MoE issues resolution to regulate market

Minister of Economy and Board Chairman of the Insurance Authority Sultan bin Saeed Al Mansouri has issued a resolution on the rules and ethics of the insurance sector.

Deputy Director-General of the Insurance Authority Fatima Ishaq Al Awadhi said the resolution is an important step to regulate the UAE insurance market, boost the policy of competitiveness and develop the performance of insurance companies.

Al Awadhi said it is important that customers should receive written, clear and understandable information, and those giving the information should have sufficient technical knowledge and should have the ability to give information to the customers and to receive information from them.

Before signing a contract, a customer should have honest advice from the insurance company on the size of the coverage, she said.

Al Awadhi said the relation between the insurance company and the customer should be based on goodwill.

She said the rules will establish the insurance market on a technically sound, economically and socially just base where confidence prevails between customers and insurance companies.

Al Awadhi said insurance companies should ensure that their practices meet legal provisions and they should work in accordance with the principle of absolute goodwill and should adopt the principle of disclosure and transparency in the insurance market.

Companies should not refrain from accepting any insurance request, renewing the insurance policy or discriminate between the insured in terms of prices, conditions and privileges, unless this is based on technical reasons or on the company's experience with the customer, said Al Awadhi. She said companies should not reduce prices below a certain level and should abide by the prices set by the Insurance Authority. A company should inform the authority of the prices it intends to enforce.

The resolution stipulated that the instructions shall replace the rules of the regulation of the insurance companies' work, issued in accordance with the Ministerial Resolution No 296 of 2004 by the Minister of Economy. The new rules shall be valid three months after the date of publishing in the Official Gazette.

 

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