The State

:

The United Arab Emirates. 

The CBUAE

:

The Central Bank of UAE.

Board 

:

The CBUAE’s Board of Directors. 

Chairman 

:

The Chairman of the Board.

Governor 

:

The Governor of the Central Bank.

Financial Free Zone

:

Any financial free zone established in the State under the provisions of Federal Law No. (8) of 2004, on Financial Free Zones, or any other repealing law.

Insurance Company (Insurer)

:

An insurance company established in the State as well as a foreign insurance company licensed to carry out insurance business in the State, either through a branch or through an Insurance Agent.

Reinsurance Company

:

A reinsurance company licensed to engage in reinsurance business, either in the State or abroad.

Companies

:

 Insurance and Reinsurance Companies.

The Insured

:

A Person that enters into an insurance policy with the Insurance Company for their benefit or the benefit of the named Insured or the Beneficiary.

Beneficiary

:

A Person who initially acquired the Insurance Policy rights or to whom such rights are legally transferred.

Insurance Policy

:

A contract between the Insurer and the Insured setting out the insurance terms, rights and obligations of both parties or the rights of the insurance Beneficiary, and the annexes attached to the policy constitute an integral part thereof.

Insurance Agent

:

A Person licensed or authorized by the CBUAE, and is approved by the Insurance Company and authorized to carry out insurance activities on its own behalf or on behalf of a branch thereof.

Insurance Broker

:

A legal person licensed by the CBUAE and acts as independent intermediary in insurance and reinsurance operations between an insurance or re- insurance applicant on the one side and any Company on the other side, and receives, in consideration of its efforts, a commission from the Company with which insurance or reinsurance is concluded.

Surveyor and Loss Adjuster

:

A Person licensed or authorized by the CBUAE to inspect and assess the damage incurred in the subject of insurance.

Insurance Consultant

: 

A Person licensed or authorized by the CBUAE to examine insurance requirements for their clients and give advice in respect of the suitable insurance coverage, assistance in preparing insurance requirements and receives their remuneration from their clients.

Actuary

:

A Person licensed or authorized by the CBUAE to determine the value and price of Insurance Policies, and to assess the technical provisions, accounts and all matters related thereto.

Health Insurance Claims Management Company

:

A legal Person licensed by the CBUAE to carry out health insurance claims management business.

Insurance- Related Professionals

:

Any Person licensed or authorized by the CBUAE to operate as an Insurance Agent, Insurance Broker, Surveyor and Loss Adjuster, Insurance Consultant, Actuary or Health Insurance Claims Manager, or any other profession related to insurance as determined and regulated by a resolution of the Board.

Branch

:

A branch of the Company that carries out insurance activities in the name of the Company.

Premium

:

An amount of money paid or payable by the Insured under the Insurance Policy and is called “Contribution” in Takaful insurance.

Authorized Manager

:

A natural Person appointed by a foreign insurance Company to manage its branch in the State.

Senior Employee

:

Any Person who occupies an executive position equivalent to the duties of a Director-General, Authorized Manager or the deputy or assistant of either one, or any department director, internal audit director or branch manager.

Technical Provisions 

:

Provisions which the Insurer must deduct and retain to cover the Insured’s accrued financial obligations vis-a-vis the Insured, pursuant to the provisions of this Decree-Law.

Solvency Margin

:

A surplus in the value of the Company’s existing assets over its liabilities to such an extent that enables it to fulfil all its obligations and pay the required insurance claims once they become due without impeding the Company’s business or weakening its financial position.

Minimum Guarantee Fund

:

An amount equal to one third of the required Solvency Margin or the amount determined by the Board, whichever is greater.

Auditor

:

A Person authorized to carry out accounting and audit business in the State.

Takaful Insurance

:

A collective contractual scheme intended to achieve solidarity and cooperation among a group of contributors to address certain risks, where each one pays an amount of money called “contribution” to be deposited in a Takaful insurance fund, through which compensation is to be paid to eligible persons when a risk is sustained.

Higher Sharia’ah Authority (HAS)

:

The authority established under Federal Decree-Law No. (14) of 2018, referred to hereinabove.

Person 

:

A natural and legal Person.

Commercial Register

:

The Register established with the competent authority under Federal Decree-Law No. (37) of 2021, on the Commercial Register, or any other superseding law.

1)

The provisions of this Decree-Law shall apply to the following categories:

a.

Companies and Insurance-Related Professions; and

b.

Holding companies that control or acquire (15%) of the volume of insurance business in the State, or whose insurance activity and related services represent more than (50%) of their revenues. The Board shall issue the controls governing the operation of such Companies in the insurance activity.

2)

The provisions of this Decree-Law shall not apply to Companies operating in the financial Free Zones, save as specifically provided for in this Decree-Law.