UAE to tighten insurance cover for ships flying its flag

UAE to tighten insurance cover for ships flying its flag

In line with the UAE’s steadfast dedication to safeguarding the local, regional, and global maritime industry through strong regulatory measures, the UAE Ministry of Energy and Infrastructure (MOEI) issued a circular requiring non-members of the International Group of Protection and Indemnity Clubs (IG P&I Clubs) to provide additional information to regulators if they insure any UAE-flagged ships.

This move reaffirms the Ministry’s unwavering commitment to upholding rigorous standards, and driving the progress of the maritime sector around the world.

According to the circular, non-members of the IG P&I Clubs are required to demonstrate that they have a minimum S&P Global rating of 'A', and provide a list of claims exceeding US$10 million, or details of the five largest claims they have handled, including information on whether they have been settled or are still in reserve, before 30th June 2023. These insurers must also provide evidence of membership with a recognised maritime professional agency or regulatory body, and demonstrate that they have professional indemnity insurance with a minimum limit of US$10 million.

Additionally, these clubs must have a claims settlement authority that is equal to or higher than the policy limit they offer; and provide copies of the Certificate of Insurance, approved financial certificates