The UAE Insurance Authority (IA) has approved resolutions amending the provisions relating to the Vehicle Insurance Price Definition System and the Unified 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.
A press statement was issued after the resolutions were passed which mentioned that the new resolutions would protect the rights of insurance policyholders and shareholders of insurance companies, 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 vehicle 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.