An insurance bill has been introduced in Parliament that would impose fines ranging from MVR 100,000 and MVR 5 million for giving false information in insurance claims. The bill was presented by Mahibadhoo MP Ahmed Thorig on behalf of the government.
The objectives of the bill include establishing strong and secure business regulations for the insurance sector and ensuring that insurance businesses operate in accordance with these rules.
The bill prohibits anyone from intentionally providing false information, directly or indirectly, to gain an unfair advantage in an insurance claim, attempting to obtain such an advantage, or assisting others in doing so. The bill gives the central bank, the Maldives Monetary Authority, the power to impose fines of between MVR 100,000 and MVR 5 million depending on the severity of the offense.
The bill categorizes the insurance business into general insurance and long-term insurance. General insurance business includes general takaful business while long-term insurance business includes family takaful business.
According to the bill, insurance businesses in the Maldives must be licensed by the Maldives Monetary Authority.
