ARTICLE
1 July 2025

What Is The Electronic Insurance Policy And Why You Need It? (Video)

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Dr Hassan Elhais

Contributor

Dr. Elhais, with his vast legal expertise spanning family, arbitration, banking, commercial, company, criminal, inheritance, labour, and maritime law, is dedicated to providing top-tier legal solutions. As an integral member of the team at Awatif Mohammad Shoqi Advocates & Legal Consultancy in Dubai, he contributes to the firm's mission of delivering comprehensive legal counsel across the UAE. The team, as a whole, is committed to maintaining the highest levels of integrity, confidentiality, and discretion. Initially making his mark in criminal and public law, Dr. Hassan made the decision to move to Dubai in 2006, marking a significant step in his legal career. Since joining Awatif Mohammad Shoqi Advocates & Legal Consultancy, he has been an active contributor to the firm's growth and reputation. Dr. Hassan is known for his dedication to transparency in legal dealings and fee structures, a reflection of his solid ethical values.
With thousands of online insurance offers, the Insurance Authority of the Government of the UAE Government issued the Insurance Authority Board of Directors' Resolution No. (18) of 2020 Concerning the Electronic Insurance Regulations (Resolution) on 27 April 2020 to govern all insurance policies sold or purchased online within the UAE.
United Arab Emirates Insurance

With thousands of online insurance offers, the Insurance Authority of the Government of the UAE Government issued the Insurance Authority Board of Directors' Resolution No. (18) of 2020 Concerning the Electronic Insurance Regulations (Resolution) on 27 April 2020 to govern all insurance policies sold or purchased online within the UAE.

Overview of the Resolution

Initially, the Insurance Authority will require all insurance companies operating electronically to obtain approval from the authority to practice electronic insurance operations. Companies are required to submit an action plan, risk analysis, contingency plan with a business continuity plan, and projected volumes of operations for the following 3 years.

While insurance companies are not permitted to sell life insurance products, if these are linked to investment instruments, but can sell life and personal insurance policies not requiring individual underwriting.

Companies are also required to have an IT Department regulating and managing the insurance website. However, if the company wishes to outsource the work to an IT company, they must obtain a pre-approval from the authority and verify the compliance of the third party with the provisions of this resolution.

Akey change brought about by the Resolution is the introduction of "price comparison websites". While insurance companies and insurance related professionals are prohibited from dealing with price comparison websites, insurance brokers have been given the permission to engage with such sites. The Resolution mandates that the service to be provided by the price comparison websites would only be to compare prices and that the right to communicate with the customer is limited to the insurance brokers. A price comparison website will have to satisfy certain conditions to be eligible for registration as such an entity.

Provisions of the Resolution

Much emphasis has been put on the companies' requirement to maintain the confidentiality of the electronic information obtained through the website, which obligation would continue indefinitely.

The Resolution prohibits the companies to disclose this information to a third party except through a security or judicial order. The Resolution also mandates storing of data inside the UAE. The Resolution provides for communication with the customer through two other additional means which can be either via email, registered mail, SMS or telephone. The Resolution also provides for a process of claim submission and handling online by submitting electronic copies of the claim documents.

By carefully examining the provisions of the Resolution, it is very apparent that it was drafted in line with the modern technologies and digital era, while also having particular prerequisites which still correspond with the traditional insurance laws. The biggest advantage of this Law is that it enables the world to experience the insurance sector with the most modernized technology and to avoid paperwork.

The Resolution is an incredible chance for the UAE insurance Authority to manage and utilize technological advancements in the insurance sector.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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