MP Hassan Zareer Criticises New Insurance Bill’s Steep Fines

Mathiveri MP Hassan Zareer of the ruling People’s National Congress (PNC) voiced his concerns over the newly proposed insurance bill, arguing that the fines stipulated are excessively high. 

This bill marks the first government initiative to regulate the insurance sector, introduced by Mahibadhoo MP and fellow PNC member Ahmed Thoriq.

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In today’s parliamentary debate,  Zareer highlighted that the Maldivian insurance industry is still in its “infancy” and called for measures to attract more companies to the sector. He advocated for revisions to the bill to create a more conducive environment for new insurance ventures, including a reduction in the proposed fines.

The insurance bill specifies that deliberate misrepresentation of facts with the intent to claim insurance money is a culpable offence, with fines ranging from MVR 100,000 to MVR 1,000,000, depending on the severity. 

Additionally, if an alleged offender attempts to obstruct official investigations into their actions, they could face fines between MVR 75,000 and MVR 750,000. For offences not explicitly covered in the statute, fines can range from MVR 5,000 to MVR 1,000,000 based on the severity.

In defence of the bill, Thoriq stated that its purpose is to strengthen the regulation of the insurance sector and prevent potential insurance fraud. The bill also aims to establish a licensing mechanism for insurance providers and affiliated businesses, oversee their activities, and develop a comprehensive legal framework for the sector.

While insurance fraud is not a widespread issue in the Maldives, cases have been gradually increasing, highlighting the need for robust regulatory measures.