“The OIC board has approved the decision and we have written to the Central Bank of the UAE that our Dubai office will be placed under run off operations with effective from midnight of 7th August. We will honour all our liabilities and commitments to all our customers and other stakeholders arising out of our policies issued before the cut off date till their natural expiry. We have also sought a meeting with CBUAE for discussing the way forward.’’ said Sanjay Joshi, CMD, OIC

New Delhi: State owned Oriental Insurance Company (OIC) has decided to place its Dubai operations under run off, after the local financial regulator the Central Bank of the UAE (CBUAE) suspended the insurer’s motor insurance business as it did not immediately meet the demands of CBUAE and asked for more time to do so.

In 2024, OIC had a total business of Rs 296 crore in Dubai.

In insurance business, run off means the company(OIC) will continue to service the liabilities of existing and old policies till they are valid but can’t undertake new business.

“The OIC board has approved the decision and we have written to CBUAE that our Dubai office will be placed under run off operations with effect from midnight of 7th August. We will honour all our liabilities and commitments to all our customers and other stakeholders arising out of our policies issued before the cut off date till their natural expiry. We have also sought a meeting with CBUAE for discussing the way forward.’’ said Sanjay Joshi, CMD, OIC.

The CBUAE’s action followed as there was a delay on the part of OIC in complying with guarantee obligations as required by UAE  insurance regulations.

OIC needed to infuse statutory bank guarantee amount of AED 100 million for which the insurer sought time from CBUAE to get its board and regulatory approvals but the regulator went ahead to bar the company from issuing any fresh or renewal policies in Motor business, said industry sources.

Earlier, state owned insurer GIC Re had also placed its Dubai operations under run off and had shifted the operations to the GIFT-IFSC, India’s sole international financial centre.

In recent times, New India Assurance had also placed its operations in Hong Kong and Philippines under run off and currently is present in 25 countries including Dubai.

OIC had began operations in Dubai in 1960, during the era of the Trucial States, becoming one of the first insurers in the region, well before the UAE’s formation in 1971.

Over six decades, OIC Dubai served as a trusted partner to generations of individuals and businesses, playing a foundational role in shaping the insurance landscape of the Gulf, said industry sources.

Currently, OIC has operations in Kuwait also.