Once enforced, the bill will introduce stricter requirements for issuing insurance licenses. The proposed deposit to start insurance services will increase from the current MVR 10 million to between MVR 30 million and MVR 50 million.
An insurance bill has been submitted to the parliament for the first time to establish a law regulating insurance services in the Maldives.
The bill, submitted by Mahibadhoo MP Ahmed Thoriq on behalf of the government, aims to provide a comprehensive legal framework for the insurance industry.
Currently, insurance services are governed by the 1998 Monetary Act, with a minor regulation added in 2004 allowing the business to operate under licensing permits.
"There are five companies currently licensed to provide insurance services, along with 10 brokers and 60 agents in the Maldives," said MP Thoriq.
He said that although this is a relatively small number, the impact on the people of the Maldives is significant.
The primary objectives of the bill are to ensure the safe conduct of the insurance business, protect the rights of policyholders, mitigate adverse impacts on the insurance sector, and expand the sector.
Once enforced, the bill will introduce stricter requirements for issuing insurance licenses. The proposed deposit to start insurance services will increase from the current MVR 10 million to between MVR 30 million and MVR 50 million.
MP Thoriq emphasized that the bill grants more powers to the regulatory authority and called for the government to consult with insurance service providers to consider strengthening the bill during the committee stage.
The bill also introduces penalties for operating without a permit, claiming to conduct business, and soliciting insurance policies without a license, with fines ranging from MVR 100,000 to MVR 5 million.
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