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The UAE Central Bank calls for activating the account requirements for insurance companies’ premiums

Abu Dhabi – Mubasher: The Central Bank of the UAE called on all insurance agents, insurance brokerage companies, and health insurance claims management companies licensed to operate in the country by the Central Bank, to activate the requirements of the “suspended account” related to funds and premiums of insurance companies, so that this account is limited to depositing Installments, payment of dues to other companies.

And he stressed in a circular issued by him, bearing the number “4708/2022”, that companies must comply with the instructions within 10 working days, otherwise they will be subject to the imposition of legal measures, according to Emirates Today newspaper.

Activating the requirements of the suspense account requires that the account related to the insurance company’s funds or premiums be approved as a suspense account, and its use is limited to depositing the premiums or funds belonging to the relevant insurance company, and paying what is owed by the insurance company to others.

It is permissible to adopt one suspended account from which several suspended sub-accounts are branched, and each insurance company has a separate suspended account. According to the suspended account agreement that is signed in this regard.

He called on the Central Bank to provide the Insurance Supervision Department at the Central Bank within 10 working days from the date of this notification, as a maximum, with details of all the company’s accounts related to the insurance business (the name of the bank, the account number, and the authorized signatory), certified by the external auditor. , as well as a copy of the suspended account agreement, or a copy of the suspended account opening request.

The Central Bank added that if the account opening procedures were not completed, a copy of the pending bank account statements every three months, duly certified by the concerned bank, along with the company’s quarterly financial statements.

In his circular, he stressed that failure to comply with the aforementioned instructions may expose the company and the authorized signatory to the company’s accounts. for legal action.

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