Q&A Insurance Law Part 1

Q&A Insurance Law part 1

The Federal Decree-Law No. (48) of 2023 concerning the regulation of insurance operations in the United Arab Emirates governs insurance matters and defines the legal framework for insurance in the country. The Central Bank of the United Arab Emirates is responsible for supervising and regulating the insurance sector, as per Federal Decree-Law No. (25) of 2020, which assigned the Central Bank and its board of directors the duties previously held by the Insurance Authority established by Federal Law No. (6) of 2007.

But what is insurance?

Insurance is a contract under which the insurer (insurance company) is obligated to pay the insured or the beneficiary, for whom the insurance was stipulated, a sum of money, an annuity, or another form of financial compensation upon the occurrence of an event or realization of a risk specified in the contract, in return for premiums or other financial payments made by the insured to the insurer.