Mandatory professional indemnity insurance for notaries, specialists, and translators now law in the UAE
In the United Arab Emirates (UAE), the professional landscape for notaries, translators, and experts is undergoing a significant change. Ministerial Decisions 208/2024, 211/2024, and 215/2024, along with their implementing regulations, have set forth mandatory professional indemnity insurance (PII) requirements for these professional categories. However, the specific details of these requirements are not readily available in search results.
Professional indemnity insurance is a crucial safeguard for professionals, providing protection against claims of negligence or errors. For instance, tax agents in the UAE are already required to hold PII as part of their licensing conditions, with registration fees and periodic renewals specified by the Federal Tax Authority.
The new Ministerial Decisions are expected to outline coverage limits, the scope of covered activities, duration, and solvency or capital requirements insurers must meet to cover private notaries, translators, and experts. These regulations typically define the minimum sum insured, exclusions, claims handling procedures, and qualifications needed for insurers to provide PII to these professionals.
Under the UAE’s insurance law and prudential regimes, insurers offering liability coverages, including professional indemnity, are subject to solvency requirements. This ensures that insurers servicing PII policies maintain sufficient capital to fulfill claims.
General PII policies cover legal costs and damages resulting from claims of professional malpractice or errors, protection against negligence claims related to documentary or expert services provided, and possible extensions for defense costs, loss mitigation, or breach of confidentiality.
Regulatory authorities often require periodic proof of PII coverage upon licensing or renewal, and policies must align with professional standards and statutory requirements outlined in the ministerial decisions and their implementing regulations.
The mandatory insurance requirements are expected to provide a greater level of protection for affected clients and claimants. The minimum coverage amounts for the policies are substantial, particularly for policies obtained by expert and translation houses. The coverage is required for a range of perils, not just negligent practices, including defamation, dishonesty, and fraud.
The required policy term is three years, reflecting the term of registration for experts, translators, and private notaries on the relevant UAE roll or register. The insurance sector is expected to see increased demand for professional liability insurance products tailored to translators, experts, and notaries.
Insurers must ensure that their policy products meet the specific requirements outlined in the Ministerial Decisions, such as the minimum coverage limits and non-revocable terms. Compliance with these requirements could lead to improved practices among UAE's notaries, translators, and experts, encouraging them to adopt strong risk management measures to reduce claims and insurance premiums.
For authoritative and detailed policy terms, consulting the official UAE government legal publication or the relevant UAE Ministry or Insurance Authority websites is recommended. Legal counsel or insurance specialists licensed in the UAE would provide the most accurate and current details tailored to these professions.
The new Ministerial Decisions are part of a broader regulatory effort related to the Notarial, Expertise, and Translation professions in the UAE. They are connected to Federal Decree-Law No. 20/2022, No. 21/2022, and No. 22/2022, and their Implementing Regulations contained in Cabinet Decision No. 16/2024, No. 17/2024, and No. 18/2024. These decisions aim to further regulate and standardise these professions in the UAE.
Technology plays a crucial role in the implementation of these new Ministerial Decisions, as digital platforms can streamline the process of obtaining and verifying professional indemnity insurance (PII) for notaries, translators, and experts.
Implementing digital solutions can help reduce the time and effort required to submit applications, pay premiums, and renew policies, thus increasing efficiency in the professional landscape.
