The Central Bank of the UAE. ARCHIVE

The Central Bank of the UAE (CBUAE) has banned a Takaful insurer from issuing or renewing motor and health insurance policies. The regulator issued the ban after determining that the company failed to meet the minimum capital requirements necessary for operation, a direct violation of UAE laws governing the insurance sector. In a statement on Wednesday (October 2), the CBUAE confirmed the insurer had been given a six-month period to rectify its solvency position and comply with regulations. This action is part of the CBUAE’s broader efforts to ensure the integrity of the UAE’s financial system and to safeguard the rights of policyholders. While the specific name of the Takaful insurer remains undisclosed, this case marks the first instance of a company being banned for non-compliance with capital requirements under the new law. Despite the ban, the company is still responsible for all existing obligations to policyholders for contracts signed before the prohibition. The CBUAE emphasized that all insurers operating in the country must strictly adhere to laws, regulations, and capital adequacy standards to protect policyholders and the stability of the insurance sector. The Central Bank will continue to monitor and enforce compliance with UAE insurance laws rigorously. ICA/Expat Media
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