Article (9)
This Resolution shall be published in the Official Gazette and shall come into force three months
after the date of its publication.
Mohammed Bin Rashid Al Maktoum
Prime Minister
On: 29 Rabi’ II, 1440 H
Corresponding to: 6 January 2019 A.D
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 5
Annex 1
Table attached to the Cabinet Resolution No. (7) of 2019
Concerning Administrative Fines Imposed by the Insurance Authority
Serial No. Violation Value of administrative fine in
dirhams
1 Non-compliance of the company with
fulfilling the compensation set forth in
the insurance contract upon accident
occurrence or occurrence of insured
risk.
50 thousand
2 Non-compliance of the company with
the requirements of investment basics
in accordance with the provisions of
financial instructions.
100 thousand
3 Non-compliance of the company in all
times with fulfilling the requirements
of solvency margin and the minimum
amount of insurance in accordance
with the provisions of financial
instructions.
150 thousand
4 Non-compliance of the company with
the requirements of technical
provisions calculation in accordance
with the provisions of financial
100 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 6
instructions.
5 Non-compliance of the company with
defining the assets that meet the
insurance obligations in accordance
with the provisions of financial
instructions.
100 thousand
6 Non-compliance of the company with
re-insurance standards in accordance
with the provisions of relevant
instructions.
100 thousand
7 Non-compliance of the company with
the requirements of regulating
accounting books, records and data to
be inserted and saved therein
including the records of agents,
brokers and others in accordance with
the provisions of financial
instructions.
10 thousand
8 Non-compliance of the company with
providing the Authority with data in
accordance with financial instructions.
10 thousand
9 Non-compliance of the company with
the requirements of accounting
policies and models necessary for
50 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 7
preparing financial reports and data in
accordance with the provisions of
financial instructions.
10 Non-compliance of Takaful Insurance
Company with the rules of agency
fees and
Mudarabah share in
accordance with the provisions of
financial instructions.
100 thousand
11 The company’s violation of any of the
provisions referred to in the
instructions of profession code of
conduct and ethics of insurance
companies.
50 thousand
12 The company or insurance related
professionals’ violations of any
provision of the instructions of money
laundering combating and terrorism
finance combating in insurance
activities.
50 thousand
13 Any person practice of insurance or
re-insurance activities inside the state
without obtaining license or register
from the Authority.
250 thousand
14 The company’s violation of the 100 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 8
instructions issued concerning pricing
policy in property and responsibility
insurance branches.
15 Establishment of an insurance
company, opening of a branch of
foreign insurance company or practice
of insurance agent work by any
person without obtaining the prior
approval of the Board.
250 thousand
16 The company’s combination between
personal insurance, fund raising and
property and responsibility insurance
in violation of the provisions of law
and instructions or resolutions issued
therefor.
250 thousand
17 Any person mediating in insurance
business for funds or property within
the State or liabilities arising
therefrom with an insurance company
which is not registered by the
Authority in accordance with the
provisions of the law.
100 thousand
18 Non-compliance of the company with
drafting an insurance company within
the State in a language other than
50 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 9
Arabic.
19 Non-compliance of the company with
reflecting the items that hold it
harmless in the document in a
significant font in a different color or
without annotating it by the insured
person.
50 thousand
20 The company opening of branches in
the State without obtaining the
Authority’s approval.
100 thousand
21 The company’s appointment of a
member in the Board of Directors,
general manager or deputy director of
the company or allowance thereof to
be in office despite the issuance of a
rule against it in a crime, offence
against honor, integrity or public
morals, or issuance of insolvent rule
and was not rehabilitated.
50 thousand
22 The company’s appointment of a
member in the Board of Directors,
general manager or deputy director of
the company despite being
responsible for a grave breach of the
provisions of law or corporate law or
100 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 10
forcing it into liquidation.
23 The chairman, any of the members of
the Board of Directors, its general
manager, the deputy director, his
representative, any manager in the
company or a senior management
officer in any or all of the following:
A. taking part in the management of
other competitive or similar company.
B. Competing the company’s business
or conducting any action or activity
that result in a conflict with the
company interest.
C. Exercising the insurance agent or
broker businesses.
D. Receiving commission for
insurance works.
100 thousand
24 Representing any shareholder of the
company by any of the company
managers or employees.
25 thousand
25 Non-compliance of the company with
providing the Authority with a
detailed statement including the
qualifications and experiences of the
general manager, deputy director or
key employees in accordance with the
50 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 11
provisions of the executive regulation
of law and/or non-availability of
efficiency and experience in insurance
businesses condition.
26 Non-compliance of the company with
informing the Authority with the
names of Board of Directors members,
general manager, deputy director or
any principal employee in accordance
with the provisions of the executive
regulation of the law.
10 thousand
27 Non-compliance of the company with
informing the Authority with the
vacant positions of BoD member,
general manager, deputy director or
any principal employee within sixty
days as of position vacancy date.
20 thousand
28 Non-compliance of the company’s
board of directors with providing the
Authority with copies of its meetings
minutes and resolutions related to
electing the Board chairman,
deputy-chairman and members
authorized for signing on behalf of the
company as well as their signature
models within seven days as of the
10 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 12
issuance of these resolutions.
29 The Company’s exercise of insurance
business without appointing or
authorizing a licensed actuary within
a month as of the date of licensing the
company.
100 thousand
30 Non-compliance of the company with
informing the Authority on appointing
or authorizing the actuary within a
month of its appointment date.
10 thousand
31 Non-compliance of the company with
providing any data or information
requested by the Authority about it or
any company with ownership relation
therewith or related thereto within the
period set out by the Authority, in
addition to any data or information
submitted by the company to any
other supervision entity and any data
or information received by the
company from these entities, if any.
50 thousand
32 Non-compliance of the company to
invite the Authority’s general manager
to attend the General Assembly 15
days at least before its date.
50 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 13
33 Not informing the company,
insurance related professionals, any of
their manager or employees on the
person assigned by the general
manager to undertake inspections or
auditing of books, records and data
and collect information, transactions,
documents and check reports.
100 thousand
34 Non-compliance of the company or
insurance related professionals with
providing copies of the books or data
referred to in the previous clause to
the person assigned by the general
manager to undertake inspections or
auditing.
50 thousand
35 The company. insurance related
professionals, any of their manager or
employees’ prevention, interception
or hindering the person assigned by
the general manager to undertake
inspections or auditing.
100 thousand
36 Any person’s breach of the rules of
insurance company capital ownership
rate issued by the provisions of law
and resolutions issued thereunder.
100 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 14
37 Non-compliance of any insurance
related professionals with providing
any data or information requested by
the Authority within the period it
defines.
10 thousand
38 The company’s failure to pay wages
defined by the Authority for experts,
advisors, actuaries or auditors
appointed by the Authority.
20 thousand
39 Disclosure of any information
violating the law by the expert,
advisor, actuary or auditor to any
entity.
50 thousand
40 Non-compliance of the company with
providing the Authority with an
annual comprehensive report on its
businesses including all data, reports
and annual audited financial
statements in line with the
requirements of law and financial
instructions.
100 thousand
41 Non-compliance of the company with
providing the Authority with the
annual comprehensive report signed
50 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 15
by its BoD chairman, deputy director
or authorized signatories of the
company.
42 Non-compliance of the company with
providing the Authority with the
annual comprehensive report within a
period not exceeding 4 months as of
the date of financial year end.
50 thousand
43 Non-compliance of the company with
providing the Authority with the
annual comprehensive report 30 days
at least before calling the company’s
General Assembly to meet.
200 thousand
44 Non-compliance of the company with
providing the Authority with data and
quarter financial reports within the
period specified by the Authority
100 thousand
45 Non-compliance of the company with
providing the Authority with report
requirements, certificates, approvals
and annual and quarter financial
reports according to the regulations
approved by the Authority
100 thousand
46 The Company’s delay to pay the fees 0.5% of total unpaid due amount for
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of supervision and control according
to the form prepared by the Authority
within four months as of the end date
of fiscal year
each delay day as maximum (250
thousand)
47 Non-compliance of the company with
paying the rehabilitation and training
within four months as of the end date
of fiscal year
0.5% of total unpaid due amount for
each delay day as maximum (100
thousand)
48 Non-compliance of the company with
correcting and presenting financial
accounts and losses and profits
accounts to the Authority for approval
despite the objection of General
Manager thereon
100 thousand
49 Non-compliance of the company that
faces bad financial or administrative
conditions or faces severe losses that
affect the rights of the insured person
or beneficiaries represented by its
chairman of the Board or general
manager with notifying the general
manager thereof immediately.
100 thousand
50 Non-compliance of the company with
providing the Authority with some or
all of the following:
50 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 17
A. Models of insurance policies and
their application approved annexes,
including general and private
conditions, technical bases thereof
and rates of attached premiums.
B. Tables of personal insurance
policies value refund, fund-raising
processes and rates of attached
premiums.
51 Non-compliance of the company with
providing the insured person and
beneficiaries with copies of insurance
policies and relevant data.
20 thousand
52 Non-compliance of the company with
disclosure and transparency principle
in dealing with its customers and in all
issued documents, papers, prospectus,
announcements, advertisements,
articles and scientific materials in
accordance with the Board decisions
to consider the application of this
commitment.
20 thousand
53 Non-compliance of the auditor with
providing an immediate report to the
Authority and a copy thereof to the
company’s chairman of the board in
50 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 18
any of the following cases:
A. If he finds out that the financial
position of the company undermines
its ability to fulfil its commitments
towards the insured persons or
impede its capacity to meet the
financial requirements in accordance
with law, legislations and resolutions
issued thereunder.
B. If he finds out that there is a great
imbalance in practicing the financial
procedures of the company.
C. If he rejects or reserves on any
certificate related to the company’s
income or financial statements.
D. If he decides to resign or reject his
reappointment in the company for
extraordinary grounds.
54 Non-compliance of the company’s
auditor with providing the Authority
directly and within the period
specified thereby with necessary
information to control the company’s
business.
50 thousand
55 Non-compliance of the company with
the provisions that regulate its deposit
which are defined by law.
100 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 19
56 Non-compliance of the company that
exercise any personal insurance
activities and fund-raising processes
with keeping amounts in the state that
cover all account reserve of contracts
concluded or implemented in the
state.
100 thousand
57 The company’s exercise of insurance
activities without being listed in the
register allocated for the same type of
insurance activities.
150 thousand
58 Reinsurance by another company that
is not licensed to practice the type of
insurance entrusted to reinsurance.
150 thousand
59 Concluding insurance contracts by the
insurance company in a type of
insurance for which a decision was
issued to suspend or cancel its
licenses to exercise.
250 thousand
60 Failure of the company to fulfil its
obligations arising out of contracts
concluded before suspending its
validity or cancelling its license.
250 thousand
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Cabinet Resolution of 2019 Regarding Administrative Fines Imposed by the Insurance Authority 20
61 Non-compliance of foreign insurance
company branches with appointing a
deputy manager for its branch to
practice activities on its behalf.
100 thousand
62 Non-compliance of the foreign
company, in case of appointing a
deputy manager for its branch, with
attaching appointment resolution to
an official document to be deposited
at the Authority and an approved copy
thereof that authorizes him to practice
all necessary powers for managing the
branch, including:
A. Issuing insurance documents and
annexes thereof.
B. Paying resulting compensations.
C. Representing the company before
competent courts and all official and
unofficial entities in relation to branc
