Cabinet Resolution 42/2009 has been issued to increase the minimum paid-up share capital requirements for insurance and reinsurance companies. The resolution prescribes that UAE or Gulf Cooperation Council (GCC) national individuals, or wholly owned UAE or GCC national legal entities, must hold at least 75% of the share capital of an insurance company which is established in the United Arab Emirates.
According to a recent Federal Supreme Court judgment, insurers would do well to ensure that their adjustment of a claim requires the insured to produce suitable evidence to support the amounts claimed and losses sustained, in order to enhance the prospects of a successful recovery from a third party.
When a non-delivery of cargo claim arises, insurers must be quick to trace the cargo and obtain evidence admissible in the courts. Two recent judgments provide an interesting insight into marine insurance litigation in the United Arab Emirates.
A recent ministerial decision makes changes to UAE laws in relation to the regulation of insurance brokers and their activities, with particular significance for the life insurance industry.
According to a recent ministerial decision, any insurance broker who deals in (or offers) the products of any insurance company that is not registered with the ministry risks having his or her registration cancelled.
Insurers and brokers seeking to write or place business in the United Arab Emirates should ensure that they comply with new legislative changes. While the changes do not go as far as to attribute liability to brokers for unpaid premiums, they do impose various obligations on both insurers and brokers.