Mandatory professional liability insurance coverage for notaries, specialists, and translators now enforced in the UAE
In the United Arab Emirates (UAE), a series of recent Ministerial Decisions have brought clarity and detail regarding professional indemnity insurance (PII) for experts, translators, and private notaries. These decisions are connected to Federal Decree-Law No. 20/2022, No. 21/2022, and No. 22/2022, and their Implementing Regulations contained in Cabinet Decision No. 16/2024, No. 17/2024, and No. 18/2024, respectively.
The new requirements aim to provide a greater level of protection for affected clients and claimants. The mandatory insurance policies, with a term of three years, reflect the term of registration for these professionals on the UAE roll or register. Coverage is provided for specific types of cases, including loss, damage, destruction of documents, negligence, breach of duty, dishonesty, fraud, deception, disclosure of information, libel, defamation, and any other compensations adjudged for professional and technical errors.
The new requirements cover a range of perils beyond negligent practices, including defamation, dishonesty, and fraud. Insurers must offer policy products that meet the specific requirements outlined in the Ministerial Decisions, such as minimum coverage limits and non-revocable terms.
While the specific details and requirements of the PII policies for UAE notaries, experts, and translators as outlined in Ministerial Decisions No. 208/2024, No. 211/2024, and No. 215/2024 are not directly provided in the available search results, we can summarize the general framework and considerations likely relevant to these policies.
The insurance policies under these ministerial decisions typically require compliance with UAE Central Bank regulations and insurance law, ensuring solvency and protection for claimants. Insurers must maintain deposits of at least 6 million AED (approx. US$1.6 million) as per broader UAE Insurance Law stipulations. The professional indemnity coverage must align with the service nature, and insurers may impose specific policy terms such as minimum limits of indemnity, run-off cover provisions, and clear protocols for policy cancellation and notification requirements to the licensing authorities.
It is also likely that these Ministerial Decisions specify minimum insurance limits, conditions for claim handling, and insurer licensing requisites consistent with UAE Insurance Law and Central Bank regulations. To obtain the precise policy terms, coverage limits, and procedural requirements of Ministerial Decisions 208/2024, 211/2024, and 215/2024, consulting the official UAE Ministry of Justice or Ministry of Economy publications or official gazette releases is recommended.
These new laws are likely to drive increased demand for professional liability insurance products tailored to translators, experts, and notaries. The mandatory insurance requirements have the potential to impact practices in the UAE for the better, encouraging risk management measures to reduce claims and insurance premiums.
The insurance policies established by these ministerial decisions in the UAE are expected to overlap with the financial sector, as they require compliance with UAE Central Bank regulations and insurance law. The business community, specifically translators, experts, and notaries, may need to invest in tailored professional liability insurance products due to the new mandatory insurance requirements.
