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UAE consumers can soon take up insurance complaints with Central Bank's Ombudsman unit
Consumers in the UAE could soon have an opportunity to take up complaints on their insurance policies or related matters with a higher authority. The UAE Central Bank is planning an "ombudsman" unit that will take on such complaints and offer possible redressal, according to the UAE Central Bank. The unit — to be called ‘Sanadak’ will ensure the "ethical conduct of firms" and the protection of rights of insured consumers.
“The unit is expected to provide a unique mechanism for consumer complaint resolution through easy access and quick turnaround,” the UAE regulator said. Since October 2020, the UAE Central Bank has oversight of the insurance sector after Emirates Insurance Authority was merged into it. Since then, there have been major changes in the way insurers handle their responsibilities and operations.
The likely launch of an ombudsman unit is seen by industry insiders as a natural extension of recent reforms, and, most important, giving consumers the chance to voice their concerns/issues directly and through the right channels. Going by the results leading UAE insurance companies provided at the end of the first nine months, they have recorded improved premium generation. But they will still need to handle the claims side of it with extra care and attention, especially on key lines such as motor and medical.
It could lead to higher premiums being charged on new policies and renewals. According to the UAE Central Bank, the performance of the insurance sector has ‘remained resilient’ through the challenges posed by the pandemic. But priorities to raise effective supervision and regulation of insurers will be taken up, ‘in line with insurance core principles and the implementation of comprehensive corporate governance requirements for insurance companies’, the regulator added at a forum where CEO of insurance companies was hosted.
The Board of Directors of the financial and insurance ombudsman unit, Sanadak, held a meeting chaired by Her Excellency Fatma Al Jabri, Chairperson of the Board.
Sanadak, the Ombudsman Unit catering to consumers of Financial Institutions and Licensed Insurance Companies, starts its operations today, in line with the United Arab Emirates (UAE) leadership’s directive to enhance government services, and in accordance with the regulations set by the Central Bank of the UAE.
Dubai: Consumers in the UAE could soon have an opportunity to take up complaints on their insurance policies or related matters with a higher authority. The UAE Central Bank is planning an "ombudsman" unit that will take on such complaints and offer possible redressal, according to the UAE Central Bank.
