Laws implemented in the UAE now require notaries, experts, and translators to carry professional indemnity insurance.
In a move to enhance legal accountability and consumer protection, the United Arab Emirates (UAE) has implemented new Ministerial Decisions that require certain professionals involved in onshore court proceedings—such as notaries, translators, and experts—to obtain Professional Indemnity Insurance (PII).
Details of the Coverage Requirements:
The exact minimum coverage amounts for these professionals, as specified by the 2024 Ministerial Decisions, are not explicitly detailed in the available search results. However, typical professional indemnity policies in the UAE generally cover significant financial exposures related to professional negligence. In regional practice, minimum coverage often ranges in the hundreds of thousands to millions of UAE dirhams, depending on the risk profile of the professional services provided.
The insurance policies must cover claims made during the policy period, often extending to include claims-made or claims-occurring basis, with a typical term being at least one year. There are also stricter notification and policy cancellation protocols to maintain continuous cover without lapses.
These policies primarily cover claims related to professional negligence, errors, and omissions that cause financial loss to clients or third parties. They generally exclude cover for gross negligence, fraud, or willful misconduct, leaving the individual or firm fully liable in such cases. Typical covered claims include errors in documentation, incorrect translations, mistakes in expert opinions, or other failures in professional duties.
Implications:
This mandate improves legal accountability and consumer protection by ensuring affected parties have recourse to compensation via the insured professionals’ indemnity insurance. It raises the cost and administrative requirements for professionals working in UAE onshore courts, necessitating due diligence in obtaining and maintaining adequate insurance coverage.
Insurance companies underwriting these risks must comply with UAE’s prudential solvency regulations, including maintaining a Solvency Capital Requirement and Minimum Guarantee Fund, ensuring they can reliably meet claims obligations.
In summary, the 2024 UAE Ministerial Decisions require affected professionals to hold professional indemnity insurance with sufficient coverage to protect against negligence claims. The policies must typically cover at least one-year terms, protect against financial losses from errors or omissions, and exclude willful misconduct.
The new requirements cover a range of perils beyond negligent practices, including defamation, dishonesty, and fraud. The required policy term is three years, reflecting the term of registration for the mentioned professionals on the relevant UAE roll or register.
Insurers must offer policy products that meet the specific requirements outlined in the Ministerial Decisions, such as minimum coverage limits and non-revocable terms. The mandatory insurance requirements should provide a greater level of protection for affected clients and claimants.
- The new Ministerial Decisions in the UAE require professionals involved in onshore court proceedings, such as notaries and experts, to have Professional Indemnity Insurance (PII) with sufficient coverage, which typically covers significant financial exposures related to professional negligence in business.
- In the context of the 2024 Ministerial Decisions, insurance companies underwriting these risks for affected professionals must offer policies that cover at least three-year terms, protect against financial losses from errors or omissions, and meet the specific requirements outlined in the Decisions, ensuring a higher level of business protection for their clients and claimants.
