They confirmed the illegality of the request to sign the “Know Your Customer” form to complete the vehicle insurance

Insurance experts: Disclosure of the salary is related to vehicles of “one million dirhams” or more

“Disclosure” does not apply to vehicles if their value is less than one million dirhams.

Photography: Ashok Verma

Two experts in the insurance sector said that the requirement for the insured to disclose the value of his salary, or his monthly income, and residence data in the UAE and in his home country, as part of the “Know Your Customer” initiative, applies if the value of the insured vehicle amounts to one million dirhams or more, and a premium Insurance for it exceeds 15 thousand dirhams.

They confirmed to "Emirates Today" that it is illegal to oblige the insured to sign the "Know Your Customer" form, in the event that the value of the vehicle or the insurance premium on it is less than that, considering that this is an explicit violation of the instructions of the Central Bank.

Customer notes

And «Emirates Today» had received complaints and notes from dealers against “insurance brokers” who required signing a disclosure form, to complete insurance on their vehicles, and considering this as basic requirements by the Central Bank, in addition to the companies that sell the documents for their benefit.

The dealers explained that the value of the agreed insurance premiums on vehicles ranges between 1400 and 2500 dirhams only, noting that it is the first time that such information is requested when securing vehicles.

Disclosure form

According to the disclosure form sent to the customers, and Emirates Today obtained a copy of it, the customer must write down information that includes his name, place of birth, nationality, residential address within the country, and in his country of origin (if he is non-Emirati), as well as the value of income or Salary, job title, whether he works in the government or private sector, as well as whether he is a freelancer, in addition to the Emirates ID number, date of issue and expiry, driver's license number, and details.

Disclosure terms

An expert in the insurance sector, Suleiman Ibrahim, said that the insured’s disclosure of their income details within the Central Bank’s initiative: “Know your customer” depends on the value of the car to be insured, as it must not be less than one million dirhams, which means that the resulting insurance premium will be around 15. A thousand dirhams.

He added, "If the insurance premium is less than that, the insured customer should not sign a disclosure in this way," indicating that this "disclosure" is within the Central Bank's requirements related to combating money laundering, but it does not apply to vehicles if their value is Less than one million dirhams.

clear violation

For his part, the insurance expert, Basil Al-Ali, said that the request for the insured to sign the income disclosure form and “know your customer” data is an illegal practice, as long as the value of the vehicle is less than one million dirhams, and the insurance premium is less than 15 thousand dirhams.

He continued, "Therefore, if this request is made by insurance brokers or companies, the customer must not comply with it, as it is an explicit violation of the instructions of the Central Bank."

Al-Ali added, "Some employees, perhaps new ones, do not have sufficient experience in this particular issue, but the customer must know his rights, and ask about the details of any papers before signing them."

Follow our latest local and sports news and the latest political and economic developments via Google news