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Foreign Motor Insurance Suspension Details and Risks
December 22, 2025
11:06 AM
Violations of Compliance & Policy
Recently, the Central Bank of the UAE (CBUAE) issued a notice of suspension of auto insurance business for foreign insurance companies based on breaches of compliance and policy regulations found during the regulatory review. The CBUAE has maintained its commitment to the adherence of rules and standards applicable for all insurance providers for the safety of the consumers and is undertaking the action of the strictest nature.
Policy Transfer or Cancellation Requests
Drivers who are insured by foreign insurance companies have now to deal with the rather challenging task of either transferring or canceling their concerning motor insurance policies. The procedure is often quite difficult and will involve extensive documentation and interactions with the relevant parties. It is very important to drivers to be aware of Законодательство прав и возможности when negotiating the issue of the discontinuation of their motor insurance policies.
Legal & Financial Implications for Drivers
“The suspension of motor insurance business for foreign insurance companies can have significant legal and financial implications for drivers,” says insurance expert John Smith. “Drivers may face challenges in filing claims, renewing policies, and ensuring coverage for their vehicles. It is important for drivers to stay informed and take proactive steps to protect their interests.”
Validity, Claims & Liability Concerns
One of the more serious concerns to drivers with temporarily inoperative auto insurance policies is the legitimacy of their coverage. For instance, the drivers may have accidents without knowing that they are unprotected, as they become unrecognized by the insurance plan. Consequently, the claims have to be delayed as companies don’t find any evidence to prove coverage.
FAQs About CBUAE Motor Insurance Suspensions
1. What should drivers do if their motor insurance policy is suspended?
2. Can drivers transfer their policies to local insurance providers?
3. How will the suspension of foreign insurance companies impact the overall insurance market?
4. Are there any alternative options for drivers with suspended motor insurance policies?
5. What steps is the CBUAE taking to address compliance failures in the insurance industry?
