The Central Bank of the UAE (CBUAE) has stopped a takaful insurer from issuing new motor and health insurance contracts, including renewals.
The insurer is still responsible for all existing contracts made before this prohibition. The CBUAE took this step because the company failed to meet the minimum capital requirements.
The insurer has been given six months to address its solvency issues and comply with the Central Bank’s directives.
This decision, effective as of October 2, 2024, comes under Article 33 of Federal Decree Law No. 48 of 2023, which regulates insurance activities in the UAE.
The CBUAE ensures that all insurers, their owners, and staff adhere to UAE laws and standards to protect policyholders and maintain the integrity of the insurance sector and the overall financial system.
