UAE - Regulator warns insurers against making misleading statements
Source: Middle East Insurance Review | Nov 2016
The UAE Insurance Authority (IA) has directed all insurance companies not to mislead consumers and to be truthful in making any declaration or in publishing marketing collateral.
Mr Ebrahim Obaid Al Zaabi, Director General of the IA, in a circular, stressed the need for information provided to the public to conform to reality and be consistent with the law and technical regulations, reported the Al Bayan. Statistics and numbers presented must be accurate and technically sound.
He said that insurers in their advertising or other literature should not create impressions among the public of advantages and benefits of insurance products that are not consistent with the actual fact. Insurers must indicate whether the prices they publish for their products include comprehensive duties and taxes, if any. Insurers should also not publish untrue information regarding their financial situation.
Advertisements and literature issued by insurers should not contain untrue statements regarding the possibility of obtaining loans or concluding mortgages.
The IA also stressed the need to disclose terms and conditions fully in an insurance policy. There should not be any exaggerated statements about profit sharing, benefits and share of the surplus.