Two Key Regulations Enacted to Implement Maldives Insurance Act

Two key regulations required to implement the Maldives Insurance Act have come into force.

The regulations—the Regulation on Insurance Risks in the Maldives and the General Insurance Regulation—were formulated by the Maldives Monetary Authority (MMA) and published on August 27.

The Regulation on Insurance Risks in the Maldives defines the types of risks considered to be located within the country. It also specifies the circumstances in which exemptions may be granted from the requirement to obtain insurance coverage from a licensed insurer operating in the Maldives.

The regulation covers exemptions listed on the MMA’s website and other cases in which parties may apply directly to the authority. It also establishes procedures for obtaining or negotiating insurance coverage from an unlicensed provider for risks located in the Maldives.

Risks covered by the regulation include those involving real estate and other property within Maldivian territory, residents of the Maldives, liabilities connected to property or individuals in the country, and businesses legally registered in the Maldives.

Meanwhile, the General Insurance Regulation defines the scope within which legally authorised entities may solicit insurance business in the country. It also sets out the eligibility criteria and application requirements for insurance broker licences, along with procedures for taking administrative action under the Insurance Act.

The regulation further establishes licensing conditions for insurance companies, requirements for licensing their branches and subsidiaries, rules governing insurance funds, and security deposit obligations.

Under the regulation, every insurance company operating in the Maldives must maintain a security deposit of MVR 2 million.

The MMA opened both regulations for public consultation on August 14 before bringing them into force.