New advanced regulatory system to strengthen motor insurance in UAE27 Feb, 2018
The UAE Insurance Authority has approved resolutions amending the provisions relating to the Motor Vehicle Insurance Price Definition System and the Unified Motor Vehicle Insurance Document System.
The UAE Insurance Authority (IA) has approved resolutions amending the provisions relating to the Motor Vehicle Insurance Price Definition System and the Unified Motor Vehicle Insurance Document System. The new amendments have been approved on the basis of studies conducted by the Authority on the impact of adopting both systems in the local market in 2017.
The move is aimed at strengthening the motor insurance in UAE. A statement issued after the resolutions were passed mentions that it aims to protect the rights of both the insurance policyholders as well as insurance companies from future risk.
This will contribute to the development of the required technical framework and laws, to strengthen the establishment of a new and advanced regulatory system for the motor insurance and Emirati insurance markets, which will increase the insurance sector’s share of national GDP and support the economy’s overall growth.
The Authority has introduced new provisions in its price definition system, which will support the UAE’s efforts to promote renewable energy and adopt clean and green energy solutions, contributing to the protection of the environment and reducing pollution and emissions produced by cars.
The new amendments will promote competitiveness in the local insurance market and encourage companies to provide the best services at competitive prices, thereby improving the performance of the Emirati insurance sector and strengthening the UAE’s position as a vital international centre for insurance services. The adoption of a unified vehicle insurance document system that relates to civil responsibility, loss and damage will contribute to the development of an appropriate regulatory framework and technical regulations, as the provisions of the new system are in line with the best international practices in the insurance industry. The authority will continue monitoring the performance of insurance companies and their compliance with its pricing policies and will correct any practices that are not in line with its laws, systems and instructions.
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