Takaful Insurer Prohibited from New Motor and Health Insurance Contracts by CBUAE

UAE, 03 October, 2024 : The Central Bank of the UAE (CBUAE) has prohibited a takaful insurer from issuing or renewing new motor and health insurance contracts, following article 33 of the Federal Decree Law No (48) of 2023 regarding the Regulation of Insurance Activities. The insurer will remain responsible for all rights and obligations from contracts made prior to this decision.

This action was taken due to the insurer's failure to meet the minimum capital requirement. The CBUAE has granted the insurer six months to rectify its solvency position and comply with regulatory directives.

The CBUAE aims to ensure that all insurers and their personnel adhere to UAE laws and standards, safeguarding policyholders and maintaining the integrity of the insurance sector and the broader financial system.

Source : www.centralbank.ae