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Dubai, 30 August, 2010: The Dubai Department of Economic Development (DED) issued 4,101 licences for several types of businesses in Dubai in the second quarter of 2010, recording a 42 per cent increase compared to the second quarter of 2009. A majority of the licences was issued in the commercial sector (3,094) followed by the professional sector (914), and industry (64).

‘Ready-made garments’ led the list of the top 10 licensed activities in the commercial category with 536 licences issued, followed by ‘Perfumes and cosmetics’ with 433 and ‘General trade’ with 431. ‘Restaurants’ led the list of the top 10 licensed activities in the professional category with 135 licences issued in the second quarter, followed by ‘Residences and building cleaning services’ with 131, ‘café’ with 68, ‘selling snacks’ with 62, and ‘men’s barber’ with 60.

In industrial activities, ‘Metal work industry for construction’ led the list of the top 10 licensed activities with seven licences followed by ‘Blacksmithing and welding workshops’ with six, and ‘Mirrors and glass work’, ‘Construction of metal parts ‘, and ‘Construction of metal industry’ with four licences each.

The Intlaq scheme, an initiative by the Department of Economic Development to encourage more UAE nationals to set up businesses from home, recorded strong performance with 649 licences issued in the second quarter of the year, a 50 per cent increase over the same period last year. The largest growth was recorded in the trade category with 575 licences followed by professional category with 74.

The total number of transactions during the second quarter of 2010 reached 101,982 compared to 90,638 during the same period in 2009, a 13 per cent increase. The number of renewed licenses was 22,842, while the total number of amended licenses reached 12,897 compared to 10,689 during the same period last year, a 21 per cent increase.

The total number of commercial permits reached 11,647, a 7 per cent increase compared to the same period last year, while the total number of field inspection visits was 13,991, and the total number of ‘Trade name reservation’ reached 13,056 names.

As summer sets in, remember to protect against mishaps

As summer vacations are about to set in, it is time for many to pack their bags and head off to a getaway. But before embarking on a foreign jaunt, many people hardly spare a thought to insure their travel as a protection against any mishap that could spoil their holidays.

Odds can weigh on any form of travel abroad and mess up the entire trip. And the recent trail of trauma experienced by scores of travellers because of flight disruptions in Europe due to Iceland’s volcanic ash cloud is a case in point.

Many holiday-goers assume travel insurance as an extra cost burden but compared to the miscellaneous costs of a holiday abroad, travel insurance premium costs very little, experts say.

Whether you are a business traveller or a leisure traveller, having travel insurance saves you from an array of misfortunes by providing insurance against baggage loss, injury, damage caused by accident, injury, sickness, emergency medical situations, theft, cancellation or interruption of travel arrangements, say experts.

Choose the right cover

Different travel insurers have different insurance plans covering different risks and clauses according to one’s needs. So, before laying your hands on any travel insurance plan, experts advise travellers to compare different insurance products such as claims settlement procedures, policy terms, payment options, network of hospitals and so on.

“There are travel insurance products available from different insurance companies, based on the type of benefits and coverage limits offered. It is important to understand the different types of policies that are available, and the coverage benefits that may be useful to each individual,” says David Hunt, Regional Head of Insurance, HSBC Middle East.

If you are a frequent traveller, it is highly recommended to purchase an annual multi-trip plan that covers you throughout the year for an unlimited number of trips. If you will be travelling with your family, you should include them as well, Hunt adds. “We provide an annual multi-trip plan and we recommend even non-frequent travellers to hold this policy as it will help them save money throughout the one- year period. For example, an adult travelling within Europe would need to take only two holidays in a year to make it worthwhile. Our travel protection programme provides coverage for various benefits such as emergency medical expenses, emergency medical evacuation, flight delay, death repatriation, baggage loss and baggage delay and have global service centre providing 24-hour assistance,” Hunt adds.

Pick the right insurer

Another point to consider for travellers buying travel insurance cover is to vet different insurance providers and the risks they’re covering, say experts.

“Choose the right insurer that owns a direct global presence through branches and operations within the country of destination and capabilities to service inquiries and claims by the 24/7 approach,” says Hemant Gupta, Regional Manager (Travel), AXA Insurance Gulf.

He says contrary to other insurance products, make sure you choose the product that offers a protection on different areas of risks. Basically a package of solutions for personal accident, personal liability, emergency medical expenses for in-patient and out-patient covers, travel-related exposures such as luggage delay/losses, accidental loss of money, important documents and personal belongings as well as trip cancellation/curtailment following insured perils.

“The moment of truth generally comes at the time of the claim. And therefore, you need to be sure that your insurer has the appropriate infrastructure that can help you find the necessary support at the right time and in the right place,” Gupta adds.

“When you are abroad, you are in unfamiliar surroundings and it is important to eliminate complications through a clear and simple process so that you as a customer have easy access to the insurer together with a clear set of procedures to submit a successful claim. It is important to know what has to be done following a loss with regard to the time of notification, loss declaration, determination of proximate cause as an insured peril whether connected or not with the chain of events that have finally caused the loss or losses and collecting the required official documents etc,” Gupta says.

As with all financial services, you need to ensure your policy is supported by a reputable organisation that has the financial strength and capability to service any potential claim, says Karl Gray, Head of Personal Lines (Middle East) RSA Insurance.

In the case of travel insurance, the global footprint of the company is also important. Does the company have the potential to service you 24 hours a day, seven days a week in any country in the world – in any language? As travel insurance is a relatively inexpensive form of insurance, it is normally a false economy to save a few dirhams at the expense of reduced cover, he adds.

Before you buy a plan…

- Study what is covered and what is excluded

- Make sure the service network of the insurer is able to handle claims at the right time

- Read the fine print of the policy cover

- Saving a few dirhams at the expense of reduced cover may not be the right approach

- Frequent fliers can opt for multi-trip plans

- Having health insurance does not mean you have cover for travel insurance.

Myths about travel insurance

Although travel insurance provides cover against a number of mishaps and inconveniences during the course of travel, experts say one of the biggest myths among travellers is to assume it covers against any risk under the sun.

“Travel insurance, as most forms of insurance, will not provide compensation to the insured for any and all events, which lead to a loss. Cover is normally restricted to specific “perils”. For example, cancellation cover normally only operates in the event of injury or death of the insured or a close family member,” says Karl Gray, Head of Personal Lines (Middle East) RSA Insurance.

He says it is important you read a sample or summary of the policy cover before purchasing and not wait until you have to make a claim. The policy should use a language, which is straightforward and simple to understand. Be cautious about a policy language that appears unduly “legalistic” or complex.

“Another mistake people make when it comes to travel insurance is missing the fact that travel insurance is not just a product but also the ability of an insurer to provide a global network of support to efficiently handle claims in terms of quick time response and quality of service,” says Hemant Gupta, Regional Manager (Travel), AXA Insurance Gulf.

Another mistake is assuming that certain types of cover will not be required and as a consequence purchasing a cheaper policy with restrictive cover.

Insurance by definition provides compensation for unexpected and unlikely events, so it is not sensible to assume you do not require a particular cover because the event is “unlikely” to happen.

Motorists cannot make claims if they meet with accident, insurance companies warn

Dubai: Insurance companies have warned motorists not to drive vehicles with an expired registration as they will not be able to claim insurance in case of accidents.

The warning came as the number of vehicles with an expired registration increased by at least 20 per cent this year. There are now more than 100,000 vehicles with an expired registration compared to 80,000 last year in Dubai. There is a total of 1.1 million registered vehicles in Dubai.

A Dubai Roads and Transport Authority (RTA) spokesman said: “Efforts to force motorists renew their vehicle registration have apparently not yielded any positive results”.

Insurance companies said motorists driving with an expired registration may lose their insurance claims in case of an accident.

No claim

AXA Insurance operational excellence programme manager Hassan Bennour said: “We are not liable to pay accident insurance claim to a motorist who drives a vehicle with expired registration and it is clearly mentioned in our insurance contract”.

However, Karl Gray, Director of Personal Lines, Middle East at Royal and Sun Alliance Insurance, said a motorist’s insurance claim could be limited if he drove with expired registration.

“Insurance accident claims can be restricted if a motorist meet an accident in a vehicle with expired registration,” he said.

In such cases, the insurance company would only pay the third party damage claim, he said.

“You can really face complications in claiming insurance if you do not renew car registration,” he added.

The RTA, in co-operation with the Dubai Police, has been urging drivers to renew their vehicle registration on time. Police have been issuing fines for vehicles being driven with an expired registration.

The RTA has also been sending SMS messages to motorists when their vehicle registration is due for renewal.

Ahmad Behroozian, Chief Executive Officer (CEO) of the Licensing Agency at the RTA said: “We need to increase the fines for not renewing registrations”.

He noted that the major reason for not renewing registrations was non-payment of fines. “We even introduced instalment plans to pay heavy fines but the problem still exists. We are also facing problems in getting payment as cheques given by some motorists to pay fines have also bounced,” he told Gulf News.

He said motorists should be given incentives such as the 50 per cent discount on fines offered by the Abu Dhabi Police to encourage drivers to pay fines and renew their vehicle registration.

Every vehicle in Dubai and elsewhere in the UAE must have its registration renewed every year after a technical inspection to ensure the vehicle’s roadworthiness. There is a grace period of one month, after which a fine of Dh20 per month is charged if registration renewal is delayed. Some motorists obtain only insurance and keep driving their vehicle without paying fines or renewing registration.

Move aims to accommodate more government departments to showcase their eServices

August 18, 2010

Dubai eGovernment has announced that its stand at the 30th edition of GITEX Technology Week will be three-folds bigger compared with its exhibition space in the 2009 edition. GITEX 2010 will be held from October 17 to 21, 2010, offering a unique opportunity for participants to exchange experiences and to explore the latest IT innovations and solutions.

Dubai eGovernment has always been keen since its inception in 2001 to participate in annual trade exhibitions, aiming to raise awareness of eServices through direct interaction with visitors and businessmen interested in technology. Each year during the weeklong GITEX fair, which is one of the most important international events in IT and computing, Dubai eGovernment offers several interactive presentations about the eServices provided by Dubai government departments to the public, businesses and visitors, in addition to the shared services being offered by Dubai eGovernment to government departments aimed at realising the collective goal of building a knowledge-based economy in Dubai. 

Ahmed Bin Humaidan, Director General of Dubai eGovernment, said: “We look forward to this year’s exhibition as it presents an opportunity to get acquainted with the latest IT experiences and solutions and work closer with participating organisations and exchange expertise with them. We will also try to cater for the needs of our visitors at GITEX, with the goal of improving the eServices in the emirate and enhancing the level of efficiency and excellence within different local government departments in line with our common goal of speeding up the transformation of Dubai into an integrated digital community. This is in accordance with the vision of H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to build a knowledge-based economy in line with the latest global trends of providing eServices through gateway eServices in order to respond to the daily requirements of all segments of society and ensure that customers have an easy and smooth access to thes
e eServices wherever they are and at any given time”.

“Dubai eGovernment is fully prepared to participate in this year’s GITEX as we have set up the perfect exhibition showcase that capitalises on our experiences in previous editions in collaborating with government departments and authorities. The exhibition space is three-folds larger this year to allow different departments to showcase their eServices under the umbrella of Dubai eGovernment. By gathering the largest number of government departments in one place, we aim to stimulate communication and cooperation among these departments in order to upgrade eServices and enhance their efficiency and encourage the public to explore these services. Dubai eGovernment will also be keenly monitoring events, press conferences and agreements signed at the event”, he added.

Dubai eGovernment, following the success of its participation in past GITEX editions, is strengthening its presence in this year’s edition by expanding its exhibition space to 2,800 square meters from just 800 square metres in 2009. The exhibition space shall be allocated to different departments based on the type of services they provide to the public. There are more than 2,000 eServices that will be featured for various members of the community such as citizens, residents, businesses and visitors.
 
The Dubai eGovernment exhibition will comprise a network of workstations for visitors to try out all eServices that can be accessed through the official portal of the Government of Dubai (dubai.ae). The special website www.gitex.dubai.ae for public information covering the services of participating departments and associated events will also be launched.

The Central Bank of Bahrain (CBB) announced yesterday that representatives of insurance companies will need a minimum qualification to practise in the country, said a press statement.

The CBB is the first regulator in the Middle East to introduce such requirements that will strengthen the public perception of the insurance market. To underpin this initiative, the BIBF and the CII worked together to introduce international recognised qualification with a regional emphasis.

“By introducing this ancillary profession, the CBB expect that the insurance market will grow many folds and the buying public can be assured that they are dealing with well trained and competent insurance representatives”, said Nader Al Mandeel, Director, Insurance Supervision Directorate, CBB.

“With the support of the BIA and BIBF and the association of the CII, the CBB see this as an opportunity for the insurance sector to expand their sales force which would in turn increase the insurance premiums both in life and general classes”, added Al Mandeel.

The representatives qualification has been recognised by the Central Bank of Bahrain as a requirement for insurance agents in the insurance industry.

Commenting on this occasion, Yasser Albaharna, Vice-Chairman at the Bahrain Insurance Association, said: “This is a major development for the insurance market in Bahrain and will no doubt enhance the reputation of the Bahrain insurance sector, both locally and regionally”.

This qualification will be available both in English and Arabic, and is welcomed and supported by the BIA.

“The BIBF is proud to join the CBB and CII efforts and looking forward to supporting the Bahrain Insurance Industry enhancing its human resources and in meeting the international recognised standards,” said Husain Alajmi, Assistant Director andHead of Insurance Learning Centre, at the BIBF.

Mark Greenwood, Head of Middle East and North Africa at the CII, said “The CII is delighted to work with the CBB and the BIBF on this initiative.

“The CII has been working with insurance regulators and the industry throughout the region and we hope this is the first of many such initiatives. This is also the first time we have produced our qualifications in a language other than English, which will encourage further professional development in the Middle East.”

The move is expected to help investors and enhance public's perception.

Treasury Bills oversubscribed

The Central Bank of Bahrain (CBB) said this week's BD25 million (Dh74m) Treasury issues have been oversubscribed by 412 per cent.

The bills carry a maturity of 91 days.

The weighted average rate of interest is 0.79 per cent compare with 0.88 per cent, for the previous issue on 15 July 2009.

The approximate average price for the issue was 99.801 per cent with the lowest accepted price being 99.801 per cent.

Most tenants do not bother to check if their buildings are insured or not

Does the building where you live in have insurance cover to protect you and your valuables from fire or other accidents?
 
Emirates 24|7 found that most residents do not bother to check whether a building is insured or not before moving in.
 
Only when disaster strikes they are aware of the reality, as in the case of several families who lost everything in the recent Kuwait Tower fire in Sharjah.
 
Several of the high-rise residential towers in Sharjah and other Northern Emirates do not have proper insurance cover.
 
For landlords, this amounts to savings in insurance premiums that can run into tens of thousands of dirhams.
 
Speaking to Emirates 24|7, sources in insurance business said many high-rise towers in Sharjah, Ajman and other emirates are leased out without proper insurance cover.
 
This leaves tenants with potential risks, as they were the ones who bore the brunt of the fire in Kuwait Tower, a 14-storey residential building in Sharjah. Most of the tenants lost their valuables and household items in the massive fire that raged for over 12 hours.
 
Many tenants of high-rise buildings who spoke to Emirates 24|7 said they are not aware of any insurance cover for their apartments and buildings.
 
In Dubai, especially in free zones, insurance is a must for leasing buildings and offices. However, in Sharjah and other Northern Emirates, property owners and real estate companies don’t purchase insurance cover as it is not mandatory by law.
 
The value of a multi-storeyed building might run into several millions of dirhams and even an insurance premium of less than one per cent of the property value can be a high amount for the landlord.
 
“We manage several residential buildings in Sharjah and Ajman. We don’t buy insurance cover for them because it is a costly affair and landlords are reluctant to pay any insurance premium. The insurance premium could range between Dh15,000 and Dh25,000,” said the manager of a leading real estate firm in Sharjah.
 
He said prospective tenants also do not insist or check whether a building is insured or not and do not take special insurance cover for their apartments.
 
K Cherian Thomas, Senior Marketing Manager, Al Buhaira National Insurance Company which handles property insurance, said: “It is unfortunate that building owners are reluctant to insure their buildings.”
 
“Compared to the huge amount they collect as rent, the insurance premium will only be a small percentage. For example, if the value of a building is Dh20 million, the annual premium will be nominal.”
 
“There are no clauses in Sharjah or Ajman lease agreements that the building/home should be insured,” he said.
 
Thomas said there are several insurance products available in the market that cover third-party damages or physical damages, but there are few takers for them.
 
“Household items like ornaments, electronic appliances and other valuables can be insured by either the property owner or the real estate company,” Thomas said.
 
Another industry source said: “Medical insurance is now compulsory, so is vehicle insurance. But when you take a home on lease, nobody checks whether it is insured or not. I think there should be a clause in tenancy contracts that ensure that buildings are fully covered for fire and other accidents.”
 
One reason property owners do not take insurance cover for the building is because real estate value goes up with time and insurance premium goes up proportionately.
 
“If the insurance premium is based on reinstate value, the premium will be calculated on the original construction cost of the building.”

Sharjah visit 1

Dubai, August 17, 2010 – The UAE Ministry of Economy’s Consumer Protection Department fined more than 10 outlets in Sharjah’s fruits and vegetables, meat and fish markets today, during a field visit to verify compliance with preset prices and sales terms.

Dr. Hashim Al Nuaimi, Director of the Consumer Protection Department, toured the markets and directed traders to commit to the prices that were agreed with the Ministry during the holy month. The inspection team found prices of most commodities remain stable and detected no attempts to manipulate the market, Dr. Al Nuaimi said. The team took the disciplinary action against outlets that did not display price tags on their products, or violated other Ministry agreements.

Dr Hashim while touring the fish market he urged traders to exchange their old equipments for weight measurements with new and clean tools, in order to ensure weight accuracy and hygiene of products. At the meat market Dr Hashim and the inspection team fined 2 shops who didn’t commit to the consumer protection regulations and selling meat at high prices.

Dr Hashem said that prices of commodities have increased due to the demand and supply factor and some were already increased at its origin.

“The UAE Ministry of Economy is committed to supervising UAE consumer markets during Ramadan and will act quickly and decisively to ensure all outlets adhere to the federal consumer protection law,” Dr. Al Nuaimi said. “We will not show any leniency to price manipulators or monopoly traders.”

“Our specialist teams will intensify their visits to monitor sales outlets across the emirates in keeping with the Ministry’s priority to ensure consumer protection during the holy month of Ramadan,” he added.

Cooperation to facilitate value-added services for DMCC members

From left to right - Ashok Gupta of Bank of Baroda and Ahmed bin Sulayem of DMCC signing the MoC

Dubai, August 17, 2010: Dubai Multi Commodities Centre Authority (DMCC), a Free Zone Authority dedicated to enhancing trade flows through Dubai, and Bank of Baroda, India’s third largest bank signed a Memorandum of Cooperation (MoC) at a ceremony held in DMCC’s offices in Almas Tower.

The MoC was signed by DMCC Executive Chairman Ahmed Bin Sulayem and Ashok K. Gupta, Chief Executive (GCC Operations), BOB to channelize synergies and maximise business opportunities.  

The MoC is designed to provide value-added services to DMCC-registered companies and to further enhance the proposition of operating in the JLT Free Zone. Companies licensed by DMCC will have access to a wide suite of financial products and services provided by BOB, including borrowings for property purchases in the JLT, working capital and long-term financing, trade and commodity financing and other commodity related services.  DMCC and BOB will also share knowledge through seminars, workshops and exchange of faculty.

“The UAE and India share a long-standing history of trade and partnership, and we are pleased to further build upon this,” said Ahmed Bin Sulayem, Executive Chairman, DMCC. “As one of the leading Indian Banks, Bank of Baroda has been providing banking services in the UAE for over 36 years. Indian traders constitute a considerable population of the commodities traders in the UAE, and we are confident that this cooperation will provide added convenience to DMCC members, especially those with business activities in India.”

Ashok K. Gupta, Chief Executive (GCC Operations), Bank of Baroda, said “We are pleased to enter into a MoC with DMCC, one of the leading free trade zones in the UAE. We are confident that our services will greatly add value to DMCC members, and we look forward to helping DMCC members with customised solutions for all their banking and financing requirements.”

Through its six branches and four Customer Service Centres in the UAE, BOB offers full-fledged banking services, including credit facilities to all segments i.e. individuals, SMEs, corporates, traders, new industrial projects, etc. BOB has an extensive network of over 3125 branches/offices in India. Internationally, it has operations in over 26 countries with 81 offices through which it can take care of banking requests of enterprises.

The sector’s reserves reached Dh8.9 billion, while premium income was Dh20 billion, an increase of 9.3 per cent in comparison to 2008

Abu Dhabi: The UAE’s insurance sector made investments of Dh23.7 billion last year, 47.3 per cent of which were in stocks and bonds and 34.2 per cent in bank deposits.

This was revealed by the Emirates Insurance Authority’s annual report which was released yesterday by Sultan Bin Saeed Al Mansouri, Minister of Economy and Chairman of the Authority.

Al Mansouri said shareholder equity in national insurance companies reached Dh13.9 billion. The sector’s reserves reached Dh8.9 billion, while premium income was Dh20 billion, an increase of 9.3 per cent in comparison to 2008.

Al Mansouri pointed out that the establishment of an independent authority for the insurance sector reflects the importance of insurance and its role in protecting activities in the economic, trade, industrial, and construction sectors, as well as providing health care for residents.

Legislation

He added that the insurance authority has started completing the organisational legislations, where the executive panel for the insurance law was issued, and the cabinet’s decision regarding the minimum capital of insurance companies and the issuance of the board’s decision regarding money laundering, combating financing terrorism in insurance activities. The authority is also seeking to complete the bigger part of legislations during this current year.

Have you had problems with your insurance company? How did you resolve those issues? Share your experiences

When a motorist goes to renew his vehicle insurance with one of the approved companies, he can renew his car registration in the same place

Dubai: Motorists can now get their car registration renewed at selected insurance company offices, said a senior official at the Dubai Roads and Transport Authority (RTA).

“The RTA has entered into an agreement with five selected insurance companies it calls ‘Trusted Agents’ giving them the authority to renew vehicle registration for their customers,” said Ahmad Hashim Behroozian, Chief Executive Officer (CEO) of the RTA’s Licensing Agency.

This means that when a motorist goes to renew his vehicle insurance at one of the five approved insurers, he can also get his car registration renewed at the same place without visiting vehicle licensing departments or Tasjeel centres.

The motorist, however, has to get the vehicle tested and get the vehicle pass test report from Tasjeel or other authorised vehicle test centres. However, a vehicle test report is not required any more for vehicles up to three years old.

“The new service has been launched in line with the Agency’s strategic plan to introduce more online services and provide more facilities to its customers,” he told a press conference yesterday.

The five insurance companies approved by the RTA for carrying out car registration are Royal and Sun Alliance Insurance, Fujairah Insurance, Oman Insurance, AXA Insurance and Noor Takaful Insurance.

“The new service will also help reduce long queues and waiting time at the RTA’s licensing centres. The vehicle registration renewal service is the single largest transaction service done by the Licensing Agency as more than one million vehicles are registered in Dubai and their registrations have to be renewed every year,” said Behroozian.

An average of around 2,700 vehicle registrations are renewed every day. The announcement was made in a press conference held on Tuesday morning.

Traffic fines

Behroozian said insurance companies would not charge any extra for this service. Also, they will be authorised to collect traffic fines if there are any from their customers.

Every insurance company will be able to apply for registration for its own customer and not from any other insurance company, he explained.

Insurance companies representatives who were also present at the function thanked the RTA for trusting their services. They said that they would soon announce the launch of the new services at their premises.

Karl Gray, Director of personal lines at the Royal and Sun Alliance Insurance, told Gulf News that his company would launch the vehicle registration service next week.

“We will launch the service with a special offer for our customers during Ramadan as we will renew registration cards free of cost for the first 300 customers,” he added.

The normal renewal fee is Dh380.