Cabinet Resolution No. 7 of 2019 Concerning Administrative Fines Imposed by the Insurance Authority

Cabinet Resolution No. (7) of 2019 Concerning the Administrative Fines Imposed by the Insurance Authority The Cabinet:
Having considered the Constitution;

• The Federal Law No. (1) of 1972 on the Competencies of the Ministries and
  Powers of the Ministers and the amendments thereof;
• The Federal Law No. (6) of 2007, concerning the Establishment of the Insurance
  Authority and the Organization of Insurance Operations and the amendments thereof;
• Federal Law No. (1) of 2011 on the State’s Public Revenues;
• Federal Law No. (14) of 2016 on Violations and Administrative Penalties in the
  Federal Government;
• And, based on the approval of the Cabinet,
  Has resolved:
  Article (1)
  Definitions
  In the application of the provisions of this Resolution, the following words and expressions shall have the meanings ascribed thereto, unless the context indicates otherwise:
  State: United Arab Emirates.
  Authority/IA: The Insurance Authority established by virtue of the Law. Board: The Insurance Authority’s Board of Directors. Director General: The Director General of the Insurance Authority. Company: The insurance company incorporated in the State and the foreign insurance company licensed to carry out insurance activities in the State either through a branch, or through an insurance agent, including Takaful insurance companies. Person: A natural or legal person. Insurance-Related Professions: Any person licensed by the Authority to practice any of the activities of insurance Agent, Actuary, Insurance Broker, Loss & Damage Adjuster, Insurance Consultant, Health Insurance TPA or any other insurance-related profession that the Board decides to regulate. Bylaws, Regulations, Instructions and Decisions: Any bylaws, regulations, instructions or decisions issued pursuant to the Law.

Law: Federal Law No. (6) of 2007 concerning the Establishment of the Insurance Authority and Organization of its Operations and the amendments thereof.
Article (2)
Scope of Applicability
The provisions of this Resolution shall apply to any person, company or any insurance – related professions in case of committing any of the violations referred to in the annexed
schedule.
Article (3)
Violations and Penalties

1. Without prejudice to any penalty or procedure prescribed by the Law and other
   relevant legislation, the Authority shall impose the Administrative Fines contained in the
   schedule annexed to this resolution on any person commits any of the violations
   contained therein.
2. The amount of the Administrative Fines in the schedule referred to in Para (1) of this
   article shall be doubled if the violation is repeated within one year as from the date of
   the last violation with a maximum fine amount of (two) million dirhams.
   Article (4)
   Grievance
3. Any concerned person may appeal any decision issued pursuant to the
   provisions of the resolution herein before the Board within (15) days as from date of notification of such decision. The grievance shall be justified and all supporting documents shall be attached therewith in accordance with the procedures specified by the Board.
4. The Board shall decide on the appeal in accordance with the procedures issued
   therefrom within a period not exceeding sixty (60) days as from the date of its submission.
   Article (5)
   Collection of Administrative Fines The Authority shall collect the Administrative Fines imposed under the provisions of the resolution herein in accordance with the means deemed appropriate by the Ministry of Finance.

Article (6)
Issuing Executive Decisions The Cabinet shall issue the necessary resolutions to implement the provisions of this Resolution.
Article (7)
Amending Fines Schedule
The schedule annexed to this decision shall be an integral part of it, and the Cabinet may make any amendment to the violations and Administrative Fines contained therein, whether by addition, deletion or alteration.
Article 8
Cancellations
Any provision in conflict or contradicting the provisions of the resolution herein shall be annulled.
Article (9)
Publication and Coming into Force This Resolution shall be published in the Official Gazette and shall come into force after three months as from date of publication. Mohammed Bin Rashid Al Maktoum Prime Minister Issued by us:
On: 29 Rabie Akhar 1440 H
Corresponding to: 6 January 2019 In case there is any inconsistency between this translation and the Arabic version of this decision, then the Arabic version shall prevail.

The Annexed Schedule to the Cabinet Resolution No. (7) of 2019 Concerning the Administrative Fines Imposed by the Insurance Authority Administrative Fine (AED) Violation No. 50,000 Failure of the Company to pay the compensation stipulated in the insurance contract once the accident occurred or insured risk took place. 100,000 Failure of the company to comply with the requirements of the basics of investment in accordance with the provisions of the Financial Regulations. 150,000 Failure of the company to comply all time with the Solvency Margin and the Minimum Guarantee Fund in accordance with the provisions of the Financial Regulations. 100,000 Failure of the company to comply with the basis of calculating the Technical Provisions in accordance with the provisions of the Financial Regulations 100,000 Failure of the company to comply with Determining the company's assets that meet the accrued insurance liabilities in accordance with the provisions of the Financial Regulations. 100,000 Failure of the Company to comply with the reinsurance criteria in accordance with the provisions of the relevant instructions.

10,000
Failure of the Company to comply with the principals of the organizing accounting books and records and the data that should be inserted in these books and records, including records of Agents, Brokers and other records in accordance with the provisions of the Financial Regulations. 10,000 Failure of the Company to provide the Authority with the data in accordance with the Financial Regulations. 50,000 Failure of the Company to comply with the requirements of accounting policies and forms required for the preparation of financial statements and reports in accordance with the provisions of the Financial Regulations. 100,000 Failure of the Takaful Insurance Company to comply with the rules of the WAKALA and MUDARABA fees in accordance with the provisions of the Financial Regulations. 50,000 Violation of Company of any of the provisions contained in the rules and code of professional conduct for insurance companies. 50,000 Violation of the Company or any Insurance Related Profession of any provision of the instruction concerning Anti- money laundering and combating terrorism financing in insurance activities. 250,000 Any person practices the operations of insurance or re-insurance inside the State without obtaining a license or registered by the Authority. 100,000 Violation of the Company of the instructions issued concerning the pricing policy applied to the classes of property and liability insurance 250,000 Any person established an insurance company, opened a branch of a foreign insurance company or carried out the activity of an insurance agent without obtaining the prior approval of the Board. 250,000 The company combined between the insurance of Persons and Funds Accumulation Operations and the insurance of Property and Liability Operations in violation of the provisions of the issued Law, regulations or decisions. 100,000 Any person intermediating for insurance of property or possessions inside the State or liabilities arising therefrom with an insurance

company which is not registered by the Authority in accordance with the provisions of the Law. 50,000 Failure of the company to issue the insurance policy concluded in the State in the Arabic language. 50,000 Failure of the company to write the policy's articles exempting the company from the liability in bold letters, different colour and endorsed by the insured. 100,000 The Company opened a branch without obtaining the approval of the Authority. 50,000 The company appointed a Board Member, General Manager or an Authorized Manager for the company or allowed any of them to continue to occupy his post, despite being convicted for breach of honour, trust or public moral or declared bankrupt by the court and not yet rehabilitated. 100,000 The company appointed a Board Member, General Manager or an Authorized Manager, despite being liable for significant violations of any of the provisions of the Law or of the Companies' Law, including the liability of causing compulsory liquidation of the company. 100,000 The Chairman, any of the Board Members, its General Manager, the Authorized Manager or whosoever acting on his behalf or any of the company's managers or a senior officer conducted any or all of the following:
A. Participate in managing other competing insurance company or a similar company thereto, B. Compete the company's operations or do any actions or an activity that conflicts with the company's interest,
C. Carry out the operations of an insurance
Agent or a Broker,
E. Receive a commission for any of the insurance operations.

25,000
Whosoever is in charge of the management of the company or any employee therewith has represented any of the shareholders of this company. 50,000 Failure of the company to provide the Authority with detailed description implying the qualifications and experience of the General Manger, Authorized Manager, or senior officers as specified in the executive regulations of the Law or lack of the requirement of competency and experience in the insurance operations. 10,000 Failure of the Company to inform the Authority of the names of the Board members, General Manager, Authorized Manager or any of the senior officers as specified in the executive regulations of the Law. 20,000 Failure of the Company to notify the Authority of the names of Board Members, General Manger, Authorized Manager or any of the Senior Officers in case any of these positions is vacated within sixty days as from date of vacation. 20,000 Failure of the Company’s Board of Directors to provide the Authority with copies of the minutes of the Board's meetings and its resolutions related to the electing the company's chairman, his deputy, and the board's members authorized to sign on behalf of the company and their specimen signatures within seven days as from date of issuing these resolutions. 100,000 Failure of the Company to appoint or approve a licensed Actuary within a month as from date of obtaining its license. 10,000 The Company’s failure to report the appointment or approval of the licensed Actuary to the Authority within a month as from the date of appointing the actuary 50,000 Failure of the Company to provide any data or information requested by the Authority on the company or on any company possessively related or associated therewith during the period as determined by the Authority, in addition to any

data or information submitted by the Company to any other supervisory body and any data or information received by the company from these bodies on time of occurrence. 50,000 Failure of the Company to invite the Director General to attend the general assembly meetings before fifteen days at least as from date of its convention. 100,000 Failure of the Company, insurance related professions or any of their manager or employees to allow the person who was appointed by the Director - General to carry out inspections or audits on the books, entries, data and collect information on transactions, documents and audit reports. 50,000 Failure of the Company, insurance related professions to provide copies or photocopies of the books and data referred to in the previous Para to the person who was appointed by the Director - General to carry out inspections or audits 100,000 The company or any insurance-related profession or any of their managers or employees prevented, intercepted or obstructed any person appointed by the Director General to carry out inspections or audits. 100,000 Any person violated the rules governing ownership in insurance companies’ capitals, in accordance with the provisions of the Law and decision issued pursuant thereto. 10,000 Failure of any of insurance related profession to provide any data or information required by the Authority within the specified period. The Company’s failure to pay the remunerations 20,000 as determined by the Authority to experts,

experts, consultants, auditors or actuaries appointed by the Authority. 50,000 Disclosure of information by expert, consultant, actuary or auditor to any party whatsoever in violation to the Law. 100,000 Failure of the Company to provide the Authority with a consolidated annual report on its operations, including all audited annual financial statements, reports and lists in accordance with the requirements of the Law and Financial Regulations. 50,000 Failure of the Company to provide the Authority with the consolidated annual report signed by the chairman of its board of directors, the authorized manager or those authorized to sign on behalf of the company. 50,000 Failure of the Company to provide the Authority with the consolidated annual report within a period not exceeding four months from the end of the fiscal year. 200,000 Failure of the Company to provide the Authority with the consolidated annual report within at least thirty-days period prior to inviting the company's general assembly to convene. 100,000 Failure of the Company to provide the Authority with quarterly financial statements and reports within the period specified period. 100,000 Failure of the Company to provide the Authority with the requirements of the reports, certificates, endorsements and the annual and quarterly financial forms in accordance with the systems adopted by the Authority. 0.5% of the total not settled due amount for each day of delay with a maximum limit of (AED 250,000) The Company delay in paying the supervision and control fees within four months as from the end date of the fiscal year in accordance with the forms adopted by the Authority. . 0.5% of the total not settled due amount Failure of the Company to pay the amount of qualification and training within four months as from the end date of the fiscal year.

for each day of delay with a maximum limit of (AED 100,000) 100,000 The Company's failure to correct and present the financial accounts and loss and profit accounts to the Authority for approval before submitting them to the general assembly, despite the objection of the Director General. 100,000 Failure of the Company, that faces unfavourable financial or administrative situations or inflicted grief losses affecting the rights of the insured or the beneficiaries, represented by the Company’s Chairman or its General Manager to forthwith inform the Director General of the Authority as so. 50,000 Failure of the Company to provide provide the Authority with any or all of the following a) The insurance policies' specimens and endorsements they have approved for its operations including the general and special terms and conditions and the technical basis of these policies and the premiums’ ratios annexed thereto b) The schedules of the surrender values of the policies of the insurance of persons and funds accumulation operations and the premiums’ ratios annexed thereto. 20,000 Failure of the Company to provide the insured and the beneficiaries with copies of the insurance policies and the related details. 20,000 Failure of the Company to comply with the doctrine of disclosure and transparency in their dealing with their clients and in respect of all the documents, papers, bulletins, advertisements, propaganda and essays and scientific materials in accordance with the resolutions issued by the Board to ensure the implementation of this obligation. 50,000 Failure of the Auditor to forthwith file a report to the Authority with copy thereof to the company's

chairman of the board of directors in any of the following cases:
A. Should he become evident that the financial situation of the company does not enable it to fulfil its liabilities towards the insured or hinders its capacity to meet the financial requirements provided for in the law herein and the regulations, rules, directives and resolutions issued pursuant thereto relevant to the financial situation of the company. B. Should he become evident that there is grief imperfection in the company's performance of its financial procedures.
C. Should he refuse or have reservations in
respect of any certificate issued by the company related to its income or its financial statements. D. Should he decided to resign or refused to be reappointment with the company for unusual reasons. 50,000 Failure of the Company’s auditor to provide the Authority directly within the specified period with the information needed to supervise the company's operations. 100,000 Failure of the Company to comply with the provisions governing its own deposit, as defined by the Law. 100,000 Failure of the Company that carry out any of Persons or Funds Accumulation Insurance Operations to maintain funds therewith in the State equivalent in their value to the total amount of the special mathematical reserve of the contracts concluded inside the State or of those that are implemented therein. 150,000 The company's practice of insurance operations without being registered in the Register for the same class of insurance operations. 150,000 The company made reinsurance with another company not licensed to practice the class of insurance entrusted therewith to reinsure. 250,000 The insurance company concluded insurance contracts in classes of insurance for which there

is a decision to cease operations or cancel the license of such insurance classes. 250,000 Failure of the Company to fulfill its liabilities accrued from the contracts concluded prior to the cessation of the operations or the cancellation of the license. 100,000 Failure of the insurance companies’ branches to appoint an Authorized Manager for their branch to carry out the business on their behalf. 10,000 Failure of the foreign company, in the event of appointing an Authorized Manager for its branch to attach along with the appointment resolution an official document and an attested copy thereof in order to be deposited with the Authority authorizing him to exercise all necessary powers to manage the branch including the following:
A. Issuing insurance policies and their annexes; B. paying the accrued indemnities.
C. Representing the company before, the
courts of jurisdictions, and all official and non-official bodies in connection with the branch's operations and management. D. Receipt of warnings and all notices and correspondences directed to the company. 20,000 Failure of the foreign insurance companies’ branches to notify the Authority of the name of the Authorized Manager within a month as form date of his appointment or failure to appoint a replacement thereto within a month as from date of vacating his position. 100,000 Failure of the foreign insurance companies’ branches to publish the Company's consolidated final accounts in two widely circulated daily newspapers issued in Arabic and English. 250,000 The Representative offices of the foreign insurance companies carried on their tasks in the State before obtaining a license from the Authority.

10,000
The Company engaged in insurance of Persons and Funds Accumulation Operations discriminated between a policy and another of the same type in respect of insurance premiums or profit amounts allotted to the policyholders or in any other conditions. 100,000 The failure of the Company engaged in insurance of Persons and Funds Accumulation Operations to examine its financial status. 100,000 Failure of the Company engaged in insurance of Persons and Funds Accumulation Operations to assess the outstanding liabilities related thereto at least once every three years by an actuary. 10,000 Failure of the Company engaged in insurance of Persons and Funds Accumulation Operations to examine its financial status in accordance with the assessment procedures referred to in the Law, when determining percentage of profits to be allotted to the shareholders or policyholders. 10,000 Failure of the Company engaged in insurance of Persons and Funds Accumulation Operations to examine its financial status in accordance with the assessment procedures referred to in the Law, whenever it publicizes its financial status 10,000 The Company engaged in insurance of Persons and Funds Accumulation Operations refused to examine its financial status in accordance with the assessment procedures referred to in the Law. 25,000 Failure of the Company to provide the Authority with a copy of the expert's report on the findings of the examination and the assessment of the financial status referred to in the Law within six months as from the expiry of the period for which the examination was conducted. 10,000 Failure of the Company to attach the documents referred to in Article (62) of the Law with the

expert's report on the findings of the examination and the assessment of the financial status. 100,000 The company engaged in insurance of Persons and Funds Accumulation Operations deducted whether directly or indirectly any part of the funds intended to meet their liabilities accrued from the insurance policies in order to allocate as profits for the shareholders or the policyholders or to pay any amount other than their liabilities according to the insurance policies they have issued. 25,000 The company engaged in insurance of Persons and Funds Accumulation Operations issued saving bonds for a period exceeding thirty years 25,000 The company engaged in insurance of Persons and Funds Accumulation Operations issued saving bonds for a period of twenty-five years or more where the surrender value after the twenty fifth year is less than the full amount of the mathematical reserve. 25,000 The company engaged in insurance of Persons and Funds Accumulation Operations obliged the bearers of the saving bonds to pay premiums not equal in amounts or receding. Failure of the Company to include invalidation 25,000 clauses to be used by the company as an argument in face of the bearer for delaying payment of the premium. The Company invalidated the contract before 25,000 lapse of three months as from the due date of the premium as from date of serving a notice on the bearer of the bond by a registered letter if the bond is nominal. Failure of the company to specify in the bonds 25,000 that the right therein shall pass to the beneficiaries by reason of the death of the bearer of the bond without paying any additional amounts or imposing any further conditions.

The company licensed to operate in the free 250,000 zones performed its activity outside these zones inside the State without obtaining license from the Authority. The insurance agent carries out the operations 250,000 of an insurance agent for more than one company. Any person carries out the operations of 250,000 insurance-related professions without obtaining the license and registration from the Authority. 100,000 Failure of the Company to comply with the rules of transfer of insurance policies & cessation of operations as specified in the Law. 200,000 The company initiated or intended to initiate a merger before filing an application for merger to the Director General. 100,000 Failure of the companies, which are parties of the merger to let the insured review the agreement that organizes the merger process or failure to display the merger agreement at the main office of each one of these companies for fifteen days as from date of publishing the resolution of merger in the Official Gazette. 50,000 The liquidator violates his liabilities that are specified in the Law. 50,000 The company reluctance or failure to provide clarifications on the complaints received by the Authority concerning the insurance operations carried out by the company inside the State. 25,000 The Company delay in providing clarifications on the complaints received by the Authority concerning the insurance operations carried out by the company inside the State within the period specified by the Authority. 20,000 Failure of the company to pay the expenses of publishing any of the decisions issued by the Authority in accordance with the relevant Law and regulations, including registration's suspension, cancellation, or re-registration or the decisions related to companies' merger, acquisition, liquidation, or termination.

100,000
Any person refused to provide the Authority with documents, information and data that must be submitted in accordance with the Law and regulations issued thereunder. 50,000 Obstruction of the Director General or his authorized representative in carrying out his duties or intervention to prevent them from obtaining information. 50,000 Failure of the Company, Insurance Broker or insurance Agent to include the schedule of the policy and the insurance certificate in the insurance premium / subscription that is clearly collected from the client, including all allowances, expenses and commissions. 250,000 The insurance Broker or insurance Agent charged any additional amounts or expenses to the net insurance premium specified by the insurance company. 50,000 The insurance Broker combined between his position as an insurance Broker and the position of an insurance Agent, insurance Consultant, Loss & Damage adjustor or actuary. Failure of the insurance Broker to comply with 50,000 the rules of professional practice as specified in the regulations. Violation of the insurance Broker of the 50,000 conditions and procedures of licensing and registration specified in the regulations. 10,000 Violation of the insurance Broker of the conditions of the technical and administrative staff in accordance with the regulation. 10,000 Violation of the insurance Broker of the requirements and conditions of the Conditions for getting the Professional Indemnity Insurance Policy, specified in the regulations. 20,000 Violation of the insurance Broker of the requirements and conditions of the Internal Bylaws , specified in the regulations.

50,000
Violation of the insurance Broker of his obligations towards the Insurance Authority, the insurance company or the clients in accordance with the Insurance Brokerage Regulations. 50,000 The insurance Broker's violation of the terms of opening branches of the insurance Brokers. 100,000 The insurance Broker or insurance Agent carried out their business or marketed insurance services through persons, who are not licensed by the Insurance Authority or working therein. 100,000 The company contracted with a person not registered in Authority’s Register of Insurance Agents to authorize him to carry out the insurance agent operations. 50,000 The insurance Agent practiced his business for a company not licensed or registered by the Authority. 50,000 The insurance Agent carried out his business without concluding an agency contract with the Company. 10,000 Failure of the insurance Agent to submit a copy of the agency contract with the Company to the Authority. 50,000 The insurance Agent assigned the agency contract or authorized a third party to practice the insurance operations authorized to him. 50,000 The insurance Agent practiced the profession of an insurance Broker. 20,000 The insurance Agent combined between the types of insurance without complying with the terms and conditions specified in the Regulations. 10,000 Violation of the insurance Agent of the requirements of the Professional Indemnity Insurance Policy specified in the regulations. 5,000 The insurance Agent’s violation of the terms and conditions for licensing, specified in the regulations 50,000 Violation of the insurance Agent of the decision of suspending him from practicing the business.

50,000
Violation of the insurance Agent of the conditions for opening a branch of the insurance Agency inside the State. 20,000 Failure of the insurance Agent to comply with his duties specified in the regulations. 50,000 Failure of the insurance Agent to deposit all insurance premiums or any amounts received in his capacity as an insurance Agent for the Company in a special account in a bank operating in the State, and dedicating this account to deposit these amounts and paying them as specified in the regulations. 20,000 Failure of the insurance Agent to comply with the rules of professional practice as specified in the regulations. 10,000 Violation of the insurance Agent of the provisions of the insurance agents’ registration requirements. 20,000 Failure of the health insurance TPA company to comply with the laws and instructions issued by the medical authorities of the Emirate in which it operates. 50,000 Failure of the Health Insurance TPA company to comply with the permissible business limits to practice. 50,000 Failure of the Health Insurance Health Insurance TPA company to comply with the licensing conditions. 50,000 The Health Insurance TPA company sold or marketed health insurance policies. 50,000 The Health Insurance TPA ownership or shares in the capital or management of any medical facility or health insurance company. 50,000 Failure of the Health Insurance TPA to separate its accounts from the accounts of funds generated from its activities in the health insurance claims. 100,000 The Health Insurance TPA entered into agreements to provide services inside the State with an insurance company not licensed to operate in the State.

10,000 Failure of the Health Insurance TPA to comply with the conditions for the staff working therein. 50,000 Violation of the Health Insurance TPA of the of the terms and conditions of the agreements concluded with the insurance company and medical service providers. 10,000 Failure of the Health Insurance TPA to provide the Insurance Authority with the agreement concluded between it and the insurance company and providers of medical service providers within the specified period. 10,000 Failure of the Health Insurance TPA to notify the Insurance Authority of any change to the data or information based on which the TPA was licensed immediately as such change occurs. 10,000 The Health Insurance TPA made changes to the information based on which the TPA was licensed in violation of the provisions of the relevant instructions and decisions. 50,000 Failure of the Health Insurance TPA to comply with its duties specified in the Instructions for Health Insurance Third Party Administrators. 20,000 Faire of the Health Insurance TPA to comply with the rules of practicing the profession specified in the instructions. 50,000 Failure of the Health Insurance TPA to maintain records and books containing all matters related to its business and not maintaining the agreements concluded with the Insurance Company and the Medical Service Providers. 10,000 Failure of The Health Insurance TPA to provide the Insurance Company with all records and books, in case of terminating the agreement concluded with them. 50,000 Violation of the Health Insurance TPA of the conditions of opening a branch inside or outside the State. 20,000 Violation of the insurance Consultant of the conditions and procedures for licensing as specified in the regulations. 20,000 Violation of the licensed and registered insurance Consultant of the general provisions specified in the regulations. 10,000 Violation of the Insurance Consultant of his obligations or duties specified in the regulations.

20,000
Failure of the insurance Consultant to comply with the rules of practicing the profession in accordance with the regulations. 5,000 Failure of the insurance consultant to notify the Authority of any modification or change in the content of the documents and data based on which he was licensed within the specified period. 50,000 Violation of the licensed and registered Actuary of the general provisions specified in the regulations. 50,000 Violation of the Actuary of the conditions and procedures that should be met for licensing actuaries. 10,000 Failure of the Actuary to notify the Authority of any change in the content of the documents and the data based on which he was licensed within a maximum period of (10) days. 5,000 Failure of the Actuary to notify the Authority in case the manager in charge position therein is vacant. 10,000 Failure of the Actuary to fill in the vacant position within a period of (three) months as from the date the position becomes vacant 10,000 Violation of the Actuary of the requirements of the Professional Indemnity Insurance Policy as specified in the regulations. 5,000 Failure of the Actuary to inform the Authority that he is providing services in his capacity as an employee or appointed actuary under a contract within seven days as from the date of commencement of his relationship with the Company. 50,000 Violation of the corporate Actuary of the conditions of opening branches inside the State. 50,000 Violation of the Actuary of his obligations, duties, basic functions or the specified additional duties in accordance with the regulations.

20,000
Failure of the Actuary to comply with the rules of practicing the profession in accordance with the regulations. 20,000 Violation of Damage and Loss Adjusters of the conditions and procedures that should be met for licensing and registration in accordance with the regulations. 10,000 Violation of Damage and Loss Adjusters of the conditions for opening branches inside the State. 20,000 Failure of the Damage and Loss Adjusters to carry out their duties 20,000 Violation of the Damage and Loss Adjusters of the contents of the settlement report. 20,000 Violation of the Damage and Loss Adjusters of the requirements of the Records of the Dadmager and Loss Adjuster. 20,000 Failure of the Damage and Loss Adjusters to submit the data specified under the regulations. 20,000 Failure of the Damage and Loss Adjusters to submit the data specified in the regulations approved by an auditor registered by the Authority. 10,000 Failure of the Damage and Loss Adjusters to submit the data specified in the regulations within three months from the end of the financial year. 20,000 Violation of the Damage and Loss Adjusters of the decision of his suspension from practicing the operations. 50,000 for each point of sales The Company opened a point of sales for insurance products without being licensed and registered in the Insurance Authority Register. 10,000 The Company authorized a point of sales to pay compensations. 50,000 Violation of the Company of the conditions of licensing points of sale affiliated thereto. 50,000 Violation of the company of any of the duties and obligations of the point of sales towards customers.

10,000 Failure of the Company to renew the registration of the Point of Sales 20,000 The company registered its Point of Sale based on incorrect information or data. 20,000 Failure of the company to submit all records, documents to the Authority to supervise the Point of Sales or any of its employees, companies, customers or beneficiaries. 50,000 Failure of the Company’s Point of Sales to place all records, documents and entries at the disposal of the Authority and its employees. 25,000 Failure of the Company’s Point of Sales to cooperate with the Authority and its employees in order to fully carry out their work. 10,000 Failure of the Point of Sale to provide any data or information required by the Authority within the period specified by it. 20,000 Violation of the Company of its obligations under the motor vehicle insurance policy. 20,000 Failure of the Company to provide “substitute motor vehicle” or the allowance for renting an alternative motor vehicle. 5,000 The Company collected a passenger premium for persons not employed by the Insured. 50,000 Violation of the company of the tariff rate defined for motor vehicles insurance. 10,000 Violation of the company of the defined percentages of recoverable premium in the motor vehicle insurance policy. 20,000 Violation of the company of the general conditions in the motor vehicle insurance policy. 20,000 The company developed additional conditions without highlighting these conditions by different color or font and without being endorsed by the insured. 30,000 Failure of the Company to comply with the two forms annexed to the unified motor vehicle insurance policy, when issuing insurance policies against third party liability and against loss and damage. 10,000 The Company non observance of the Arab Treaty related to the Orange Card, when issuing the insurance policy.

25,000
The Company accepted the extension of the third party liability insurance policy to Arab countries under an insurance policy other than the Orange Card. 25,000 The Company refused the application for insurance policy against third party liability or against loss or damage of a motor vehicle that meets the applicable conditions of the Traffic Law. 25,000 The Company refused to renew the insurance policy of a motor vehicle that meets the applicable conditions of the Traffic Law. 25,000 The company discriminated between the insured in relation to insurance rates , conditions and benefits of insurance coverage on the grounds of age, gender, residence place, or lapse of less than one year after being granted the driving license, unless it presented satisfactory technical or legal reasons. 50,000 Failure of the company, in case of total loss to promptly pay the amount of compensation to the insured within the specified periods in accordance with the basis stipulated in the Unified Motor Vehicle Insurance Policies Regulations. 30,000 Failure of the Company, in case the claim was rejected to inform the claimant of the reasons of the rejection in writing along with a copy of the documents supporting the company's decision. 50,000 Failure of the Company to settle claims resulting from motor vehicle accidents within a period not exceeding fifteen days as from the date of receiving the complete documents of the claim. 30,000 Violation of the Company of the general conditions in the Unified Motor Vehicle Insurance Policies Regulations for the class of insurance policy issued by it. 50,000 Violation of the company of its liabilities under the Unified Motor Vehicle Insurance Policies Regulations for the class of insurance policy issued by it.

20,000
Violation of the company of the provisions specified for the termination of the motor vehicle insurance policy. 50,000 Violation of the company of the general provisions specified in the motor vehicle insurance policy. 20,000 Violation of the Company of the depreciation percentages for parts of motor vehicles specified in the motor vehicle insurance policy for the class of insurance policy issued by it. 20,000 Violation of the Company of the percentages of recoverable premium in case the motor vehicle policy was terminated. 20,000 Violation of the company of the basics of claims settlement in accordance with the instructions. 30,000 Violations of the Takaful insurance company of the terms and conditions of membership contribution document for Takaful insurance. 30,000 Violation of the Takaful insurance company of the provisions of founding the Shari’a Supervisory Committee in accordance with the legislations issued by the Authority. 20,000 Violation of the Takaful insurance company of the terms and conditions of membership in the Shari’a Supervisory Committee in accordance with the legislations issued by the Authority. 10,000 Failure of the Takaful insurance company to develop an internal bylaws for the work of the Shari’a Supervisory Committee in accordance with the legislations issued by the Authority. 10,000 Violation of the Takaful insurance company of the conditions for appointing the Shari’a Controller in accordance with the legislations issued by the Authority. 20,000 Violation of the Takaful insurance company of the provisions of dividing the family Takaful insurance account in accordance with the legislation issued by the Authority. 20,000 Violation of the Takaful insurance company of the provisions of the accounts related to the classes and types of Takaful insurance in

accordance with the legislation issued by the Authority. 50,000 Violation of the Takaful insurance company of the provisions of Rights of Participants and sharing the surplus in Participants’ accounts in accordance with the legislation issued by the Authority. 15,000 Failure of the Takaful insurance company to respond within (ten) working days to the request of the participant of Takaful Family Insurance Account by providing him with a copy of the Actuary’s report concerning the audit of the account of this type of Takaful insurance. 100,000 Violation of the Takaful insurance company of the terms and conditions of “Qard Hasan” specified in accordance with the legislations issued by the Authority. 50,000 Violation of the Takaful insurance company of the terms and conditions of Re-Takaful specified in accordance with the legislations issued by the Authority. 50,000 Violation of the Takaful insurance company of the terms and conditions of establishing a Zakat Fund for its own self, in accordance with the legislations issued by the Authority.