IA imposes administrative fines

The Insurance Authority (IA) has issued a list of 204 violations that are liable for administrative fines payable by any person, company or insurance related professions in case of committing the transgression.

The regulator has published in recently published Cabinet Resolution no. (7) of 2019 a list of violations and penalties that relate to Takaful insurers and reinsurers, insurance companies dealing with motor insurance policies, insurers involved in point of sales, surveyors and loss adjustors, actuaries, insurance consultants, third party administrators, insurance agents and brokers, those companies in consolidation stages, life insurance companies, auditors, among others for failing to carry out due responsibilities.

The fine amounts range from AED10,000 to AED250,000 and the amount of administrative fines will be doubled if the violation is repeated within one year as from the date of the last violation with a maximum fine amount of AED2 million.

The insurance regulator has allowed for appeals of decisions issued before the Board within 15 days as from date of notification of such decision. Grievances should be justified with all supporting documents in accordance with procedures specified by the Board. Decisions regarding such appeals will be issued within a period of 60 days from the date of submission of appeal.

A copy of the decision may be viewed here or on the Insurance Authority website.