1. An authority to be called The Insurance Authority, entertaining the status of a legal person with financial and administrative independence shall be established, and shall have an independent budget subjoined to the State's budget. In such capacity, the Authority shall perform all operations and actions enabling it to achieve the objectives and duties assigned thereto pursuant to the provisions of the law and shall be an annexed to the Minister.
 

2. The main premises of The Authority shall be located in Abu Dhabi City and by decision of the Board branches thereto may be established within the State as the public interests may require.

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The Authority aims at organizing and overseeing the insurance sector in a way that would ensure suitable environment to develop it and enhance the role of the insurance industry to secure lives, properties, and liabilities against risks in order to protect the national economy; collect, develop, and invest the national savings to sustain the economic development of the State; encourage fair and effective competition; provide the best insurance services in competitive premiums and coverage, and Emiratize the insurance markets jobs and for the cause the Authority shall carry out the following duties:

1. Protecting the rights of the insured and the beneficiaries of the insurance operations and monitoring solvency of the companies to avail satisfactory insurance coverage in order to protect these rights.
    
2. Enhancing performance and efficiency of the insurance companies and binding them to observe the profession's code and rule of conduct to enhance their capabilities to render the beneficiaries of the insurance the best services and attain constructive competition.
    
3. Providing efficient and qualified human resources to carry out insurance operations including establishment of an institute for the purpose in cooperation and collaboration with Emirates Insurance Association (EIA) according to the prevailing legislations.
    
4. Proposing programs and plans to develop the insurance sector in all aspects and enhancing insurance awareness, preparing studies and researches relevant to the insurance operations and disseminating the same.
    
5. Consolidating cooperation and integration ties with the authorities organizing insurance sector at both the Arab world and International levels.
    
6. Receiving applications to establish, open branches and representative offices for insurance and re-insurance companies, insurance brokers and the professions related thereto and issuing them the necessary licenses.
    
7. Identifying the risks which shall be compulsorily insured.
    
8. Determining unified tariffs of certain types of insurances and of those one enlisted there under in cases the public interest would require.
    
9. Any other assignment relevant to organizing the insurance sector as resolved by the Board.

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The Insurance Authority shall be composed of the following:

1. The Board
2. The Director General
3. The Executive Body

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The Authority shall have a board of directors composed of a chairman and a number of directors to be appointed under a Cabinet resolution. The nominees for the Board membership must not have any type of conflict of interest in their membership, throughout the membership term. The resolution to form the Board shall determine the number, remuneration and term of office of the directors.

In its first meeting, the Board shall elect from its members a Vice Chairman to substitute the Chairman in the event of his absence or if the Chairman is incapacitated

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The Authority shall have a board of directors composed under the chairmanship of the Minister of ten members of the experienced and specialized individuals designated on basis of a presentation by the Minister as follows:

• Two members from the Ministry to be nominated by the Minister
• One member from the Ministry of Finance & Industry to be nominated by the Minister of Finance & Industry
• One member from UAE Central Bank to be nominated by the Governor.
• One member from the Federation of the Chambers of Commerce & Industry to be nominated by the President of the Federation.
• Five members to be nominated by the Minister out of the specialist in the sectors of finance, economy and insurance, provided they include among them one member from Emirates Insurance Association (EIA).

The Cabinet shall issue a resolution to form the Board, determine remunerations of its members, and indicate duration of membership. The Chairman shall select a deputy therefor out of the Board's members

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The executive regulation of the law herein shall lay down the terms and conditions of the Board's membership.

1. Membership of any of the Board's members shall end in any of the following cases:

1. Resignation or replacement by the nominating body.
2. Should he remained absent for three consecutive cessions or four non-consecutive cessions during one year without an acceptable excuse.
3. Should he become devoid of any of the terms and conditions provided for in the executive regulation of the law herein.

2. The Cabinet on recommendation of the pertinent body and within a period not exceeding sixty days as from date of vacating a seat of the board shall appoint another in his place to complete the tenure of the member who his membership came to an end.

The Board shall assume the duties and authorities provided for in the law herein and the regulations, rules, directives, and decisions issued pursuant thereto including:

1. Laying down the general policy of the Authority and approving the necessary implementation plans and programs.
    
2. Approving draft laws relevant to insurance operations and report them to the Cabinet.
    
3. Issuing the necessary directives to implement the provisions of the law herein, and the regulations, and rules, issued pursuant thereto.
    
4. Approving the draft of the annual budget of the Authority and refer it to the Cabinet for sanction.
    
5. Approving the annual report and the final accounts of the Authority and refer them to the Cabinet.
    
6. Appointing an account auditor for the Authority and determining his remuneration.
    
7. Acknowledging aids, donations, grants, and bequests seen in line with the objectives of the Authority.
    
8. Settling the objections raised by the company in respect of amending the insurance's forms, policies and endorsements.
    
9. Executing any other duties related to the Authority's affairs and objectives.

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The Board shall meet once every three months at least and may be invited to hold an extraordinary meeting upon request of the Chairman or three members at least.
The quorum for holding the meeting of the Board shall be the attendance of the majority of the members, provided the chairman or his deputy shall be among them. Resolutions shall be issued by absolute majority of the votes cast and in case of a tie the side of the chairman of the meeting shall have casting vote. Minutes of the Board's sessions shall be written down and approved by the chairman of the session. The resolutions shall be issued duly signed by the chairman.
The Board may invite whoever seen fit of those experienced and qualified experts and consultants to render assistance to attend its sessions without having voting rights in decisions making.

By virtue of a Federal Decree based on a recommendation by the chairman a director general of the Authority shall be appointed in the same scale of an undersecretary of a ministry.

The director general shall carry out the operations of the Authority and representing the Authority in its relations with the others and before the judiciary and in particular he shall:

1. Implement policies, plans and programs approved by the Board.
    
2. Suggest the organizational structure of the authority and superintend the same in a way that secures good performance of the operations.
    
3. Prepare programs and plans to develop the insurance sector and upgrade its services for submission to the Board.
    
4. Prepare draft laws, regulations, rules, directives and decisions issued in conformity with the provisions of the law herein related to insurance operations and refer the same to the Board.
    
5. Prepare the draft of annual budget the Authority and refer the same to the Board.
    
6. Consider complaints lodged pertaining to the insurance services and take the appropriate decisions in this respect unless seen necessary to refer them to the Board.
    
7. Issue the necessary decisions as may be authorized pursuant to the provisions of the law herein.
    
8. Carry out any other assignments entrusted to him by the Board

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The Director General may delegate some of his assignments to the senior managerial employees of the Authority as provided for in the law herein, provided such delegation shall be specific and in writing..

The executive body of the Authority shall be composed of the employees appointed or contracted according to the regulations issued pursuant to the provisions of the law herein.

The revenues of the authority shall be comprised of the following resources:

1. Any monies allotted for the Authority by the Government,
2. The fees charged by the Authority,
3. The surpluses of earlier years' budgets,
4. The bequests, grants, donations, and aids accepted by the Board that in line with the Authority's objectives,
5. Any other resources approved by the Board.

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The fiscal year of the Authority shall commence on the first day January and end on thirty first day of December each year. However, the first fiscal year shall commence as from date of enforcing the provisions of the law herein and end by the end of December of the following year

1. The Authority's funds shall be deemed public properties.
2. The Authority shall entertain the exemptions and facilities as entertained by the Government Ministries and Directorates.
3. Auditing of the Authority's accounts shall be taken over by one of those certified accounts auditors enlisted in the register of the operating accounts auditors.

The Authority shall maintain reserves equal in amount to twice the total expenditures of its annual budget and the surpluses thereof shall be transferred to the State's public treasury.

The Board shall issue on a recommendation by the director general the instructions pertinent to the insurance operations including:

1. The solvency margin and the minimum guarantee fund, provided the same shall not be less than one third of the solvency margin taking the international standards into consideration,
2. The basis of calculating the technical provisions,
3. The standards of re-insurance,
4. The basics of investing the rights of the policyholders,
5. Determining the company's assets that meet the accrued insuring obligations.
6. The accounting policies to be adopted by the company and the necessary forms needed to prepare reports and financial statements and presentation thereof.
7. The principles of organizing accounting books and records of each of the companies, agents, and brokers and determine data to be inserted in these books and records.
8. The records which the company shall be obliged to organize and maintain as well as the data and documents shall be made available to the Authority.
9. The profession's rules and code of conduct.
10. Anti-money laundering and terrorism financing in the insurance activities in collaboration with the pertinent bodies.