Cabinet Decision No. 7/2019

On Administrative Fines Imposed by the Insurance Authority

The Cabinet,

Having perused the Constitution,

Federal Law No. 1/1972 on the Competencies of Ministries and Powers of Ministers, and its amendments;

Federal Law No. 6/2007 on the Establishment of the Insurance Authority and Regulation of its Operations, and its amendments;

Federal Law No. 1/2011 on the General Revenues of the UAE;

Federal Law No. 14/2016 on the Violations and Administrative Penalties in the Federal Government,

And based on the approval of the Cabinet,

Decided:

Article 1 - Definitions

In the application of the provisions of this Decision, the words and expressions shall have the meanings stated beside them, unless the context requires otherwise:

State: State of the United Arab Emirates.

Authority: Insurance Authority established under the Law.

Board: Authority's Board of Directors.

Director General: Director General of the Authority.

Company: The insurance Company established in the State and the foreign insurance Company licensed to initiate insurance activity inside the State, either through a branch or through an insurance agent, including the takaful insurance companies.

Person: Physical or moral Person.

Insurance-related Professionals: Any Person licensed by the Authority to exercise any activity as insurance agent, actuary, insurance broker, insurance adjuster, insurance consultant health insurance claims management Company or any other profession related to insurance decided to be regulated by the Board.

Regulations, Systems, Instructions and Decisions: Any regulations, systems, instructions or decisions issued under the Law.

Law: The Federal Law No. 6/2007 on the Establishment of the Insurance Authority and Regulation of its Operations, and its amendments.

Article 2 - Scope of Application

The provisions of this Decision shall apply to any Person, Company or Insurance-related Professional in case of committing any violation referred to in the Table enclosed hereto.

Article 3 - Violations and Penalties

1-Without prejudice to any sanction or procedure prescribed by the Law and other relevant legislation, the Authority may impose the administrative fines stated in the Table enclosed to this Decision on whomever commits any of the violations mentioned therein.

2-The amount of the administrative fines stated in the Table referred to in Clause (1) of this Article shall be doubled in case of repeated violation within one year from the date of the last violation, without exceeding AED 2 million.

Article 4 - Appeal

1-Any interested party may lodge an appeal to the Board against any Decision issued pursuant to the provisions of this Decision, provided that the appeal is lodged within a period not exceeding (15) fifteen days from the date of being notified of the appealed Decision. The appeal shall be justified and accompanied by all supporting documents according to the procedures determined by the Board.

2-The Board shall decide on the appeal according to the procedures issued within a period not exceeding (60) sixty days from the date of lodging such appeal.

Article 5 - Collection of the Administrative Fines

The Authority shall collect the administrative fines imposed according to the provisions of this Decision pursuant to the means prescribed by the Ministry of Finance.

Article 6 - Issuance of Implementing Decisions

The Board shall issue the Decisions necessary for the implementation of the provisions of this Decision.

Article 7 - Amendment of the Table of Fines

The table enclosed to this Decision shall form an integral part thereof and the Cabinet may make any amendments to the violations and administrative fines stated therein, either by addition, deletion or modification.

Article 8 - Abrogations

Any provision contrary to or inconsistent with the provisions of this Decision shall be abrogated.

Article 9 - Publication and Entry into Force

This Decision shall be published in the Official Gazette and shall enter into force three months after the date of publication thereof.

Issued by us:

On: 29 Rabi' Al-Akhar 1440 H

Corresponding to: January 6, 2019

Mohammed Bin Rashid Al Maktoum

Prime Minister

This Decision was published in the Official Gazette no. 645, P. 297.