Mandatory professional liability insurance for notaries, experts, and translators under latest UAE laws
In a significant development for professionals involved in onshore court proceedings in the United Arab Emirates (UAE), Ministerial Decisions No. 208/2024, No. 211/2024, and No. 215/2024, issued on May 15, 2024, provide crucial details on professional indemnity insurance (PII) policies. However, a comprehensive understanding of the specific stipulations, coverage limits, and procedural requirements for private notaries, translators, and experts under these decisions is not publicly outlined in the retrieved data.
Professional indemnity insurance policies, common in sectors such as legal professionals, consultants, translators, and court experts, typically cover claims stemming from professional negligence, errors, or omissions that cause loss or injury to clients. In the UAE, most PII policies exclude coverage for gross negligence, fraud, or willful misconduct, leaving the individual or firm directly liable for such acts.
The UAE legal environment mandates that any contractual attempts to exempt parties from liability for unlawful acts are null and void, emphasizing the protection of third parties using such professional services. Insurers operating in the UAE must comply with the Insurance Law, which sets prudential requirements including minimum capital deposits and solvency tests, supervised by the Central Bank.
While the general principles governing professional indemnity insurance in the UAE are clear, the exact requirements for private notaries, translators, and experts under the recent Ministerial Decisions remain to be fully understood. The new laws have the potential to impact practices in the UAE for the better, encouraging risk management measures to reduce claims and insurance premiums among these professionals.
The Ministerial Decisions are related to Federal Decree-Law No. 20/2022, 21/2022, and 22/2022, and their Implementing Regulations contained in Cabinet Decision No. 16/2024, 17/2024, and 18/2024, respectively. Minimum coverage amounts are mandated, particularly for policies obtained by expert and translation houses. The required policy term is three years, reflecting the term of registration for these professionals on the relevant UAE roll or register.
The new laws are likely to drive increased demand for professional liability insurance products tailored to translators, experts, and notaries. Insurers are expected to offer policy products that meet the specific requirements outlined in the Ministerial Decisions, including minimum coverage limits and non-revocable terms. The mandatory insurance requirements should provide a greater level of protection for affected clients and claimants, offering coverage for perils beyond negligent practices, such as defamation, dishonesty, and fraud.
For precise policy requirements, coverage limits, and application procedures mandated by these ministerial decisions, it is recommended to consult the official UAE legal gazette or the relevant UAE ministry’s publications directly.
- Given the new Ministerial Decisions in the UAE, professional indemnity insurance (PII) policies for private notaries, translators, and experts might have unique requirements, such as minimum coverage limits and non-revocable terms.
- In the context of the UAE's business environment, the recent Ministerial Decisions on professional indemnity insurance (PII) are expected to significantly impact the insurance landscape, particularly for sectors like translation, expert services, and notaries, potentially reducing claims and insurance premiums.
