Insurance Law in the UAE

The term insurance-law-in-the-UAE and many of us hear this term and ask about it, and why does the state impose insurance for all individuals working for it, and even impose it on companies and require them to ensure their employees, and this ordinary insurance that serves the insurer when he retires and serves his family when he dies, and in the normal logic, insurance is part Money that is deducted from every salary that the employee receives during his periods of work in the state or company and is kept in the insurance company and the amounts are not released except in the event of death or retirement.

In this article, we will discuss the subject of the insurance law in the UAE, the Insurance Authority, and its functions, in addition to the provisions for insurance companies and many other details that you can learn about by reading the article.

Establishment of the Insurance Authority in the Emirates:

Based on Decision No. 6 of the President of the State, Khalifa bin Zayed bin Sultan Al Nihan, in which the law regarding the establishment of the Insurance Authority in the United Arab Emirates was decided. At the outset, the specialists in this authority were defined, firstly the state of the United Arab Emirates, secondly the Ministry, the Ministry The economy is headed by the Minister of Economy, the authority is called the Insurance Authority, the board is the authority’s board of directors, the president is the chairman of the board, and its general manager is called the director-general of the authority, and the company is the insurance company that was established in the state. Through a branch or through an insurance agent.

The insurer and means the insurance company, whether the institution is in the state or a foreign one that has been licensed to carry out insurance business. As for the insured, he is the same person who concluded this contract with the company, the insurance contract, and for the insurance agent, he is the person approved by the company to carry out its work on its behalf. or acting on behalf of one of its branches, and the insurance trustees must be present, or what is called the insurance contract, which is the document concluded between the insured and the insured and includes the conditions checked, the obligations and rights of the insured and the insurance itself.

The reinsurer is the company that works to reinsure the institution, whether in the country or abroad. The insurance broker is the person authorized to mediate in insurance operations or return it, and he is independently between the applicant for insurance or the applicant for reinsurance, and he receives the return for his work a commission from the insurance company, Here comes the expert for detection and estimation of the damage, and he is the one whose job it is to detect and estimate any accidental damage in the insurance.

The insurance consultant whose job is to study the insurance requirements of his clients and provide them with advice regarding the appropriate insurance cover for them and also helps them in preparing insurance requirements and gets paid for what he does from his clients. The actuary is the person whose task is to estimate the value of insurance contracts and all The documents and their accounts. As for the register, it means the register of insurance companies or their agents, the beneficiary, who is the person who obtained the rights of the insurance contract, and these rights are considered legal in insurance in the UAE.

These are the most prominent names mentioned in the UAE law regarding insurance.

Insurance result in the UAE:

As soon as the insurance contract is signed, the insurer is obligated to pay the insured or the beneficiary a sum of money, or provide a salary, or compensate with another financial compensation in the event of an accident or the insured danger being realized, and this is all in return for the premiums or financial payments made by the insured to the insured.

The insurer must give the compensation stipulated in the insurance contract to the insured as soon as the accident occurred or the insured danger occurred, and here the insurer shall legally replace the insured in terms of rights and obligations

One of the company’s obligations is to conclude insurance contracts for all vehicles that are licensed to drive in the country, when the stakeholders request it, and the executive regulations in it that determine insurance prices and take into account the risks and their gravity.

These are duties stipulated in the UAE Insurance Law.

Insurance business in the UAE:

In the UAE insurance law, the direct insurance business is divided into three sections:

  • Insurance of persons and operations that make up funds
  • properties Insurance
  • Liability Insurance

Let us separate here the Insurance Authority in the Insurance Law in the Emirates and its objectives. We can say that the Insurance Authority in the Insurance Law in the Emirates enjoys a legal personality and has financial and administrative independence and has an independent budget that is considered attached to the state budget and in this capacity, it undertakes all actions and actions that lead to In order to achieve its purpose and the tasks assigned to it in accordance with the provisions of the insurance law in the Emirates, and it is considered subordinate to the Minister, its headquarters in Abu Dhabi is the main headquarters, and its branches may be established according to what the interest requires, but based on a decision of the Council.

Among the tasks of this authority is the regulation and supervision of the insurance sector, and it ensures the provision of an appropriate atmosphere for the development and strengthening of the role of insurance in guaranteeing people and property, as well as responsibilities against any risks in order to protect the national economy and also works to accumulate, develop and invest national savings to be automatically performed By supporting economic development in the country, this authority works to provide insurance services at competitive prices and works to localize jobs in the insurance market.

The duties of the insurance authority in the UAE law:

  •  It works to protect the rights of the insured and those who benefit from the insurance business, and it monitors the solvency of the insured companies in order to provide adequate insurance cover to protect their rights.
  • It raises the performance of insurance companies and increases their efficiency and works to obligate them to professional rules and ethics in order to increase their ability to provide the best services to insurance beneficiaries and works to create a positive competitive atmosphere among them.
  • It is working to provide distinguished human cadres qualified to practice insurance business, and it has established an institute for this, and all of this was done jointly and in cooperation with the Emirates Insurance Association in accordance with the applicable legislative provisions.
  • It proposes programs and plans in order to develop the insurance sector in all fields and works to increase insurance awareness and conducts and prepares insurance studies and research.
  • It strengthens ties of cooperation and solidarity with the bodies to regulate the insurance sector, whether at the Arab or international levels.
  • It receives the founding applications related to the opening of branches and offices that represent insurance companies and issues the necessary licenses to them.
  • You specify all risks for which insurance is mandatory.

And many tasks related to the insurance sector in the insurance law in the United Arab Emirates.

And the authority has annual fees that it receives in exchange for supervision and control, and the council has the right to obtain other fees that are proposed by the council and are issued by a decision of the Minister of the Council of Ministers.

Its revenues, i.e. the Authority’s revenues, are from:

  • Amounts allocated by the government to the authority.
  • Fees that the authority collects
  • Executive abundance from the budget for previous years.
  • Any gifts, grants, donations, or assistance accepted by the Board and which are in line with the objectives of the Authority
  • Other resources were approved by the Board at the time.

The Authority’s fiscal year always begins on the first of January and ends on the thirty-first of December of each year. As for what we say about the fiscal year, it means that the beginning from the date of enforcement of the provisions of the law and its end also on the thirty-first of December for the following year.

It is a well-known consideration that the Authority’s funds are considered public funds, and the Authority has advantages, including exemptions and facilities, like ministries and government departments, with advantages. The auditing of accounts is carried out by one of the registered auditors from among the working auditors.

The authority keeps reserves equivalent to twice the total expenditures in the annual budget, and the excess amounts are transferred directly to the state’s public treasury.

The insured in the UAE insurance law:

All persons authorized and registered with the Authority shall engage in insurance or reinsurance business:

  • public shareholding companies
  • Any branch of a foreign insurance company
  • insurance agent

Prior approval must be obtained from the Board before any insurance company is incorporated in the country or even a branch of a foreign insurance company is opened or if it practices as an insurance agent.

All financial years for companies begin on the first of January and end on the 31st of December of each year. As for their first financial year, it begins on the date of its incorporation and ends on the 31st of December of the following year.

The capital may not be less than the minimum stipulated in the Insurance Law in the Emirates.

If an insurance contract is made by an unlicensed or restricted company, then it is void and the injured party has the right to claim compensation for the invalidity because it is by virtue of the aggrieved party.

Special provisions for insurance companies in the UAE:


  • If the company combines the operations of insurance of persons and the formation of funds, and at the same time insurance of property and liabilities, this is not permissible.
  • If companies practice two types of insurance stipulated in the UAE Insurance Law, they must work to amend their positions within five years from the date of its implementation in this law, and this period may be extended, but by a decision of the Council of Ministers.
  • It is not permissible to insure with the insurance company outside the country on any money or property located in the country or on any responsibilities arising in it, and also it is not permissible to mediate in insurance for these funds except with an insurance company registered in accordance with the provisions of the insurance law in the Emirates.
  • As for reinsurance, it may be reinstated, whether inside or outside the course.

The insurance policy is issued within the country and is in the Arabic language, and an adequate translation can be attached to any other language. If there is a difference in the interpretation of the document, the accreditation here is for the Arabic text. Usually, the items in which the company is exempted from liability are highlighted in the insurance policy in a prominent and noticeable font and in a different color, and the marking is obtained by the insured.

The insurance companies must inform the Insurance Authority in the Emirates of the names of the members of its board of directors and the name of its general manager or the manager authorized to act, as well as the main employees. days from the date of the vacancy of the place, and the Director-General of the Authority shall be notified of this matter and who filled the place.

The insurance companies also give the Authority copies of the minutes of the meetings of the board of directors and the decisions related to the election of the chairman of the board of directors of the company and the representative and members authorized to sign on behalf of the company, as well as their signature forms, and all this within seven days from the date of the issuance of those decisions.

In the event that the resignation was submitted by the chairman and members of his board of directors in the company or their quorum was lost, the board of directors of the authority must form a temporary committee of experts and specialists and appoint a chairman and a deputy from among its members until the company’s management is taken over and after The general assembly is called to meet and decide, and all of this is within a period not exceeding three months from the date on which the committee was formed, and it is renewable for the same period of time and for one time only. The company shall bear the commission fees set by the Board.

Insurance companies licensed to carry out insurance business in the UAE must appoint a licensed actuary within a month from the date of granting the license, and the Director-General shall be informed of this within a month. The date of commencement of work is in accordance with the insurance law in the Emirates.

The director-general of the authority has the right to appoint an auditor or an expert to evaluate the conditions of the company and submit a report on it. The insurance company must cooperate with them so that he can do the work completed, and the company bears all the fees determined by the general manager for any of them.

The expert, the consultant, the actuary, and even the auditor are prohibited from disclosing to any party whatsoever the information that has been reached unless written approval is obtained from the Board.

The company is obligated to provide the Authority with detailed reports on its activities, which are signed by the chairman of its board of directors, its authorized manager, or those in charge of signing acts on behalf of the company. It also encloses their final annual accounts and all the detailed data attached to them, including the annual budget and a detailed profit and loss account for the type of insurance to be covered. It is practiced, and it is noted that for each one of them, in addition to the auditor’s report, this is done within a period not exceeding four months from the date of the end of the fiscal year. a day.

In the event that the accounts and data in the company do not comply with the provisions of the insurance law in the Emirates, the general manager shall request the company’s board of directors to correct the situation to obtain approval and prevent it from being presented to the general assembly until after obtaining approval.

In the event that the company suffers damages, losses, or poor financial conditions, the general manager must be notified immediately.

And insurance companies in the Emirates must be clear and transparent in dealing with their customers and in all the documents issued by them.

In conclusion, this is a small part of the insurance law and the insurance authority in the Emirates, which is required of insurance companies in the insurance law in the Emirates.