Its use is limited to depositing installments and paying other companies' dues
The Central Bank calls for activating the “suspended account” requirements for insurance companies’ premiums
The Central Bank called for compliance with the instructions within 10 working days.
The Central Bank called on all insurance agents, insurance brokerage companies, and health insurance claims management companies licensed to operate in the country by the Central Bank, to activate the requirements of the “suspended account” for funds and premiums of insurance companies, so that this account is limited to depositing premiums and paying dues to companies. other.
The Central Bank confirmed, in a circular issued by it, bearing No. 4708/2022, of which Emirates Today obtained a copy, that companies must comply with the instructions within 10 working days, otherwise they will be subject to legal measures.
According to the details of the circular, activating the requirements of the suspended account requires that the account related to the insurance company’s funds or premiums be approved as a “suspending account” that is limited to depositing premiums or funds belonging to the relevant insurance company, and paying what is owed by the insurance company to others.
It is permissible to adopt one suspended account from which several suspended sub-accounts are branched, and each insurance company has a separate suspended account, according to the suspended account agreement that is signed in this regard.
He called on the “Central” to provide the Insurance Supervision Department at the Central Bank within 10 working days from the date of this notification, as a maximum, with details of all the company’s accounts related to the insurance business (the name of the bank, the account number, and the authorized signatory), certified by the external auditor. In addition to a copy of the suspended account agreement, or a copy of the request to open the suspended account, if the procedures for opening the account were not completed, and a copy of the bank accounts suspended every three months, duly certified by the concerned bank, with the quarterly financial statements of the company.
And the “Central” stressed in its circular that failure to comply with the aforementioned instructions may expose the company and the authorized signatory in the company’s accounts to legal procedures.
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