A bill has been moved to the Parliament to impose fines of up to USD 325,534 for insurance businesses without a license. The bill moved by parliamentarian Toriq Ibrahim aims to maintain the quality of the Maldivian insurance sector.
Once the bill is passed, it will establish strong and safe rules for such businesses to maintain the quality of the insurance sector in the country. The bill also states that this will protect the rights of insurance policyholders, develop the sector and expand competition.
The purpose of the Act is to ensure that the insurance sector provides services in accordance with the needs of the public and facilitates the economic development of Maldives. Under the Act, insurance businesses will be conducted with a license issued by the Maldives Monetary Authority (MMA). MMA would have the power to impose fines of between USD 6,510 and USD 325,534 on unlicensed businesses.
Additionally, the act prohibits obtaining, attempting to obtain or assisting in obtaining an unfair advantage by giving false information. Those who take unfair advantage in this way can be fined between USD 6,510 and USD 325,534 depending on the size of the offence.
The bill also sets out the measures to be taken if an insurance company or affiliate violates the law.