Images are used for illustrative purposes. Photo: File
Published: Wednesday, October 2, 2024, 10:18 a.m.
Last updated: Wednesday, October 2, 2024, 8:53 p.m.
The Central Bank of the United Arab Emirates (CBUAE) announced on Wednesday that it has banned takaful insurance companies from issuing or entering into new contracts for motor and health insurance for violating the law.
The ban also includes renewal, according to a statement released by the regulator on Wednesday.
โThis action was taken as a result of the insurance company’s failure to meet minimum capital requirements. The CBUAE has given the insurance company six months to rectify its solvency position and comply with instructions in this regard. We have given them a period of time,” the statement said.
Get the latest news. Follow KT on our WhatsApp channel.
CBUAE ensures that all insurance companies, their owners and staff comply with UAE laws, regulations and standards adopted by CBUAE to protect policyholders and the integrity of the insurance sector and the UAE financial system. We are aiming for
The regulator did not name the takaful insurance company. It was also the first company to be banned from issuing auto and health insurance for not meeting minimum capital requirements.
The decision on the ban was made in accordance with Article 33 of the Federal Decree Law No. (48) of 2023 on the Regulation of Insurance Activities (Insurance Law).
“Insurance companies remain responsible for all rights and obligations arising from insurance contracts entered into before the ban decision,” it said in a statement.
Also read: