE is regulated by the law of the land. What the most relevant provisions of the laws are? Ordinarily in a country the insurance processes and activities of a life insurance agency is regulated under specific laws of the land and United Arab Emirates is no exception to this. Activities of insurance agents and companies in the country are regulated by the UAE Insurance Companies and Agents Laws that originally came into force in the year 1984. Applicability of Law According to provisions laid down in article 2 of the Act; it is applicable in the entire country. But the unique feature is that it equally applicable to both indigenous and overseas service provider companies. Defining Insurance Article 3 of the Act defines insurance as- • A contract under which the companies dealing with life insurance UAE pays compensation to the clients covered under any of their insurance plans. • These plans are designed to compensate cover the damages sustained by the client in respect of their person or properties in any manner. • Such incidences should be covered under the terms and conditions laid down in the contract. Type of Life Insurance Coverage Several types of insurance coverage are provided by the insurance companies and they are recognized by the law of the land. Article 3 of the Act lists out the insurances as follows- • Life insurance that is all comprehensive and includes all other types of insurances. • Saving and accumulation of funds where companies pay assured sum on maturity in lieu of payment of fixed premium; monthly or annual. • Accident & Liability Insurance. • Fire insurance. • Transport Insurance that covers land, sea, as well as air transport. • All other types of insurances that covers risk other than those specified above. Monitoring & Supervision Provisions have been made for the monitoring and supervision of companies as well as life insurance agents in United Arab Emirates under Article 4 of the Act. Following authorities for such purposes as prescribed under the Act are – • Insurance Higher Committee as the supreme authority to regulate insurance procedures in the country. Representatives from Federation of Chambers of Commerce as well as concerned authorities of UAE are members in the Committee. • Under Article 5 of the Act provisions have been made for setting up Supervisory Committee to regulate activities of companies and agents in member emirates. General Provisions Insurance benefits abroad have been expressly prohibited under Article 6 of the Act. Thus they are confined to local boundaries of UAE for all purposes. Also under Article 7 of the Act, the Ministry of Economy and Commerce will release an annual report on the activities of insurance companies and agents in UAE. Companies are expressly prohibited under Article 8 from carrying out insurance activities in United Arab Emirates without being duly registered with the authorities under the Act. It is also mandatory for all foreign companies operating in UAE to have some local agents for carrying out their operations. Insurance companies working in the country shall operate as public share holding companies and at the same time their entire capital shall be owned by the UAE national shareholder. Are you searching for Life Insurance Agents in UAE? ArabianLifeInsurance.com is the best life insurance company in Dubai.
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