Chapter Six: Obligations of the Company
Article (26): Payment of Compensation
The Insurance Company shall pay the compensation set out in the Insurance Policy to the Insured or to the Beneficiary, as the case may be, as soon as the insured incident occurs or the insured risk materializes. Following which, the Insurance Company shall subrogate the Insured for the indemnity it paid for damage in lawsuits of the Insured vis-à-vis the party causing the damage for which the Insurance Company’s liability has arisen.
Article (27): Insurance of Vehicles
The Insurance Company shall conclude the Insurance Policy for all motor vehicles licensed in the State when so requested by concerned parties. The Board shall set the insurance rates as commensurate with the severity of risks.
Article (28): Provision of Data and Information
1)
The Companies and the Insurance-Related Professionals shall provide any data or information requested the CBUAE concerning them or about any Company related or associated therewith in any manner whatsoever, within the period of time set by the CBUAE.
2)
The Company’s Board of directors shall invite the CBUAE to attend the general assembly meeting before at least (15) fifteen days from date of its convention. the CBUAE may assign one of its employees to represent it for such purpose.
3)
the CBUAE may assign one or more of its employees to verify or audit any of the Company’s transactions, records or documents, within the normal business hours of the Company. The Company shall put any of the aforesaid at the disposal of the so assigned employee and shall cooperate with him to enable him to fully perform his duties.
4)
CBUA may, based on the audit result, assign Experts, Consultants, Actuaries or Auditors to audit/check the Company’s operations, evaluate its positions and submit a report thereon. The Company shall cooperate with them in a manner that enables them to fully perform their duties. The company shall bear their remunerations, as determined by the CBUAE for any one of them.
5)
It is prohibited for Expert, Consultant, Actuary or Auditor to disclose to any third party whatsoever any information received under Clause (4) above without obtaining the CBUAE’s written approval, except for the disclosure that is based on a court order.
Article (29): Financial Reports
1)
The Company shall provide the CBUAE with a detailed annual report on its operations signed by the Chairman, the Authorized Manager or authorized signatories of the Company, including the annual financial statements, financial reports reflecting detailed profits and losses of the type of insurance carried out by the Company and each branch thereof and the Auditor’s report, within a period not exceeding (3) three months from the end of the fiscal year. the CBUAE shall be delivered a copy of the report, at least (15) fifteen business days before inviting to the general assembly meeting.
2)
The Company shall not present the accounts and financial statements referred to in Clause (1) above to the general assembly meeting except after obtaining the CBUAE’s approval.
3)
The Chairman or Director General shall promptly notify the CBUAE if the Company is exposed to serious financial or administrative situations compromising the rights of the Insured or Beneficiaries.
Article (30): Insurance Policy Forms
1)
The Company shall provide the CBUAE with forms of the Insurance Policies and their approved annexes, including the general and special terms and conditions, the technical grounds of such policies and the Premiums rates annexed thereto, and shall provide the CBUAE with schedules of the redemption values of life Insurance Policies and funds accumulation operations and the premiums rates annexed thereto.
2)
Should the public interest requires or in case of imperfection that may compromise the interests of Policyholders, the CBUAE may request the Company to introduce an amendment to the forms of Insurance Policies and their approved annexes, within the period determined the CBUAE for such purpose.
3)
The Company shall provide the Insured and the Beneficiaries with copies of the Insurance Policies and the annexes thereof after the amendment is introduced, within the time limit set the CBUAE.
Article (31): Disclosure and Transparency
The Companies shall comply with the principles of disclosure and transparency while dealing with the Insured and the Beneficiaries and in all policies, documents, leaflets, advertisements, publicity, articles and scientific materials issued by them, which are regulated by a resolution by the Board.
Article (32): Auditor
1)
The Company’s Auditor shall submit a prompt report to the CBUAE, with a copy thereof to the Company’s Chairman in any of the following cases:
a.
If they found out that the financial position of the Company does not enable it to fulfill its obligations vis-a-vis the Insured or Beneficiaries or hinders its capacity to fulfil the financial requirements set forth in this Decree-Law and the resolutions, regulations, statutes and instructions issued thereunder related to the financial position of the Company;
b.
If they found out that there is material imperfection in the Company’s performance of its financial procedures, including entering data in its accounting records, and the existence of material deficiencies in the internal controls that could pose a threat to its financial position and stability;
c.
If they refuse or have reservations in respect of any certificate or statement issued by the Company related to its income or financial statements;
d.
If they fail to express their opinion on the Company’s financial statements due to material misstatements or fraud;
e.
If they find out that the Company does not comply with the laws, resolutions, regulations, and instructions related to the Company’s financial statements; and
f.
If they decide to resign or their reappointment to the Company is rejected.
2)
The CBUAE may request the Auditor to directly provide it, within a specific period, with the information needed to monitor the Company’s operations.
3)
When the Auditor recommends that the financial statements filed thereto by the board of directors not to be approved, the Company’s general assembly meeting shall decide the following:
a.
To return the financial statements to the Company’s board of directors and ask the latter to correct the statements according to the Auditor’s observations and are deemed approved after the observations are rectified.
b.
To refer the matter to the CBUAE to appoint a committee of expert Auditors and fix their remunerations to be charged by the Company to adjudicate the subject matter of the dispute between the Company’s board of directors and its Auditor. Having been presented again to, and approved by the general meeting, the Committee’s decision shall be binding and the financial statements shall be adjusted as per the committee’s decision.