Federal Decree-Law No. (48) of 2023 Regulating Insurance Activities (finance and banking law)

Article (1) 
 Definitions  
For the purpose of applying the provisions of this Decree -Law, the following words and 
expressions shall bear the meanings assigned thereto respectively, unless the context requires 
otherwise:  
The State  
 : The United Arab Emirates.  
  
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 The CBUAE  
 : The Central Bank of UAE.  
 
Board  
 : The CBUAE's Board of Directors.  
 
Chairman  
 : The Chairman of the Board.  
 
Governor  
 : The CBUAE's Governor.  
 
Free Zone  
 : Any financial free zone established in the State under the provisions of 
Federal Law No. (8) of 2004, on Financial Free Zones, or any other 
superseding law.  
 
Insurance 
Company 
(Insurer)  
 : An insurance company incorporated in the State and a foreign insurance 
company licens ed to engage in insurance business in the State, either 
through a branch or through an Insurance Agent.  
 
Reinsurance 
Company  
 : A reinsurance company licensed to engage in reinsurance business, either in 
the State or abroad.  
 
Companies  
 : Insurance and reinsurance companies.  
 
The Insured  
 : A Person that enters into an insurance policy with the Insurance Company 
for their benefit or the benefit of the named Insured or the Beneficiary.  
 
Beneficiary  
 : A Person who initially acquires the Insurance Policy rights or to whom such 
rights are legally transferred.   
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Insurance 
Policy  
 : A contract between the Insurer and the Insured setting out the insurance 
terms, rights and obligations of both parties or the rights of the insurance  
Beneficiary, and the annexes attached to the policy constitute an integral 
part thereof.  
 
Insurance 
Agent  
 : A Person licensed or authorized the CBUAE, and is approved by the 
Insurance Company and authorized to carry out insurance activities on its 
own behalf or on behalf of a branch thereof.  
 
Insurance 
Broker  
 : A legal person licensed by the CBUAE and acts as independent intermediary 
in insurance and reinsurance operations between an insurance or re -
insurance applicant on the one side and any Comp any on the other side, 
and receives, in consideration of its efforts, a commission from the 
Company with which insurance or reinsurance is concluded.  
 
Surveyor and 
Loss Adjuster  
 : A Person licensed or authorized by the CBUAE to detect and assess the 
damage incurred as a result of the insured risk.  
 
Insurance 
Consultant  
 : A Person licensed or authorized by the CBUAE to examine insurance 
requirements for their clients and give advice in respect of the suitable 
insurance coverage, assists in preparing insurance requirements and 
receives their fees from their clients.  
 
Actuary  
 : A Person licensed or authorized the CBUAE to set the value and price of 
Insurance Policies, and to asses the technical provisions, accounts and all  
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 matter related thereto.  
 
Health 
Insurance 
Claims 
Management 
Company  
 : A legal Person licensed the CBUAE to engage in health insurance claims 
management business.  
 
Insurance -
Related 
Professionals  
 : Any Person licensed or authorized the CBUAE to operate as an Insurance 
Agent, Insurance Broker, Surveyor and Loss Adjuster, Insurance Consultant, 
Actuary or health insurance claims manager, or any other profession related 
to insurance as determined and regulated by a resolution of the Board.  
 
Branch  
 : A branch of the Company that carries out insurance activities in its own 
name.  
 
Premium  
 : An amount of money paid or payable by the Insured under the Insurance 
Policy and is called "Contribution" in Takaful insurance.  
 
Authorized 
Manager  
 : A natural Person appointed b y a foreign insurance Company to manage its 
branch in the State.  
 
Senior 
Employee  
 : Any Person who occupies an executive position equivalent to the functions 
of a director -general, Authorized Manager or the deputy or assistant of 
either one, or any department director, internal audit director or branch 
manager.   
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Technical 
Provisions  
 : Provisions which the Insurer must deduct and retain to cover the Insured's 
accrued financial obligations vis -a-vis the Insured, pursuant to the 
provisions of this Dec ree-Law.  
 
Solvency 
Margin  
 : A surplus in the value of the Company's existing assets over its liabilities to 
such an extent that enables it to fulfil all its obligations and pay the required 
insurance payouts once they become due without impeding the Company's 
business or weakening its financial position.  
 
Minimum 
Guarantee 
Fund  : An amount equal to one third of the required Solvency Margin or the 
amount determined by the Board, whichever is greater.  
 
Auditor  
 : A Person authorized to carry out accou nting and audit functions in the 
State.  
 
Takaful 
Insurance  
 : A collective contractual scheme intended to achieve solidarity and 
cooperation among a group of contributors to address certain risks, where 
each one pays an amount of money called "contribution" to be deposited in 
a Takaful insurance fund through which compensation is to be paid to 
eligible persons when a risk is sustained.  
 
Higher Sharia 
Authority 
[HAS]  
 : The authority established under Federal Decree -Law No. (14) of 2018, 
referr ed to hereinabove.  
  
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 Person  : A natural and legal Person.  
 
Commercial 
Register  
 : The Register established with the competent authority under Federal 
Decree -Law No. (37) of 2021, on the Commercial Register, or any other 
superseding law.

Article (2)  
Scope of Application  
1. The provisions of this Decree -Law shall apply to the following categories:  
a. Insurance Companies and Insurance -Related Professions; and  
b. Holding companies that control or acquire (15%) of the volume of insurance 
business in the State, or whose insurance activity and related services represent more 
than (50%) of their revenues. The Board shall issue the controls governing the 
operation of such Companies in the insurance activity.  
2. The provisions of this Decree -Law s hall not apply to the Companies operating in the 
financial Free Zones, save as specifically provided for in this Decree -Law.

Article (3) 
 Insurance Concept  
An insurance is a contract whereby the Insurer undertakes to pay the Insured or the eligible 
Beneficiary an amount of money, an arranged revenue or any other monetary compensation 
in case the insured incident or risk has occurred, in return for Premiums or any other regular 
payments to be paid by the Insured to the Insurer.  
   
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 Chapter  Two  
Insurance Business

Article (4) 
 Insurance Types  
The insurance business shall be divided into the following types:  
1. Insurance of Persons and fund accumulation operations; and  
2. Property and liability insurance.  
The resolutions, statutes, regulations and instructions issued by the Board shall determine the 
insurance activities that fall under each insurance type of the above.

Article (5)  
Compulsory Insurance  
The Board may impose compulsory insurance against some risks under any regulatio ns 
whereby the controls and conditions of insurance and other provisions related thereto are 
identified.

Article (6) 
 Insurance Services Fees  
1. The CBUAE shall charge fees for supervision and control, in addition to any other 
chargeable fees for the services provided the CBUAE under the provisions of this Decree -
Law, including the services of issuing licenses and permits.  
2. The Board shall issue a resolution determining the fees referred to in Clause (1) above, 
and shall publish the same in the Official  Gazette.  
  
  
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Article (7) 
Establishment of Funds  
The CBUAE may establish funds with an independent legal person for the purpose of 
protecting policyholders, Beneficiaries and aggrieved persons. A resolution shall be issued by 
the Board specifying the method  of forming such funds and their objectives, mechanism of 
finance, risks covered by them and benefits they provide when such risks occur, methods of 
their termination and the provisions of their liquidation.  
  
Chapter Three   
Functions of the Board and the Governor

Article (8)  
Functions of the Board  
The Board shall adopt the policies, regulations and rules necessary for regulating insurance 
business, pursuant to this Decree -Law, including the following:  
1. The Solvency Margin and the Minimum Guarantee Fund controls according to the 
generally -accepted international standards in this regard;  
2. Basis of calculating the Technical Provisions;  
3. Reinsurance criteria and controls;  
4. Basis of investing the Company's assets;  
5. Determining the Company's assets that meet the a ccrued insuring obligations;  
6. Accounting policies to be adopted by the Company and the required forms to prepare 
and present financial statements;  
7. Basis of developing accounting books and records of the Companies, Agents, and 
Brokers, along with determining the data to be recorded in such books and records;  
8. Records which the Company commits itself to maintain and the description of such  
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 records, as well as data and documents that must be furnished to the CBUAE;  
9. Conditions, controls and ethics for practicing the insurance and reinsurance activity and 
the Insurance -Related Professions;  
10. Anti -money laundering and combating terrorism financing and the financing of illegal 
organizations in insurance activities, in cooperation with the relevant authoritie s; 
11. Insurance policy rates it deems appropriate and the technical grounds thereof;  
12. Controls and conditions for licensing the Companies and the Insurance -Related 
Professionals;  
13. Minimum capital for the Companies and the Insurance -Related Professionals;  
14. Rules and controls necessary to protect clients of the Companies and Insurance -Related 
Professionals and provide them the appropriate Insurance Coverage;  
15. Conditions, rule and controls for approving Auditors of the Companies and the 
Insurance -Related Professionals and their obligations;  
16. Setting out and determining the Emiratization targets in the insurance sector, monitoring 
the compliance with such targets and imposing penalties and fines on the Companies 
and the Insurance -Related Professiona ls that do not comply with the same, and to that 
end, it may coordinate with the relevant authorities or may entrust them with any of 
such functions; provided that the Board shall set a mechanism for the retention and 
disposition of amounts of such fines, and the CBUAE shall submits an annual report to 
the Cabinet on the Emiratisation targets and the actions that have been taken to achieve 
such targets;  
17. Regulating Takaful Insurance business, including the provisions and procedures for 
appointing and approvi ng the Sharia Supervisory Committee and the conditions 
required to be fulfilled by its members;  
18. The financial reporting system and the external audit of the Companies and the 
Insurance -Related Professionals;   
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 19. Regulations, rules, standards, directives and instructions related to inspection operations 
and procedures of the Companies and the Insurance -Related Professionals; and  
20. Regulations, rules and standards related to the competency of the Senior Employee.

Article (9) 
 Functions of the Gov ernor  
1. The Governor shall issue the policies, regulations, statutes, instructions and rules 
approved by the Board, and shall issue the resolutions and instructions necessary for 
implementing the same.  
2. The Governor shall be responsible for applying the provi sions of this Decree -Law and 
the CBUAE's regulations and the Board's resolutions issued in pursuance thereof.  
3. The Governor may delegate his functions set forth herein to any of his deputies, 
assistants or other Senior Employees of the CBUAE; provided that the delegation is in 
writing and for a specific period.  
  
 
Chapter Four  
 Insurance Companies

Article (10) 
 Engagement in Insurance Business  
Any of the following Persons licensed the CBUAE may engage in insurance business in the 
State:  
a. An Insurance Company incorporated as a public joint -stock company in the State; and  
b. A branch of a foreign Insurance Company.  
   
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Article (11) 
 Prohibition of Combination of Insurance Operations  
1. Insurance Companies may not combine persons and fund accumulation insurance 
operations and property and liability insurance operations.  
2. Existing companies licensed to carry out the two types of insurance before issuing 
Federal Decree -Law No. (6) of 2007, referred to hereinabove, shall remain in practice.  
3. The  Companies referred to in Clause (2) above shall comply with the following controls:  
a. Complete separation between persons and funds accumulation insurance operations 
and property and liability insurance operations in terms of technical, financial, 
technolog ical, administrative and legal procedures and the relevant technical, 
administrative and financial systems and staff, except for the Company's Director 
General; and  
b. Drawing up all financial reports and statements required by virtue of this Decree -
Law and t he Board's instructions and resolutions on a unified aggregate basis, and on 
the basis of the separation between persons and funds accumulation insurance 
operations and property and liability insurance operations.  
4. Notwithstanding the provisions of Clause (2) above, the Cabinet may, at the proposal of 
the Board, issue a resolution obligating Insurance Companies to adjust their affairs 
pursuant to the provisions of Clause (1) above, or may issue a resolution that such 
Companies remain carrying out the  two types of insurance and while being prohibited 
from issuing new Insurance Policies combining the property and liability insurance and 
the persons and funds accumulation insurance operations, in accordance with the 
controls and requirements set by the C abinet in this regard.  
  
  
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Article (12)  
Insurance with a Company Abroad  
1. Insurance brokerage for funds or property existing in the State or for the liabilities arising 
therefrom may only be carried out by an Insurance Company licensed under the 
provisions of  this Decree -Law.  
2. The Company may reinsure any property inside and outside the State.  
3. No Person may conclude an Insurance Policy with an Insurance Company outside the 
State to cover any money or property in the State or liabilities arising therein. No lega l 
person in the State may insure its personnel in the State with an Insurance Company 
outside the State.  
4. Notwithstanding the provisions of Clause (3) above, insurance may be made with an 
Insurance Company in the State in case the required Insurance Coverag e is not available 
in the State, or Insurance Companies abstain from, or unable to provide such coverage, 
or for any other reasons decided the CBUAE, in accordance with the controls and 
conditions determined by the Board in this regard.

Article (13)  
Insurance Policy Language  
1. The Insurance Policy shall be drawn up in the State in Arabic, and an accurate translation 
into any other language may be attached therewith. In case of discrepancy in the 
translation of the policy, the Arabic text shall prevail.  
2. The policy's clauses exempting the Insurance Company from liability shall be written in 
bold with a different colour, and must be approved by the Insured beforehand.  
3. Insurance Policies may be electronically issued, in accordance with the terms and 
conditio ns established by virtue of a resolution by the Board.   
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 4. Notwithstanding the provision of Clause (1) above, the Governor may exclude certain 
Insurance Policies from the condition of being drawn up in Arabic if so requested the 
CBUAE.  
  
Chapter Five   
Governan ce of the Companies

Article (14)  
General Framework of Governance  
The CBUAE shall set the general framework for governance of the Companies, as well as the 
regulations and rules for organizing the work of their boards of directors. the CBUAE shall also 
set the conditions that must be fulfilled by board candidates and the conditions for appointing 
their Senior Employees; provided that the Companies whose securities are listed on financial 
markets of the State shall comply with the governance requirements issued by SCA.

Article (15)  
Conditions of Appointment of Board Member, Director General or 
Authorized Manager of the Company  
A Person to be appointed as a board member, Director General or Authorized Manager of the 
Company must:  
1. Have never been convicted of a felony or misdemeanor involving moral turpitude and 
breach of trust or of insolvency, unless rehabilitated; and  
2. Have never been punished with any administrative sanction determined by a decision of 
the Board, on the grounds of committing a v iolation of any of the provisions of this 
Decree -Law or Federal Decree Law No. (32) of 2021, referred to hereinabove, in his   
Federa l Decree Law of 2023 Regulating Insurance Activities  14 
 capacity as a Director General or board member of a Company or beneficial owner 
thereof or controlling over its capital, including the liability for causing loss, bankruptcy 
or liquidation of the Company.

Article (16) 
 Prohibitions  
1. The Company's chairman, board member, Director General and Authorized Manager or 
who acts on their behalf shall be prohibited from:  
a. Engaging in managing other competing Insurance Company or any company that 
carries out the same or similar Insurance activity;  
b. Competing the Company's business or carrying out any action or activity that 
conflicts with the Company's interest;  
c. Practicing as an Insuranc e Agent or Broker; or  
d. Receiving a commission for any insurance operation.  
2. Any Person who assumes the management of the Company or any employee thereof 
may not be a representative of any shareholder of the Company.

Article (17) 
 Conditions for Appointment of Senior Employee  
1. In order for a Senior Employee to be appointed, he/she must fulfil the same conditions 
set forth in article (15) above, in addition to the fulfillment of the qualifications, 
efficiency and expertise requiremen ts necessary for carrying out insurance operations. 
The Company shall provide the CBUAE with a detailed statement containing the 
academic qualifications, practical experience and documents supporting the above.  
2. The Board shall issue a resolution defining t he academic qualifications, the practical  
Federa l Decree Law of 2023 Regulating Insurance Activities  15 
 experience and the documents referred to in Clause (1) above.

Article (18) 
 Vacant Position  
The Company shall notify the CBUAE in case the position of the Company's board member, 
Director General, Senior Employee  or Authorized Manager becomes vacant. The Company's 
board of directors or the Company, as the case may be, shall fill the vacant position within a 
period not exceeding (30) days from the date of being vacant, after obtaining the approval of 
the CBUAE.

Article (19)  
Providing the CBUAE with Meeting Minutes  
The Company's board of directors shall provide the CBUAE with copies of the board's minutes 
of meetings and decisions related to the election of the Company's chairman, vice -chairman 
and members authorized to sign on behalf of the Company and their specimen signatures, 
within (7) seven days from date on which such decisions are issued.

Article (20) 
 Resignation of Board Members  
Should the chairman and board members submit their resignations or should the vacant 
positions reach one quarter of the Company's board members, the Governor shall:  
1. Form an interim committee comprising experienced and specialized individuals and 
appoint a chairman and vice -chairman thereto to assume the m anagement of the 
Company;  
2. Call for a general meeting within a period not exceeding (3) three months following date  
Federa l Decree Law of 2023 Regulating Insurance Activities  16 
 of forming the committee, renewable for a similar period only once, in order to elect a 
new board of director of the Company. The Company sha ll bear the committee's 
remunerations, as decided by the Governor.

Article (21)  
Protection of the Company  
1. The CBUAE shall take whatever measures it deems appropriate for the proper 
functioning of the Company's business, in accordance with the controls d etermined by 
the Board. To that end, the CBUAE may:  
a. Request to hold a general meeting to discuss any subject the CBUAE deems critical;  
b. Request to include any item the CBUAE deems necessary to be included on the 
Company's general meeting agenda, even while the general meeting is being held; 
and  
c. Stay the execution of any decision issued by the Company's general meeting if it 
contradicts the laws or regulations in force.  
2. If the Company's general meeting is unable to take a decision on the appointment of its 
Auditor, or if the appointed auditor rejects the appointment for any reason whatsoever, 
the CBUAE may appoint an Auditor for a period of one fiscal year and determine their 
fees at the Company's expense.  
3. If the Company's general meeting is unable to ap point members of the Sharia 
Supervisory Committee, pertaining to Companies where such committee is required, or 
if this appointment is not possible for any reason, the CBUAE may appoint the members 
of the Committee and fix their remunerations at the expens e of the Company.  
  
  
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Article (22) 
 Publication of the Call to the General Meeting  
1. The Company may publish a call to hold the general meeting in newspapers only 
following the approval of the CBUAE of the publishing. The Company may only include 
any additional items on the general meeting's agenda subject to prior approval of the 
CBUAE.  
2. Subject to the provisions of Clause (1) above, a Company whose securities are listed on 
financial markets may publish an invitation to the general meeting in newspaper s only 
following the approval of SCA.

Article (23)  
Technical Provisions and Reserves Required to be Maintained  
The Company, in implementation of the instructions issued by the Board, shall maintain the 
following:  
1. Solvency margin and the Minimum Guarantee  Fund, as per the type of insurance carried 
out by the Company;  
2. Technical Provisions estimated at the end of each fiscal year; and  
3. Reserves to be maintained in the State.

Article (24) 
Appointment of Actuary  
The Company licensed to engage in insurance business shall appoint or approve a registered 
actuary, pursuant to the provisions of article (65) hereunder, within one month from date of 
being granted the license, and shall so notify the CBUAE within one month from the date of 
appointment or approval of the Actuary.  
  
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Article (25) 
 Insurance Pool  
Insurance Companies may together create one or more insurance pool(s) to provide an 
Insurance Coverage of any branch of insurance or any specific operation for the benefit of the 
pool, pursuant to the bylaw of each pool; provided that the CBUAE's prior approval is 
obtained . 
 
Chapter Six 
 Obligations of the Company

Article (26)  
Payment of Compensation  
The Insurance Company shall pay the compensation set out in the Insurance Policy to th e 
Insured or to the Beneficiary, as the case may be, as soon as the insured incident occurs or the 
insured risk is realized. Whereupon, the Insurance Company shall subrogate the Insured for 
the indemnity it paid for damage in claims of the Insured vis -à-vis the party causing the 
damage for which the Insurance Company's liability has arisen.

Article (27)  
Insurance of Vehicles  
The Insurance Company shall conclude the Insurance Policy for all motor vehicles licensed in 
the State when so requested by stakeholders. The Board shall set the insurance rates as 
commensurate with the severity of risks.  
  
  
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Article (28)  
Provision of Data and Information  
1. The Companies and the Insurance -Related Professionals shall provide any data or 
information requested the CB UAE about them or about any Company possessively 
related or associated therewith in any manner whatsoever, within the time limit set the 
CBUAE.  
2. The Company's Board of directors shall invite the CBUAE to attend the general meeting 
before at least (15) fifte en days from date of its convention. the CBUAE may assign one 
of its employees to represent it for such purpose.  
3. the CBUAE may assign one or more of its employees to verify or audit any of the 
Company's transactions, records or documents, within the normal  business hours of the 
Company. The Company shall put any of the aforesaid at the disposal of the so assigned 
employee and shall cooperate with him to enable him to fully perform his duties.  
4. CBUA may, based on the audit result, assign experts, consultants, Actuaries or Auditors 
to audit/check the Company's operations, evaluate its positions and submit a report 
thereon. The Company shall cooperate with them in a manner that enables them to fully 
perform their duties. The company shall bear their remunerations, as determined the 
CBUAE for any one of them.  
5. The expert, consultant, Actuary or Auditor may not disclose to any third party 
whatsoever any information concluded under Clause (4) above without obtaining the 
CBUAE's written approval, except fo r the disclosure that is based on a court order.  
  
 
 
  
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Article (29) 
 Financial Reports  
1. The Company shall provide the CBUAE with a detailed annual report on its operations 
signed by the board chairman, the Authorized Manager or authorized signatories of the 
Com pany, including the annual financial statements, financial reports reflecting detailed 
profits and losses of the type of insurance carried out by the Company and each branch 
thereof and the Auditor's report, within a period not exceeding (3) three months f rom 
the end of the fiscal year. the CBUAE shall be delivered a copy of the report, at least (15) 
fifteen business days before inviting to the general meeting.  
2. The Company shall present the financial accounts and statements referred to in Clause 
(1) above o nly after obtaining the CBUAE's approval.  
3. The board chairman or Director General shall promptly notify the CBUAE if the 
Company is exposed to serious financial or administrative situations compromising 
rights of the Insured or Beneficiaries.

Article (30) 
 Insurance Policy Forms  
1. The Company shall provide the CBUAE with forms of the Insurance Policies and their 
approved annexes, including the general and special terms and conditions, the technical 
grounds of such policies and the Premiums rates annexed thereto, and shall provide the 
CBUAE with schedules of the redemption values of life Insurance Policies and funds 
accumulation operations and the premiums rates annexed thereto.  
2. Where the public interest requires or in case of imperf ection that may compromise the 
interests of Policyholders, the CBUAE may request the Company to introduce an 
amendment to the forms of Insurance Policies and their approved annexes, within the  
Federa l Decree Law of 2023 Regulating Insurance Activities  21 
 period determined the CBUAE for such purpose.  
3. The Company shall  provide the Insured and the Beneficiaries with copies of the 
Insurance Policies and the annexes thereof after the amendment is introduced, within 
the time limit set the CBUAE.

Article (31) 
 Disclosure and Transparency  
The Companies shall comply with the  principles of disclosure and transparency while dealing 
with the Insured and the Beneficiaries and in all policies, documents, leaflets, advertisements, 
publicity, articles and scientific materials issued by them, which are regulated by a resolution 
by th e Board.

Article (32)  
Auditor  
1. The Company's Auditor shall submit a prompt report to the CBUAE, with a copy thereof 
to the Company's board chairman in any of the following cases:  
a. If they found out that the financial position of the Company does not enable it to 
fulfill its obligations vis -a-vis the Insured or Beneficiaries or hinders its capacity to 
fulfil the financial requirements set forth in this Decree -Law and the resolutions, 
regulations, statutes and instructions issued thereunder related to t he financial 
position of the Company;  
b. If they found out that there is grief imperfection in the Company's performance of its 
financial procedures, including entering data in its accounting records, and the 
existence of material deficiencies in the internal  controls that could pose a threat to 
its financial position and stability;   
Federa l Decree Law of 2023 Regulating Insurance Activities  22 
 c. If they refuse or have reservations in respect of any certificate or statement issued by 
the Company related to its income or financial statements;  
d. If they fail to express their op inion on the Company's financial statements due to 
material misrepresentations or fraud;  
e. If they find out that the Company does not comply with the laws, resolutions, 
regulations, statutes and instructions related to the Company's financial statements; 
and  
f. If they decide to resign or their reappointment to the Company is rejected.  
2. the CBUAE may request the Auditor to furnish it directly, within a specific period, with 
the information needed to monitor the Company's operations.  
3. When the Audito r recommends that the financial statements filed thereto by the board 
of directors be rejected, the Company's general meeting shall decide the following:  
a. To return the financial statements to the Company's board of directors and ask the 
latter to correct t he statements according to the Auditor's observations and are 
deemed approved after the observations are corrected.  
b. To refer the subject to the CBUAE to appoint a committee of expert Auditors and fix 
their remunerations to be charged by the Company to adju dicate the subject matter 
of the dispute between the Company's board of directors and its Auditor. Having 
been presented again to, and approved by the general meeting, the Committee's 
decision shall be binding and the financial statements shall be adjusted  as per the 
committee's decision.  
  
 
 
 
  
Federa l Decree Law of 2023 Regulating Insurance Activities  23 
 Chapter Seven  
 Measures, Sanctions and Grievance

Article (33)  
Measure and Sanctions  
1. the CBUAE may conduct regular inspection of the Companies to ensure the soundness of 
their financial positions and their compliance with the provisions of this Decree -Law and 
the technical bases of carrying out insurance and reinsurance operations. To that end, 
the CBUAE may verify that the Company complies with the following:  
a. Its fulfillment of its obligations and that the CBUAE shall not be held liable for its 
failure to do so or its inability to continue in business;  
b. The Company does not commit any violation of the provisions of this Decree -Law or 
the resolutions, regulations, statutes or instructions issued in pursuance t hereof;  
c. The adequacy of measures taken by the Company on the reinsurance of risks 
assumed by the same;  
d. Compliance with the license conditions necessary to engage in insurance business;  
e. The Company's total losses shall not exceed (50%) fifty percent of its paid -up capital; 
and  
f. It shall not cease to conduct its business without legitimate justification.  
2. Where the Company fails to comply with any provisions of Clause (1) above, the CBUAE 
may impose whatever measures or sanctions it deems appropriate, and i t may impose 
one or more of the following actions:  
a. Serving a notice describing the nature of violation, procedures for remedying it and a 
mechanism for regularization.  
b. Requesting the Company or the headquarters of a foreign insurance company, as the 
case m ay be, to take the necessary measures to regularize the administrative  
Federa l Decree Law of 2023 Regulating Insurance Activities  24 
 situations therein, including deposing the Company's Director General, Authorized 
Manager or any Senior Employee thereof.  
c. Deposing the Company's chairman and any board member proved to be responsible 
for the current status of the Company.  
d. Forming a neutral committee of experts to replace the Company's board of directors 
for a period not exceeding (6) six months, renewable for similar period(s), if 
necessary, and in all cases th e total periods may not exceed (24) twenty four months, 
defining its functions and appointing its members, chairman and vice -chairman. The 
Company shall bear the committee's fees, as determined the CBUAE. The procedures 
for electing and forming a new board  of directors shall be proceeded pursuant to the 
provisions of Federal Decree -Law No. (32) of 2021, referred to hereinabove, at least 
(30) thirty days before the expiry of the committee's work.  
e. Taking the necessary actions to merge the Company into another  Company, subject 
to the approval of the Company into which it will be merged.  
f. Preventing the Company from concluding new Insurance Contracts or preventing it 
from carrying out one or more type of insurance.  
g. Setting out a threshold limit for the total amou nts of Premiums that the Company 
receives from the Insurance Policies issued by the same.  
h. Maintaining assets in the State equivalent in value to all net obligations arising from 
its business in the State, or a certain percentage of its value determined the  CBUAE.  
i. Restricting the Company's engagement in any of its investment activities related to 
the Solvency Margin ratio, or obliging it to liquidate its investments in any of such 
activities for such purpose, unless the same would cause harm to the Company, as 
determined by the specialized expert.  
j. Appointing an independent supervisory member from outside the CBUAE to attend 
the Company's board meetings and participate in discussions, without having a vote,  
Federa l Decree Law of 2023 Regulating Insurance Activities  25 
 during decision -making, and the Board shall determine his functions and fees.  
k. Suspension of the Company's license.  
l. Revocation of the Company's license.  
m. Restructuring of the Company.  
n. Liquidation of the Company.  
o. Imposing a fine on the Company not exceeding (AED 100,000,000) one hundred 
million dirhams.  
3. The provisions of Clauses (1) and (2) above shall apply to the Insurance -Related 
Professionals, as commensurate with the nature of their professions.  
4. The measures set out in Clause (2) above shall be imposed by virtue of a resolution of 
the Govern or, other than the measures referred to in Paragraphs (e), (l), (m) and (n), 
which shall be imposed by a resolution of the Board.

Article (34) 
 List of Violations and Fines  
The Board shall issue a list of violations committed by the Companies and the Ins urance -
Related Professionals, pursuant to the provisions of this Decree -Law and the fines imposed 
thereon.

Article (35) 
 Filing Grievances Against CBUAE's Decisions  
1. A grievance committee shall be established by the CBUAE to consider grievances filed 
against decisions, measures and administrative sanctions issued pursuant to the 
provisions of this Decree -Law. The Board shall issue the necessary decisions on the 
formation of the committee, rules of procedure, remunerations of its members, experts  
Federa l Decree Law of 2023 Regulating Insurance Activities  26 
 to be engaged and all matters related thereto.  
2. Save as regulatory and supervisory policies, resolutions, regulations, directives and 
instructions. The committee referred to in Clause (1) above shall decide on grievances 
against the CBUAE's decisions, pursuant to  the provisions of this Decree -Law and the 
resolutions issued in pursuance thereof.  
3. A grievance against a the CBUAE's decision shall be made within (20) twenty business 
days from the date of notification of the decision in accordance with the mechanism 
determined by the Board. The committee shall not accept grievances submitted after this 
time limit.  
4. Decisions falling within the competence of the Committee, pursuant to the provisions of 
this Article, may not be challenged before courts before a grievance ag ainst them is filed 
and decided.  
5. No grievance may be filed before the committee set out in Clause (1) above against 
decisions issued the CBUAE, pursuant to the provisions of Clause (2) of article (41) 
hereunder.

Article (36) 
Inspection  
1. the CBUAE may assign any of its employees or any other licensed or authorized Person 
to inspect the Company or any other Company owned by such Company or is affiliated 
thereto, in order to ensure the soundness of its financial position and its compliance with 
the provis ions of this Decree -Law and the resolutions, regulations, statutes and 
instructions issued in pursuance thereof, as well as other laws and regulations in force in 
the State.  
2. the CBUAE shall coordinate with the relevant regulatory authority in case of the 
inspection of Companies owned by the Insurance and Reinsurance Companies,  
Federa l Decree Law of 2023 Regulating Insurance Activities  27 
 Insurance -Related Professionals or associated Companies, which are governed by the 
regulatory authorities.  
3. the CBUAE may, in coordination with the relevant authorities in the State, i nspect 
premises of any Person suspected to engage in any insurance and reinsurance business 
or the Insurance -Related Professions. To that end, the CBUAE may obligate the 
suspected Person to provide all information, documents and records related thereto and  
to seize them.  
4. The Companies and the Insurance -Related Professionals and companies owned by and 
affiliated to the same shall provide the inspector with whatever data, information, 
records, books, accounts and documents related to the subject of the inspec tion on the 
dates specified by him.  
5. The inspector may collect the necessary information and clarifications from any Person 
with whom the Company or the owner of the Insurance -Related Profession has a 
relationship with regard to the subject of the inspectio n. 
6. The inspector may summon any Person at the time and place specified by them to 
provide information, data, documents or records related to the inspection.  
7. the CBUAE may assign one of its employees or a specialized expert to guide the 
Company and the Insurance -Related Profession or supervise some operations within a 
specific period determined the CBUAE. If the expert is from outside the CBUAE, the 
Company and the Insurance -Related Profession shall pay his fees determined as 
determined the CBUAE.  
8. The Co mpany and the Insurance -Related Profession shall bear all expenses of inspection 
and investigation that another person is assigned to carry out, pursuant to the provisions 
of Clause (1) above, if it is proved that it violates the provisions of this Decree -Law and 
the statutes and resolutions issued in pursuance thereof.  
   
Federa l Decree Law of 2023 Regulating Insurance Activities  28

Article (37)  
Facilitation of Inspection  
The Companies and Insurance -Related Professionals or any of their managers or employees 
may not:  
1. Prevent, obstruct, or hinder any employee or any o ther Person assigned the CBUAE from 
carrying out inspection or audit under the provisions of this Decree -Law;  
2. Conceal any data, records or books requested the CBUAE or whoever is assigned to carry 
out inspection or audit; and  
3. Issue any statements or give any inaccurate or misleading data, records or books.  
  
Chapter  Eight  
 Funds of Insurance Companies

Article (38) 
 Bank Deposit Amount  
Every Insurance Company shall make a cash deposit in a bank operating in the State, as a 
security for implementing its obligations set forth in this Decree -Law, the amount of which 
shall be determined as follows:  
1. (AED 4,000,000) four million dirhams for person and fund accumulation insurance 
referred to in Clause (1) of article (4) above.  
2. (AED 6,000,000) six million dirhams for property and liability insurance referred to in 
Clause (2) of article (4) above.  
By virtue of a resolution of the Board, the amount of the deposit referred to in Clauses (1) and 
(2) above may be increased. The deposit shall be made to the order of the Governor.  
  
  
Federa l Decree Law of 2023 Regulating Insurance Activities  29

Article (39)  
Disposition of the Bank Deposit  
The deposit may only be disposed of for the payment of debts arising from insurance 
operations carried out by the Company; provided that a prior written authorization of the 
Governor or his representative is obtained.  
If the value of the deposit diminishes below the prescribed limit if it is disposed of, the 
Company shall replenish the deposit amount within a period not exceeding (30) thirty days 
from the date of the CBUAE's request to replenish the deposit amount.

Article (40) 
 Mathematical Reserve of the Company  
The Company that carries out the type of insurance referred to in Clause (1) of article (4) 
above must keep in the State funds whose value is at least equivalent to the full amount of 
the mathematical reserve of contracts concluded in the State or implemented therein. The 
Board may reduce the percentage of reserve the Company is required to keep.  
Such funds must be completely separated from the fun ds of other insurance operations. 
When calculating the aforementioned reserve, the deposit referred to in Clause (1) of Article 
(38) above shall be taken into account, so that whichever value is greater shall be applicable.  
  
Chapter Nine  
 License

Article (41)  
Approval and License  
1. No Company may be incorporated in the State, and no branch of a foreign Insurance 
Company may be opened and no new branch may be added without the approval of the 
CBUAE.   
Federa l Decree Law of 2023 Regulating Insurance Activities  30 
 2. No Person may engage in insurance business without having the relevant license issued 
the CBUAE, which may, as it deems appropriate for the need of the national economy, 
approve or reject the issuance of the license, and in case of rejection, the CBUAE shall be 
reasoned.  
3. The Board shall revoke the license if it has been issued based on false information.  
4. No unlicensed Company may issue the Insurance Policy. Any Insurance Policy 
concluded by an unlicensed Company shall be null and void, and a bona fide  affected 
party may claim compensation.  
5. The Board shall s et the controls and requirements necessary for implementing the 
provisions of Clauses (1) and (2) above.

Article (42) 
 Reinsurance Controls  
The Company may not reinsure with another Company unless the other Company is licensed 
to carry out the insurance type entrusted to reinsure it according to the regulations issued by 
the Board.

Article (43)  
Fiscal Year  
The fiscal year of the Company shall commence on 1st January and end on 31st December 
every year. However, the first fiscal year shall commence from the date of its registration in 
the Commercial Register and end on 31st December of the following year.  
  
 
  
Federa l Decree Law of 2023 Regulating Insurance Activities  31 
 Chapter Ten  
Suspension  and Revocation of the Company's License

Article (44)  
Cases of the Company's Suspension  
The Governor may suspend the Company from carrying out one or more types of insurance 
for a period not exceeding one year, while informing both the Company and the relevant 
authority of the suspension decision, in any of the following cases:  
1. In case the Company violates th e provisions of this Decree -Law or the resolutions, 
regulations, statutes or instructions issued thereunder;  
2. In case the Company lacks of any of the conditions required to be fulfilled in the license 
under the provisions of this Decree -Law;  
3. In case the Company fails to engage in business by carrying out any type of insurance 
covered by the license, or ceases to engage in such business for of one year;  
4. In case the Company is unable to fulfill its financial obligations; and  
5. In case the Company refrains fro m implementing a final court judgement related to the 
Insurance Policy;  
The Company that has been suspended from carrying out one or more types of insurance shall 
implement its obligations that had been arisen before the suspension decision is issued.

Article (45)  
Removal of Suspension or License Revocation Reason  
1. If the Company removes, within a period not exceeding one year from the date on which 
the suspension decision is issued, the suspension reason, the Governor shall issue a 
decision approving it to continue in insurance business, and the CBUAE shall inform the 
relevant authority and the Company of the decision.   
Federa l Decree Law of 2023 Regulating Insurance Activities  32 
 2. In the event that the time limit referred to in Clause (1) above expires and the Company 
fails to remove the suspension reason, the Board shall delicense the type of insurance 
subject of the suspension, and the CBUAE shall so inform the company and the relevant 
authorities.

Article (46)  
Impacts of Suspension or Revocation of the License  
1. The procedures related to the suspension of business or revocation of the license for one 
or more types of insurances under the decisions issued by the Board in this regard.  
2. The issuance of a decision to suspend the business or revoke the license for one or more 
types of insurance shall:  
a. Prohibit th e conclusion of Insurance Policies for one or more types of insurance 
subject of suspension or Revocation; and  
b. Consider all rights and obligations arising from Insurance Policies concluded before 
the suspension of business or revocation of the license effective and the Company 
shall be liable for the same.

Article (47)  
Relicensing the Company  
If the license revocation reason is removed, the Company may, within a period not exceeding 
one year from the date on which the revocation decision is issued, submit an application to 
the CBUAE for licensing, accompanied by the documents proving the removal of the license 
revocation reason. The Board may issue its decision on approval or rejection, provided that 
the decision is reasoned, and the CBUAE shall inform the Company and the relevant 
authorities of the decision.   
Federa l Decree Law of 2023 Regulating Insurance Activities  33

Article (48) 
 Rejection of Relicensing Application  
1. Where the Board rejects the relicensing application for all types of insurance, or if the 
Company fails to submit a rel icensing application, within the time limit referred to in 
article (47) above, the Company shall go into liquidation within a period not exceeding 
one month from the date of expiry of such period or from the date of being notified of 
the rejection decision . If the Company fails to go into liquidation, it shall be liquidated in 
accordance with the provisions of this Decree -Law.  
2. The Company shall be delicensed if a liquidation decision is issued against pursuant to 
the provisions of this Decree -Law, a final court judgement of its liquidation is rendered 
or is declared bankrupt under the legislation in force in this regard.  
  
Chapter Eleven   
Foreign Insurance Companies and Representation Offices of Foreign 
Insurance Companies

Article (49) 
 Branch of Foreign Insurance Company  
1. A foreign Insurance Company's branch shall appoint a manager to manage the branch, 
who is authorized by a document attested by the relevant authorities to exercise all the 
powers necessary to manage such br anch, including:  
a. Issuing Insurance Policies and annexes thereof and paying the compensations arising 
therefrom;  
b. Representing the Company's branch before the CBUAE, competent court and other 
relevant authorities; and  
c. Receiving communications, notices and all correspondence served to the Company.   
Federa l Decree Law of 2023 Regulating Insurance Activities  34 
 2. Before the engagement in Insurance Business, a foreign Insurance Company's branch 
shall submit an application to the CBUAE for licensing the branch; provided that the 
manager's appointment decision and the document  referred to in Clause (1) above shall 
be attached to the application.  
3. The foreign Insurance Company's branch shall notify the CBUAE of the Authorized 
Manager's name within one month from his appointment date, and shall appoint a 
substitute within one mont h from the date on which position becomes vacant.

Article (50) 
 Bank Guarantee  
The foreign Insurance Company's branch shall submit an irrevocable letter of bank guarantee 
in favor of the CBUAE, in an amount not less than (AED 100,000,000) one hundred mil lion 
dirhams in case of engagement in insurance activity, and an amount not less than (AED 
250,000,000) two hundred fifty million dirhams in case of engagement in reinsurance 
activity, in accordance with the instructions issued by the Board in this regard.

Article (51)  
Final Account  
The Foreign Insurance Company's branch shall provide the CBUAE with the total final 
account, and shall publish it in two local daily newspapers, one of which is published in 
Arabic.  
 
 
 
  
Federa l Decree Law of 2023 Regulating Insurance Activities  35

Article (52)  
Representation Offices of Foreign Insurance Companies  
1. Representation offices of foreign Insurance Companies may not carry out their activities 
related to insurance in the State before obtaining the relevant license from the CBUAE.  
2. the CBUAE shall issue a r esolution regulating the functions of such offices.  
3. The license shall be either accepted or rejected by virtue of a resolution of the Board, and 
the CBUAE shall so notify the relevant authorities.  
  
Chapter Twelve  
 Insurance Companies of Persons and Fund A ccumulation Operations

Article (53) 
 Policies Issued by Insurance Companies  
The Companies engaged in insurance business for persons and fund accumulation operations 
may not distinguish between the policies issued of the same type; in terms of insurance rat es, 
the amount of profits distributed to policyholders or other requirements, unless such 
distinguishment is generated from a difference in life chances for policies where the lifetime 
has an effect, except for:  
1. Reinsurance policies;  
2. Insurance Policies of amounts that enjoy certain discounts according to the price lists 
communicated to the CBUAE; and  
3. Insurance Policies that include special conditions on the life of members of a single 
family or a group of individuals related by a single professi on/job or any other social 
bond.  
  
  
Federa l Decree Law of 2023 Regulating Insurance Activities  36

Article (54) 
 Insurance Policy Rate Discount  
Based on the Company's request, the CBUAE may agree to issue policies at discounts less the 
normal prices if there are reasons that justify the same.

Article (55)  
Assessment of Value of Liabilities  
The Companies that engage in the insurance of persons and fund accumulation operations 
shall examine the financial position of this type and assess the value of its obligations at least 
once every (3) three years by an Actuary, as of the date of its engagement in business.  
This assessment shall cover all insurance operations concluded by the Company inside and 
outside the State separately. If the activity is carried out by a branch of a foreign Company, the 
assessment sh all be limited to the operations whose contracts were concluded in the State or 
carried out therein.

Article (56) 
 Examination of Financial Position  
The assessment referred to in article (55) above shall be made whenever the Company is 
desirous to examin e its financial position to determine the percentages of profits to be 
distributed to shareholders or policyholders, or whenever it is desirous to announce this 
position.  
the CBUAE may request that this assessment be made at any time before (3) three years ; 
provided that a period of not less than one year has elapsed from the date of the last 
examination.  
   
Federa l Decree Law of 2023 Regulating Insurance Activities  37

Article (57) 
 Data of the Actuary's Report  
The financial instructions of Insurance Companies issued by the Board, pursuant to this 
Decree -Law, shall set  the data required to be included in the Actuary's report on the result of 
the assessment and examination referred to in Articles (55) and (56) above.

Article (58) 
Attachments of the Actuary's Report  
The Company shall send to the CBUAE a copy of the Actuary's report on the result of the 
examination and assessment referred to in Articles (55) and (56) above, within six months 
from the expiry of the period for which the examination was conducted, accompanied by the 
following:  
1. A statement of effective In surance Policies concluded by the Company inside or outside 
the State on the date of conducting the examination. If the activity is carried out by a 
branch of a foreign Company, the statement shall be limited to the policies concluded or 
carried out in the  State.  
2. An acknowledgment by persons in charge of the Company's management that all data 
and information necessary to draw up a correct report have been placed at the disposal 
of the Actuary.  
Following the expiry of the six -month period, as referred to in this Article, an additional period 
may be given to the Company to submit this report; provided that this period does not exceed 
three months.  
  
 
  
Federa l Decree Law of 2023 Regulating Insurance Activities  38

Article (59)  
Reexamination of Financial Position  
If it becomes clear to the CBUAE that the Actuar y's report does not reflect the true financial 
position of the Company, the CBUAE may request a reexamination at the Company's expense 
by an Actuary selected the CBUAE for this purpose.

Article (60)  
Distributable Funds  
1. Companies that engage in the insur ance of persons and fund accumulation may not 
deduct, whether directly or indirectly, any part of their funds corresponding to their 
obligations arising from the Insurance Policies to distribute it as a profit to shareholders 
or Policyholders, or to pay an y amount beyond their obligations under the Insurance 
Policies issued by the same. The distribution of profits shall be limited to the amount of 
money in excess, as determined by the Actuary in their report, after conducting the 
examination referred to in article (57) above.  
2. For the purpose of applying the provisions of this Article, the Company's funds in the 
State and abroad may be considered as one unit, without prejudice to the provisions of 
article (23) above.

Article (61)  
Savings Bonds  
The Companies that engage in the insurance of Persons and fund accumulation may not issue 
savings bonds for a period exceeding (30) years. If the duration of a bond is (25) years or more, 
the value of its redemption after year (25) twenty fifth may not be less  than the amount of the 
full mathematical reserve. The Premiums to which savings bond holders are committed must  
Federa l Decree Law of 2023 Regulating Insurance Activities  39 
 be of equal or eroded value.

Article (62) 
 Data of Savings Bonds  
Savings bonds shall provide for the termination conditions that the Company invokes vis -à-
vis a bondholder due to their delay in paying the Premiums.  
However, the contract may be terminated before (3) three months from the due date of the 
Premium and the bondholder failed to pay the premium if the bond is nominal, such per iod 
shall apply from the date of notifying the bondholder under a registered letter.  
Such bonds shall provide for the devolution of right thereto to the Beneficiaries due to the 
bondholder's death, without imposing additional amounts or new requirements.  
the CBUAE shall determine other data that must be included in the savings bonds.

Article (63)  
Assessment of Insurance Policy Value  
In the event of the bankruptcy or liquidation of the Company engaged in the insurance of 
person or fund accumulation, the a mounts due to each holder of a policy not yet expired shall 
be assessed as equal to its mathematical reserve on the day on which the liquidation decision 
is issued or the bankruptcy declaration is ruled, calculated on the basis of the technical rules 
for d efining Premiums at the time of concluding the policy.

Article (64) 
 Insurance Companies Operating in Financial Free Zones  
Insurance Companies licensed to operate in the Financial Free Zones may not carry out any 
activity, other than the reinsurance, outside such zones in the State,   
Federa l Decree Law of 2023 Regulating Insurance Activities  40

Article (65) 
 Insurance -Related Professions  
No Person may practice as an Insurance Agent, Insurance Broker, Surveyor and Loss Adjuster, 
Insurance Consultant, Actuary, health insurance claims manager or any other professions 
related to insurance without having the license or permit to practice the profession and being 
registered in the register designated for such purpose, and in accordance with the conditions 
determined by the Board, which include determinin g the liability of Insurance -Related 
Professionals and organizing their business and the conditions of their registration in the 
register.  
  
Chapter Thirteen  
 Transfer of Insurance Policies and Cessation of Operations

Article (66)  
Transfer of Insurance Po licies from Company to Company  
The Company may transfer the Insurance Policies it has concluded in the State, including the 
rights and obligations related to any type of insurance carried out by the Company, to another 
Company or Companies that carries out  the same type of insurance.

Article (67)  
Insurance Transfer Application  
1. The transfer application shall be submitted to the CBUAE, accompanied by the 
documents related to the transfer agreement, and the transfer application shall be 
published in two local daily newspapers, one of which is published in Arabic, at the 
expense of the transfer applicant, or as per the mechanism determined the CBUAE;  
Federa l Decree Law of 2023 Regulating Insurance Activities  41 
 provided that the announcement shall refer to the right of policyholders, the 
Beneficiaries or any interest ed party to file any objection to the CBUAE to such transfer, 
within (10) business days from the date of the announcement; provided that the subject 
of their objection and the grounds thereof are determined.  
2. the CBUAE shall issue its approval of the transf er if no interested party objects thereto 
within the period referred to in Clause (1) above. The decision shall be published in the 
Official Gazette within one month from the date of its issuance, and it may be invoked 
vis-à-vis the Insured, the Beneficiar ies and the Company's creditors, and the funds shall 
be transferred to the Company to which the policies have been transferred, subject to 
the provisions relating to the transfer of ownership and assignment of funds; provided 
that the transferred funds are  exempted from the registration fees under the provisions 
relating to the transfer of ownership and assignment of funds.  
3. If an objection is submitted within the period referred to in Clause (1) above, the TIPS 
application shall be decided on only after an agreement is reached between the 
interested parties or a final judgement is rendered on such objection. However, the 
CBUAE may issue a decision approving the transfer; provided that a guarantee is 
submitted by the Company to the CBUAE equivalent t o its obligations vis -a-vis the 
objector, including the expenses that may be incurred for retaining any of the Company's 
assets.

Article (68)  
Cessation of Insurance Operations  
The provisions of Articles (66) and (67) above shall be applicable if any Compa ny is desirous 
to cease the engagement in one or more types of insurance, or is desirous to free up its funds 
required to be exist in the State for such type or types, after the Company provides a proof 
that it has fulfilled its obligations for all policie s concluded within the State or carried out 
therein, pertaining to such type or types regarding which it decided to cease its operations.   
Federa l Decree Law of 2023 Regulating Insurance Activities  42 
 Chapter Fourteen  
Takaful Insurance Company

Article (69) 
 Takaful Insurance Business  
1. The provisions of this Decree -Law and the resolutions, regulations, statutes and 
instructions issued thereunder shall apply to Takaful Insurance Companies, in so far as 
they do not contradict the nature of its business, and they may not engage in insurance 
business in such a man ner that violates the provisions and principles of the Islamic 
Sharia, which must be reflected in its memorandum of association and articles of 
association.  
2. The Board shall issue a regulation setting out aspects of activities and the rules and 
standards of  the Takaful Insurance Company's business in a manner that is appropriate 
with the nature of the license granted thereto.

Article (70)  
Takaful Insurance Fund  
Takaful Insurance Company shall establish a fund that has an independent legal personality, 
in accordance with the controls and procedures identified under a resolution by the Board, 
which shall report to the CBUAE, in which contribution amounts and their investment returns 
are deposited, in addition to the Takaful reinsurance contri butions or the equivalent thereof 
and their revenues. The fund shall bear all expenses and costs of insurance operations, and 
shall be liable for the compensation under the provisions of Takaful Insurance Policies.  
  
 
  
Federa l Decree Law of 2023 Regulating Insurance Activities  43

Article (71)  
Higher Sharia Board  
1. The S upreme Sharia Board shall set the Sharia rules, standards and principles for Takaful 
Insurance Companies business, and shall control and supervise of internal Sharia 
supervisory committees referred to in article (72) hereunder.  
2. Takaful Insurance Companies shall bear the expenses of the Higher Sharia Authority, 
including the allocations, remunerations and expenses of its members, pursuant to the 
articles of association of the Supreme Sharia Board.  
3. Takaful Insurance Companies and the internal Sharia superviso ry committees shall 
comply with fatwas and opinions issued by the Higher Sharia Authority.

Article (72)  
Internal Sharia Supervisory Committee  
1. An independent internal Sharia supervisory committee shall be formed in every Takaful 
Insurance Company called "the Internal Sharia Supervisory Committee", comprising 
experts and specialists in Islamic financial transactions jurisprudence. Such committee 
shall supervise and approve all business, activities, products, services, contracts, 
documents, and chart ers of the Company's business, and shall set the necessary Sharia 
controls for the same under rules, principles and standards set by the Supreme Sharia 
Authority, in order to ensure their compliance with the provisions of the Islamic Sharia. 
Fatwas or opin ions issued by the committee shall be binding on the Company.  
2. The general meeting of the Takaful Insurance Company shall be authorized to appoint 
members of the internal Sharia Supervisory Committee, pursuant to provisions of 
Decree Law No. (32) of 2021, r eferred to hereinabove, and the names of the members of 
the Internal Sharia Supervisory Committee shall be presented to the Supreme Sharia  
Federa l Decree Law of 2023 Regulating Insurance Activities  44 
 Board to approve the same before being presented to the general meeting and a decision 
is issued approving the appoin tment.  
3. Members of the Internal Sharia Supervisory Committee may not occupy any executive 
position in a Takaful Insurance Company, provide it services beyond the scope of the 
Committee's work, act as shareholders in it or have or their relatives up to the s econd 
degree have any interests related thereto.  
4. Should a dispute is raised over a Sharia opinion between members of the Internal Sharia 
Supervisory Committee, or there is a disagreement regarding a Sharia matter between 
the Internal Sharia Supervisory Com mittee and the Company's board of directors in 
question, the matter shall be referred to the Supreme Sharia Board, whose opinion shall 
be final in this regard.  
5. An internal department shall be established in every Takaful Insurance Company for the 
internal Sharia supervision and to monitor the Company's compliance with fatwas and 
opinions of the Internal Sharia Supervisory Committee. This department shall report 
directly to the Company's Board of Directors, and its employees shall have no powers or 
executive  responsibilities vis -a-vis the business, activities and contracts reviewed or 
supervised by them from a Sharia viewpoint.

Article (73)  
Report of Internal Sharia Supervisory Committee  
1. The Internal Sharia Supervisory Committee shall draw up an annual report, as per the 
form determined by the Supreme Sharia Authority, showing whether Takaful Insurance 
Company's management complies with the application of the provisions of Islamic 
Sharia in the business and activities it engages in, products provi ded and contracts 
concluded by it, and documents used by it.  
2. The Internal Sharia Supervisory Committee's report shall be submitted to the Supreme  
Federa l Decree Law of 2023 Regulating Insurance Activities  45 
 Sharia Authority for approval before being presented to the general meeting.  
  
Chapter Fifteen   
Provisions of Control, Ownership and Merger of the Company

Article (74)  
Controlling Stakes  
1. No Person may, whether solely or jointly with related parties, own a controlling stake or 
increase the controlling stake in the Company or exercise powers rendering him as the 
owner of a controlling stake, without obtaining the approval of the CBUAE.  
2. If it is established that a Person has violated the provision of Clause (1) above, the 
CBUAE may impose one or more of the following measures:  
a. Serving a violati on notice and giving the violator a time limit for regularization, in 
accordance with the mechanism determined the CBUAE;  
b. Depriving the violator of profits or benefits, in so far the violation is committed;  
c. Preventing the violator from voting in the Compan y's general meeting or running for 
membership of the Company's board of directors until the regularization is made or 
the implementation of the procedure determined the CBUAE;  
d. Suspending or revoking the violator's membership if he is a member of the 
Compan y's board of directors;  
e. Preventing the violator from disposing of the percentage that exceeds the controlling 
stake without obtaining the prior written approval of the CBUAE; and  
f. Any other measures decided by the Board.  
3. The Board shall issue the regulations and instructions pertaining to determining parties 
related to ownership percentages in the Companies' capitals and restrictions to shares 
and cases of control, pursuant to the provisions of Federal Decree -Law No. (32) of 2021,  
Federa l Decree Law of 2023 Regulating Insurance Activities  46 
 referred to herei nabove, or any other superseding law.

Article (75) 
 Ownership of Insurance Company's Shares  
An Insurance Company may, whether directly or jointly with associated Persons, own shares 
of another Insurance Company or bonds convertible to shares only in acco rdance with the 
controls and instructions issued by the Board in this regard.

Article (76) 
 Controls of Merger and Acquisition  
1. A Company may merge with, or acquire any other Company, regardless of its activity, 
and may transfer any part of its obligations to another Person only after obtaining the 
prior approval of the CBUAE.  
2. Subject to the legislation in force in the State on merger and acquisition, the Board may 
issue the regulations, statutes, instructions and rules related to merger and acqu isition.  
  
Chapter Sixteen   
Unbalanced Financial Position

Article (77)  
Restructuring  
1. The Board shall set a framework for restructuring and liquidating the Companies, 
including the controls, conditions and rules in this regard to reduce the impacts that may 
be caused from the imbalance in its financial position.  
2. the CBUAE may request the relevant authorities in the State to temporarily impound the 
Company that suffers from an imbalance in its financial position and seize on its assets,  
Federa l Decree Law of 2023 Regulating Insurance Activities  47 
 property and r ights of its shareholders, issue a decision requesting the competent court 
to liquidate or dissolve the Company in question and develop a plan to liquidate or 
transfer its assets, liabilities, settlements and clearances, as the CBUAE deems 
appropriate, and  implement or supervise the implementation of the liquidation plan, 
take a decision on the restructuring or submit a request for a bankruptcy declaration to 
the competent court, pursuant to the legislation in force in this regard.  
3. the CBUAE may coordinate with the relevant authorities of the State before the Board 
issues any decisions in accordance with the provisions of this Article, whenever it deems 
necessary. the CBUAE may request the competent judicial authorities to take 
precautionary and e xpeditious measures and procedures and any other measures that 
would protect policyholders, creditors, shareholders and their interests, or as dictated by 
the public interest.

Article (78) 
 Restructuring Committee  
1. For the purposes of restructuring the Com pany pursuant to the provisions of Paragraph 
(m), Clause (2) of article (33) above, the Board may issue a decision dissolving the 
Company's board of directors and forming a neutral committee to restructure the 
company in accordance with Paragraph (d), Clau se (2) of article (33) above. The 
committee shall submit a monthly report, or whenever so requested, to the CBUAE on 
the progress of the restructuring procedures.  
2. For such purpose, the restructuring includes managing the Company and organizing its 
distress ed financial affairs by negotiating with all its creditors for determining the 
Company's debts and how to be repaid by adopting a plan for the restructuring.  
3. The committee referred to in Clause (1) above shall publish an announcement in The 
Official Gazett e for (3) three consecutive business days in two local daily newspapers,  
Federa l Decree Law of 2023 Regulating Insurance Activities  48 
 one of them is published in Arabic, at the expense of the Company, which shall include 
an invitation to all creditors to submit statements of the amount of their debts, 
supported by d ocuments, within a period not exceeding (30) thirty days from the date of 
publishing the last announcement. No statements submitted by any creditor may be 
accepted following the lapse of such period.

Article (79) 
 Cases of Suspending Attachment or Enforcement Against the Company's 
Property  
1. Subject to the provisions set forth in any other legislation, the enforcement of any 
attachment on the Company's property or assets, whether precautionary or enforcement 
attachme nt, or any disposition of, or enforcement created against such property or assets 
shall be suspended from the date of issuance of the restructuring decision until any of 
the following cases are realized:  
a. Expiry of the work period of the committee referred to in Clause (1) of article (78) 
above;  
b. Issuance of a decision by the Board, pursuant to the provisions of the Decree -Law, 
rejecting the restructuring plan;  
c. Creditors' rejection of the restructuring plan, pursuant to provisions of this Decree -
Law; and  
d. Issuance of a decision by the Board to discontinue the restructuring procedures, 
pursuant to the provisions of this Decree -Law.  
2. The calculation of the dates for dismissal of a case for the lapse of time shall cease, as 
regard to the procedure referred to i n Clause (1) above.  
   
Federa l Decree Law of 2023 Regulating Insurance Activities  49

Article (80) 
 Report of the Committee  
1. The committee referred to in Clause (1) of article (78) above shall draw up its report on 
the restructuring plan within a period not exceeding (15) fifteen days from the date of 
consolidation of d ebts and invite creditors to approve the plan under an announcement 
to be published in two local daily newspapers, one of which is published in Arabic, 
provided that the plan is approved by creditors representing at least three -fourths of 
non -preferred deb ts and unsecured by a pledge.  
2. In the event that the creditors approve the plan, in accordance with the provisions of 
article (a) of this Article, the committee shall submit this plan to the CBUAE and then be 
submitted to the CBUAE and then to the Board for  approval.  
3. In the event that creditors reject the plan prepared in accordance with the provisions of 
Clause (1) above, the Committee shall submit a report on the same to the CBUAE, which 
shall submit it along with its recommendations to the Board.  
4. The Board may take the appropriate decision on the plan submitted in accordance with 
the provisions of Clause (1) above. In the event that the Board approves the plan, the 
restructuring procedures shall be proceeded with, and in case of rejection, the Board 
decides to take the appropriate action, pursuant to the provisions of Clause (2) of Article 
(33) of this Decree -Law.  
5. After completing the restructuring, a new Board of Directors of the company will be 
elected, pursuant to the provisions of the legislation in  force in the State.  
  
 
  
Federa l Decree Law of 2023 Regulating Insurance Activities  50

Article (81)  
Discontinuance of Restructuring Procedures  
If the Board finds out that the Company's positions are distressed, despite the application of 
the restructuring plan or the futility of this plan, it may decide to discontinue  the progress of 
the restructuring procedures and take the appropriate action, in accordance with the 
provisions of Clause (2) of article (33) above.

Article (82)  
Appointment of Liquidator  
1. Notwithstanding the provisions of Federal Decree -Law No. (32) of 2021, referred to 
hereinabove, the provisions contained in this Decree -Law and the regulations and 
resolutions issued thereunder shall apply to the Company's liquidation. The liquidation 
shall be carried out by one or more liquidators appointed by the general meeting under a 
special decision. If the liquidation is based on a court judgment, the court shall indicate 
the method of liquidation and appointment the liquidator. The liquidator's appointment 
decision shall specify his fees and powers, along  with obliging him to provide a 
guarantee if necessary. If the liquidator's fees are not determined in the appointment 
decision, they shall be determined by the competent court.  
2. The decision of appointing the liquidator shall be announced by registration in the 
Commercial Register, and such announcement shall be published in two local daily 
newspapers, one of which is published in Arabic, within a period not exceeding seven (7) 
days from the date of the announcement. Such appointment may be in voked vis -à-vis 
third parties only from the announcement date.  
3. The authority of the Company's board of directors shall end when the Company goes  
Federa l Decree Law of 2023 Regulating Insurance Activities  51 
 into liquidation. In the course of liquidation, the Company shall retain the legal 
personality to the extent ne cessary for the liquidation proceedings. The powers of the 
Company's organizational units and affiliates shall be limited to the liquidation 
proceedings that do not fall within the powers of liquidators.

Article (83) 
 Challenging the Liquidator Appoin tment Decision  
1. Any stakeholder may challenge the decision issued by the Company's general meeting 
on the liquidator's appointment before the competent court, within (40) forty days from 
the date announcing the appointment decision.  
2. The challenge referred t o in Clause (1) above may not discontinue the liquidation 
proceedings, unless otherwise decided by the court.

Article (84)  
Removal of Liquidator  
The liquidator shall be removed based on the appointment method, and any decision or 
judgment on the liquidator's appointment shall include the appointment of a replacement. 
The liquidator's removal shall be published in two local daily newspapers, one of which is 
published in Arabic. Such removal may be invoked vis -à-vis third parties only from the 
annou ncement date.

Article (85)  
Implications of Liquidation Decision  
The issuance of the liquidation decision shall give rise to the following:  
1. The liquidator adds the phrase "under liquidation" next to the name of the Company in  
Federa l Decree Law of 2023 Regulating Insurance Activities  52 
 all its documents and corres pondence;  
2. Discontinuation of any authorization or signatory power issued by any entity, and the 
liquidator shall be exclusively competent to grant any authorization or signatory power 
required by the liquidation proceedings;  
3. Discontinuation of the calculation of the lapse of time that leads to the dismissal of the 
case with regard to any rights or claims due or existing in favor of the Company for a 
period of one year from the date of issuance of the liquidation decision;  
4. Discontinuation of cases an d proceedings brought by or against the for a period of six (6) 
months, unless the court decides to proceed with such cases before the expiry of the 
same, subject to the provisions of Clause (5) of this Article; and  
5. Discontinuation of any procedural or exe cutive transactions against the Company, 
unless such transactions are based on the request of a pledgee and related to the 
pledged property, in such case, such transactions shall be discontinued or their 
acceptance shall be prevented for a period of (6) si x months from the date on which the 
liquidation decision is issued.

Article (86)  
Decisions and Procedures Necessary for Liquidation  
The liquidator may issue whatever decisions he deems appropriate and take whatever actions 
he deems necessary to complete  the liquidation, including:  
1. Managing the Company's business to the extent required by the liquidation;  
2. Making a record of all the Company's assets, in agreement with the Company's board of 
directors, which is bound to deliver to the liquidator the Company's property, books and 
documents;  
3. Appointing any experts and specialists to help him to complete the liquidation 
procedures, or appointing special committees and delegating them any of the tasks and  
Federa l Decree Law of 2023 Regulating Insurance Activities  53 
 powers vested in him; and  
4. Appointing one or more l awyers to represent the Company under liquidation in any 
cases or proceedings related thereto.

Article (87) 
 Protecting the Company's Rights  
1. The liquidator may take all actions that he deems necessary to protect the rights of the 
Company, including:  
a. Revoki ng any disposition or terminating any contract concluded by the Company, or 
recovering any amount it has paid during the three months preceding the issuance of 
the liquidation decision if its involves giving preference to a certain person over the 
Company' s debt. The period shall be one year if the company has an ownership or 
association relationship with that person. The preference shall be realized if the 
action or procedure is unpaid or partially paid, or if it involves valuing property or 
rights less th an its real value or contrary to its value prevailing in the market.  
b. Revoking any disposition or terminating any contract concluded by the Company 
with any Person who has an ownership or association relationship with it, or recover 
any amount paid by the Company to either one, within the (3) months prior to the 
issuance of the liquidation decision.  
c. Agreeing with any of the Company's debtors on how to pay or pay in installments 
any amounts or obligations incurred by them.  
d. Terminating the employment of a ny of the Company's employees and paying their 
dues.  
e. Terminating any contract concluded by the Company with any Person before the 
expiry thereof.  
2. The liquidator shall take any of the procedures referred to in Clause (1) above by 
notifying the Person under a written notice. However, this procedure may be challenged  
Federa l Decree Law of 2023 Regulating Insurance Activities  54 
 before the competent court, within whose jurisdiction the Company's head office is 
located, within (30) days as of the date of notifying such Person.

Article (88) 
 Nullity of Pledges and Collaterals  
1. All pledges, mortgages and collaterals created over any property or rights of the 
Company during the (3) three months preceding the date of the issuance of the 
liquidation decision shall be null and void. Such a period shall be one year if the pledges 
or collaterals are in favor of a Person who has an ownership with, or is related the 
Company.  
2. Any decision of attachment at any property or right of the Company before the issuance 
of the liquidation decision shall b e null, unless this decision is issued based on a 
pledgee's request and is related to the pledged property.

Article (89)  
Person Related to the Company  
For the purposes of Articles (87) and (88) above, a person is deemed related to the Company 
in any of the following cases:  
1. If the Person is a member of the Company's board of directors, a manager at the 
Company or has a joint business interest with either one; or  
2. If he/she is a spouse of a member of the Company's board of directors or a manager 
thereat or has a joint business interest with either one.  
  
 
  
Federa l Decree Law of 2023 Regulating Insurance Activities  55

Article (90)  
Acts of the Liquidator  
Subject to the provisions of the legislation in force in the State, the liquidator may repay the 
Company's debts and may sell their property, whether movable or real property, at public 
auction or by any other means, unless it stipulated in his appointment document that the sale 
must be carried out in a specific way. However, the liquidator may sell the Company's assets 
as a whole only by a special decision of the  general meeting.

Article (91)  
Notification of Creditors  
1. Subject to the provisions relating to the Insured and the Beneficiaries of the Insurance 
Policies, the liquidator shall, within (30) days from the date of the issuance of the 
liquidation decision, publish a prominent announcement at a prominent place in two 
local daily newspapers, one of which is published in Arabic, to notify creditors to submit 
their claims against the company, whether payable or unpayable claims, within two 
months if they are res idents in the State and three (3) months if they reside abroad.  
2. The announcement shall be republished in the same manner promptly after the 
expiration of a period of (14) fourteen days from the date of publication of the first 
announcement. The statute of limitations for claims shall be calculated from the date of 
publication of the first announcement.  
3. If the liquidator or the competent court is satisfied that there is a legitimate excuse for a 
creditor for his failure to submit his claim within the period referred to in Clause (1) 
above, such period may be extended for further (3) three months maximum.  
4. The period from the issuance of the liquidation decision to the publication of the  
Federa l Decree Law of 2023 Regulating Insurance Activities  56 
 announcement referred to in Clause (1) above shall not be calculate d within the period 
prescribed for case dismissal on any rights or claims of creditors against the Company 
under liquidation.

Article (92) 
 Notices Issued by the Liquidator  
1. Subject to the provisions of Clause (2) below, the liquidator shall, within three  (3) 
months from the date of issuance of the liquidation decision, issue the below notices, 
unless he finds justifiable reasons to exceed such period; provided that the total period 
does not exceed six (6) months:  
a. A notice with acknowledgment of receipt to  each Insured or Beneficiary of the 
Insurance Policy of the amount of their rights and obligations.  
b. A notice of claim with acknowledgment of receipt to each debtor of the amount of 
his debts and obligations vis -a-vis the Company.  
2. An objection to the notice referred to in Clause (1) above may be filed to the liquidator 
within (30) days from the date of notification. If no objection is made during such period, 
the Insured, Beneficiary debtor shall be considered to have acknowledged the content of 
the no tice.  
3. The time limit prescribed for hearing a case shall be interrupted under the provisions of 
Clause (2) above.  
4. If the claim notice issued by the liquidator to a debtor, pursuant to the provisions of 
Paragraph (b) of Clause (1), becomes final, the liquid ator may make a settlement with 
the debtor or execute the notice against him under the provisions of the legislation in 
force in this regard.  
   
Federa l Decree Law of 2023 Regulating Insurance Activities  57

Article (93)  
Decisions Issued by Liquidator  
1. The liquidator shall issue his decisions on the claims and objectio ns submitted to him, 
pursuant to the provisions of article (92) above, within a period not exceeding (6) six 
months from the date of submission.  
2. If the liquidator fails to issue his decision within the period referred to in Clause (1) 
above, the claims and  objections shall be deemed to be rejected de jure.  
3. Any stakeholder may challenge the liquidator's decision issued pursuant to the 
provisions of Clauses (1) and (2) above before the competent court within whose 
jurisdiction the Company's head office is located, within a period of (30) thirty days from 
the date of being notified of the decision or from the date of the expiry of the period 
referred to in Clause (1) above, whichever is shorter.

Article (94)  
Precautionary Attachment  
Notwithstanding the pr ovisions of any other legislation, the liquidator may file a motion to 
the competent court to impose a precautionary attachment at any property belonging to the 
Company's debtors, may or take any precautionary or expeditious measures against them, 
pursuant  to the provisions of the legislation in force, taking into account the following:  
1. The liquidator shall be exempted from depositing a security such motion; and  
2. The liquidator shall have issued a notice of claim to the debtor upon filing the 
aforementioned  motion, or shall issue it within (8) eight days subsequent to the issuance 
of the decision. This notice shall be an alternative to the substantive action required to 
be filed pursuant to the provisions of the Federal Civil Procedure Law.   
Federa l Decree Law of 2023 Regulating Insurance Activities  58

Article (95) 
 Instituting a Case Against the Company  
1. After the liquidation decision is issued, a creditor, debtor, Insured or Beneficiary may 
institute a case against a Company under liquidation only in accordance with the 
grounds and procedures referred to in this Decree -Law.  
2. Subject to the provisions of Clause (1) of this Article, a Person affected by the liquidator's 
actions or procedures may challenge the same before the competent court within whose 
jurisdiction the Company's head office is located, pursuant to t he provisions of the 
legislation in force in this regard. The court may confirm, nullify or amend such actions 
and procedures, and may order the liquidator to take actions he is required to take.

Article (96)  
Repayment of Debts  
Debts owed by the Company  under liquidation shall be paid according to the following order:  
1. Rights of employees and workers payable for the last (4) four months;  
2. Liquidator's fees, expenses incurred and the loans he obtained for the purposes of 
completing the liquidation;  
3. Rights of the Insured and the Beneficiaries of the Insurance Policies, and the liquidator 
shall allocate the Company's assets, which represent the technical provisions required to 
be retained under the provisions of this Decree -Law, to pay such obligations , and any 
amount collected by the Company under the reinsurance arrangements shall constitute 
part of the technical provisions;  
4. Rights of other creditors, as per the order of priority under the provisions of the 
legislation in force in this regard; and   
Federa l Decree Law of 2023 Regulating Insurance Activities  59 
 5. Sha reholders' rights.

Article (97)  
Submitting a Provisional Account for Liquidation Proceedings  
1. The liquidator shall submit to the general meeting, every (6) six months, a provisional 
account for the liquidation proceedings, and shall provide the informati on or data 
requested by partners on the liquidation status, and shall complete his mission within 
the period specified for the liquidation in his appointment decision. If no period is 
specified, each partner may refer the matter to the competent court to d esignate the 
liquidation period.  
2. The liquidation period may be extended only by a decision of the general meeting after 
reviewing a report by the liquidator stating the reasons why he failed to complete the 
liquidation on time. If the period of liquidation  is specified by the court, it may be 
extended only with its permission.

Article (98) 
 Final Account of Liquidation Proceedings  
1. Upon the completion of liquidation, the liquidator shall submit to the general meeting a 
final account on the liquidation proceedings, and such proceedings shall complete upon 
the ratification of the final account.  
2. The liquidator shall announce the completion of the liquidation by registering the same 
in the Commercial Register and publishing it in two local daily  newspapers, one of which 
is issued in Arabic, and the same may be invoked vis -à-vis third parties only from the 
date of this announcement. Upon the completion of the liquidation, the liquidator shall 
submit a request for striking the Company off the Comme rcial Register.   
Federa l Decree Law of 2023 Regulating Insurance Activities  60

Article (99)  
Communication of Notifications and Reports  
1. Any notification or decision issued by the liquidator under the provisions of this Decree -
Law shall be communicated to the relevant Person in person or his legal representative, 
or may be sent by registered mail with acknowledgment of receipt to his last address 
kept with the Company under liquidation.  
2. Any notification sent pursuant to this Article shall be deemed to have been duly 
delivered to the recipient should such Person refuses to receive it.  
3. If the communication is not possible, pursuant to the provisions of Clause (1) above, the 
liquidator shall carry out the communication through publication in two local daily 
newspapers, one of them is published in Arabic, for at leas t two times, and the relevant 
Person shall bear the publication expenses, and this publication shall be considered 
notification to him.  
  
Chapter Seventeen  
 General Provisions

Article (100) 
 Emirates Insurance Union  
1. Pursuant to the provisions of this Decree -Law, a professional union shall be established 
called (Emirates Insurance Union), which shall have the legal personality and legal 
capacity necessary to carry out all actions and acts that enable it to achieve its objectives.  
2. All Companies and Insur ance -Related Professionals shall become a member of the 
Emirates Insurance Union, in accordance with the controls and procedures determined 
under a resolution by the Board. The Union shall establish committees for various  
Federa l Decree Law of 2023 Regulating Insurance Activities  61 
 insurance activities practiced by members.  
3. the CBUAE shall supervise the business of the Emirates Insurance Union and approve its 
articles of association, which define its functions, responsibilities and relationship with 
the CBUAE, and shall establish its committees related to various insurance activities, and 
the provisions relating to its general meeting, formation of its board of directors and 
meetings of each one, fees of membership, annual subscription, rules for practicing the 
profession, disciplinary procedures against it s members, and other provisions regulating 
its affairs, the Emirates Insurance Federation shall replace all the Emirates Insurance.  
4. The Emirates Insurance Association, established under Federal Law No. (6) of 2007, 
referred to hereinabove, and all contract s, rights and obligations related to the Emirates 
Insurance Association shall be devolved to the Union.  
5. The Emirates Insurance Association's staff shall be transferred to the Emirates Insurance 
Union, without prejudice to their acquired rights.  
6. The legisla tion, policies, statutes and regulations applicable to the Emirates Insurance 
Association shall apply to the Emirates Insurance Union, without prejudice to the 
provisions of this Decree -Law, unless the superseding ones are issued.

Article (101) 
 Claims a nd Settlement of Insurance Claims  
1. The Company shall process Insurance Claims in accordance with the provisions of the 
Insurance Policies and the legislation in force, by applying the following procedures:  
a. Issuing a decision on any Insurance Claim, in accordance with the provisions set out 
in the instructions for the rules of professional practice and ethics.  
b. In the event that any Insurance Claim is rejected, in whole or in part, the Company 
shall clarify the reasons for its decision in writing.  
2. If a di spute arises out over an Insurance Claim or if the stakeholder objects to the  
Federa l Decree Law of 2023 Regulating Insurance Activities  62 
 clarifications provided by the Company, the stakeholder may file a complaint to the 
Banking and Insurance Dispute Settlement Unit, established pursuant to article (121) of 
Federa l Decree -Law No. (14) of 2018, referred to hereinabove.  
3. A complaint shall be filed according to the procedures approved by the Banking and 
Insurance Disputes Settlement Unit.  
4. One or more committees shall be established in the Banking and Insurance Disputes  
Settlement Unit to settle disputes arising from insurance contracts, insurance business 
and services. The Board shall issue the necessary decisions determining its competences, 
powers, rules of procedure, remunerations of its members and fee collected by it, in 
addition to the decisions related to its formation. The committee shall be chaired by a 
judge with one or more judges selected the CBUAE as members.  
5. The Company may not challenge the decisions of the committee referred to in Clause (4) 
above on disp utes whose value does not exceed (AED 50,000) fifty thousand dirhams. 
Such decisions shall be final and enforceable immediately upon their issuance. If dispute 
value exceeds (AED 50,000) fifty thousand dirhams, the Company may challenge the 
committee's dec isions before the Court of Appeal within (30) days, from the date of its 
issuance or coming knowledge, otherwise, the challenge shall be inadmissible.  
6. Without prejudice to the provisions of Clause (5) above, a stakeholder may challenge the 
decisions of the committee referred to in Clause (4) above before the Court of Appeal, 
within (30) days from the date of issuance of the decision or coming to knowledge; 
otherwise, the challenge shall be inadmissible.  
7. Cases arising from insurance contracts , business and services shall be inadmissible if 
they are not presented to the committees formed in accordance with the provisions of 
Clause (4) above.  
8. The committee's decisions shall have the force of a writ of execution, and a challenge 
shall stay the ex ecution of a decision on disputes whose value exceeds (AED 50,000)  
Federa l Decree Law of 2023 Regulating Insurance Activities  63 
 fifty thousand dirhams.

Article (102)  
Confidentiality of Data and Information  
1. All data and information related to insurance business and transactions related thereto 
shall be of a confidential nature. Insurance Company's employees and Insurance -Related 
Professionals and their employees are prohibited from giving and disclosing data and 
information of the Insured or Beneficiaries or enable others to access thereto in cases 
other than  the ones authorized by law. Such prohibition shall remain in place even after 
the termination of the relationship between the Company and the Insured or 
Beneficiaries for any reason whatsoever.  
2. The prohibition referred to in Clause (1) above shall apply t o all entities, Persons and any 
Person who ex officio  accesses directly or indirectly to data and information.  
3. the CBUAE shall set the rules and conditions regulating the exchange of data and 
information being the competent regulatory authority in the State.  
4. The provisions of Clauses from (1) to (3) shall not violate the following:  
a. Competences legally conferred on security and judicial authorities and the CBUAE 
and its employees;  
b. Duties entrusted to auditors of the relevant establishments;  
c. The right of the entities mentioned in this Clause to disclose all or some data of 
transactions of their clients necessary under the legislation in force in the State to 
prove their rights in a legal dispute that arose between it and its clients in this regard; 
and  
d. The  provisions set forth in the applicable laws and the ratified international 
conventions, in addition to the special provisions regulating money laundering and  
Federa l Decree Law of 2023 Regulating Insurance Activities  64 
 combating the financing of terrorism and illegal organizations.

Article (103) 
 Retention of Data and Information  
1. Notwithstanding the provisions of any other legislation, electronic data shall be 
probative if it complies with the legislative controls related thereto.  
2. The Companies shall keep, for the legally prescribed period, a soft  copy of the original 
books, records, statements, documents, correspondence, telegrams, notices, and other 
papers related to its business, and such electronic copy shall have the probative force of 
the original, pursuant to the legislation governing the sa me.

Article (104)  
Intervention in Proceedings and Notification of Investigations  
1. Subject to the provisions of the Federal Civil Procedure Law, the CBUAE may request to 
intervene in any case filed before judicial authorities to which one of its parties i s a 
Company or Insurance -Related Profession.  
2. All entities in charge of implementing the provisions of this Decree -Law and other 
entities shall notify the CBUAE of any investigations or measures taken against any 
Company or Insurance -Related Profession. the  CBUAE may provide to such authorities 
any clarifications, data or information that it may deem appropriate in this regard.

Article (105) 
Penalty  of Engagement in Insurance Business without License  
Without prejudice to any severer penalty set forth in any other law, any Person that 
breaches the prohibition set forth in Clauses (1), (2) and (4) of article (41) or the provisions 
of article (65) above, shall be penalized by imprisonment and/or a fine not less than (AED  
Federa l Decree Law of 2023 Regulating Insurance Activities  65 
 1,000,000) one million dirhams.

Article (106)  
Submission of Data and Information by Government Authorities  
All government agencies and Companies to which such agencies contribute and which 
benefit from insurance business shall submit any data or information related to insurance 
operations concluded by the same, as required the CBUAE within the period specified for the 
same.

Article (107)  
Cooperation with Local and International Authorities  
the CBUAE may cooperate with regulatory authorities in other states to exercise its powe rs set 
forth in this Decree -Law over the Companies and the Insurance -Related Professionals abroad, 
in accordance with the following controls:  
1. Observing the principle of reciprocity;  
2. The subject of cooperation must not conflict with exigencies of the public interest and 
public order;  
3. It must coordinate with the relevant authorities in the State; and  
4. It must comply with the provisions of the legislation in force in the State.

Article (108) Publication of Decisions  
the CBUAE shall publish the decisions  related to the issuance and suspension of the license or 
relicense, or decisions related to the merger, ownership, restructuring, liquidation or 
termination of the Companies in the Official Gazette and in two local daily newspapers, one 
of which is publis hed in Arabic, at the expense of the Company, and at the CBUAE's website.   
Federa l Decree Law of 2023 Regulating Insurance Activities  66

Article (109)  
Publication of Draft Regulations and Rules  
the CBUAE shall publish draft regulations and rules governing the business of the Companies 
and Insurance -Related Companie s under a notice to be served to all relevant agencies to give 
an opinion thereon, within the period identified the CBUAE.

Article (110)  
Contribution and Ownership Percentages  
1. The Board shall set the terms and conditions for citizens' and foreigners' ownership of 
the Company's shares and the percentages of contribution to the capital thereof.  
2. The Board shall determine the terms and conditions for citizens' and foreigners' 
ownership and the percentages of contribution thereto.

Article (111)  
Capacity of Judicial Officer  
the CBUAE's employees identified by a resolution of the Minister of Justice, in coordination 
with the Governor, shall have the capacity of judicial officer to detect acts committed in 
violation of the provisions of this Decr ee-Law.  
 
 
 
 
 
  
Federa l Decree Law of 2023 Regulating Insurance Activities  67

Article (112)  
Adjustment of Affairs  
Any Person that is governed by the provisions of this Decree -Law shall adjust their affairs in 
compliance with the provisions of this Decree -Law within a period not exceeding (6) six 
months from the effective date thereof, and may be extended for a similar period under a 
resolution of the Cabinet, at the proposal of the Board.

Article (113)  
Application of the Commercial Companies Law  
The provisions of Federal Decree -Law No. (32) of 2021, referred to hereinabove, shall be 
applicable to insurance business, in so far as they do not contradict the provisions of this 
Decree -Law.

Article (114)  
Repeals  
1. Federal Law No. (6) of 2007, Regulating Insurance Business, referred to hereinabove, 
and a ny provisions repugnant to, or in conflict with the provisions of this Decree -Law 
shall hereby be repealed.  
2. The regulations, resolutions and circulars issued pursuant to the provisions of Federal 
Law No. (6) of 2007, referred to hereinabove, shall remain e ffective, in so far as they do 
not contradict the provisions of this Decree -Law, until the superseding regulations, 
resolutions and circulars are issued.  
  
 
 
  
Federa l Decree Law of 2023 Regulating Insurance Activities  68

Article (115) 
Publication and Entry into Force of the Decree -Law  
This Decree -Law shall be published in the Official Gazette, and shall enter into force after (30) 
thirty days from the publication date.  
 
 
 
 
 
 
 
 
 
 
Mohammed bin Zayed Al Nahyan  
President of the United Arab Emirates  
Issued by Us at the Presidential Palace  
Dated: 17 th Rabi' Al -Awwal  1445 AH,  
Corresponding to: 2 nd October 2023 AD