Translation from Arabic into English
UNITED ARAB EMIRATES
Circular No. (24) of 2016
Concerning The Unification of Motor Vehicle Insurance Policies
To All Insurance Companies Operating In the UAE
Please note that IA Board has approved the regulations for the unification of motor vehicle insurance policies for 2016 which included the unified insurance policy for insurance against loss, damage and third party liability (comprehensive) and third party civil liability (TPL) which will come into effect on 1/1/2017 and IA Board Resolution will substitute Cabinet Resolution No. 54 of 1987 as amended.
Accordingly, please execute the following:
- Task the appointed actuary with the company to study the two policies provided that the study shall provide IA with the principles and assumptions on which he reached the price and the fair price for insurance of motor vehicles as per the attached forms.
- The study must take into consideration the following:
- Loss ratio that this branch of insurance has incurred including both the comprehensive and TPL.
- Administrative expenses percentage and production costs including commissions of the brokers and agents.
- Reasonable profit margin percentage.
- The bases included in IA Board Resolution No. 11 of 2016 regarding the revision of the pricing policy and the circular issued in this regard.
Hoping that you provide us with the study and the pricing as shown above by Thursday 20/10/2016 at the latest to email Actuaryreports@ia.gov.ae.
Ebrahim Obaid Al Zaabi
This translation is an unofficial translation of the original Arabic text which is provided for information purposes only for non-Arabic readers.