Analysis of Insurance laws in India and UAE

By:- Khushi Sharma


Banking can be described as the activities such as depositing and protecting the capital of people and several business organizations and ultimately returning the money as per the wants of the depositors. The term insurance means the process in which the insurer agrees to make good the loss of the insured. There are several types of insurance like life insurance, health insurance etc. For the smooth functioning of banks and financial institutions there are various rules and regulations formed by the legislature. These rules regulate the working of banks and other financial institutions. The banks like any other entity are under the obligation to follow various central and state regulations. The banks majorly deals with the different transactions that takes place on daily basis whereas the financial institutions majorly deals in serving customers to build their businesses. The banking laws are formulated with a view to regulate the lawful fulfillment of the duties allotted to the banks. The insurance laws on the other hand deals with the formation and execution of the Insurance contracts made between the parties.

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The banking system plays a very important role in maintaining the economy and financial strength of a country. In the time, where the world is dynamic in nature, the developing countries wants to become developed and already developed ones are eager to rise higher. It is important to note that for the overall growth of any country, a properly functioning banking system is a major requirement. The banking system becomes a pillar in the development of the nation and its economical position. Nonetheless, banks also play a role of financial supporter of the people of the country.

Insurance can be aptly defined as an armor to decrease or completely eliminate the risk attached to one’s life and property. Under the agreement of insurance, the insurer promises the insured to make up for the loss faced by the insured in exchange of an alleged premium fee. The risk against which a person can be insured includes the risk of death,fire,theft,damage etc. Any person can be protected against these risks on the payment of a premium proportionate with the risk involved. Insurance laws are those statutes which deals in policies and claims of insurance.

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Banking Laws in India:

In India, the laws for the administration and functioning of banks were formulated in the year 1949, two years after Independence. They enacted on 16th March,1949 and changed the whole banking system. Due to globalization and development of the businesses and trade, the banking institutions in India were becoming the main focus of the time.

In the British era, the most earlier improvement in the system took place with the foundation of Calcutta bank in 1806 followed by the Mumbai bank in 1867. Emperor bank came into existence in 1920, as a result of which the three banks were united with the position of President of Calcutta, Madison and Massa by the laws of the Bank of India.

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Insurance Laws in India:

In 1912, the very first statute to regulate the life insurance business came into being and was termed as the Indian Life Assurance Companies Act,1912. Then an act of wider scope formed which enacted for all types of insurance and to formulate strict rules for the insurance business.This was called the Insurance Act of 1938. Due to the Life Insurance Corporation Act,all the 245 insurance agencies working in India were converted into one entity in 1956 and called the Life Insurance Corporation of India. In the year 1972 every insurance company was merged into National Insurance, New India Assurance, Oriental Insurance and United India Insurance which had there headquaters in the metropolitan areas. Till the year 1999, no private insurance agency was left in India. The legislature formulated the Insurance Regulatory and Development Authority Act in 1999 which ultimately permitted the private businesses to carry on the insurance business. Further, the foreign investment was also permitted. The constraint to the FDI in the insurance sector was raised to 49% in the year 2015, subject to some conditions.

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Insurance Laws in UAE:

  • The nature of UAE in insurance market

In the Gulf Cooperation Council (GCC), the United Arab Emirates insurance market is the largest. In UAE there are three jurisdictions for insurance; namely the Onshore UAE market, the Abu Dhabi Global Market(ADGM) and the Dubai International Financial Centre(DIFC). In recent years, the Islamic insurance market is also growing within the UAE. The alternative system for cooperative islamic insurance is the Takaful Insurance that is also found there.

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  • The Insurance Regulator

The insurance market of UAE is regulated by the Insurance Authority(IA) which regulates the onshore insurance business. The IA was established in 2007 and the scope of its governance includes insurance and reinsurance companies, entities and intermediaries located in UAE. The UAE cabinet, recently passed an order in October,2020 for the IA to merge with the UAE Central bank. In January 2021, the Central Bank announced that it will take up the regulatory and supervisory responsibility of the insurance sector. Thus we can expect further changes and developments in the insurance sector of UAE in coming years.

Some important provisions of the Insurance law of UAE are worth mentioning-

  • Article 7 of the Insurance law talks about the responsibilities of the Insurance Authority.
  • Article 8 provides for the constitution of Insurance Authority and that it must include one board, director general and executive body.
  • Article 24 states the various forms of companies that are entitled to carry out insurance and reinsurance activities in the UAE.
  • Article 26 of the act talks about the limitations of the insurance companies. It protects the UAE properties from being insured outside the country.

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In the era of development and globalization, banking and insurance is the basic need of every country around the world for carrying on its activities globally and develop with the competitor countries. As globalization is increasing with an increase in the technology across the globe, the frauds that are taking place has also raised in number especially those dealing with the banking and insurance industry. All people should deal carefully to avoid risks and get insured for any unforeseen event. Insurance can be aptly defined as an armor to decrease or completely eliminate the risk attached to one’s life and property. Also one must be aware of the laws governing the insurance and its policies before getting one from the provider in order to get the maximum benefit of it. Insurance and banking sectors have come a long way in India and provides ample services at convinient fee which is accessible by the middle class people of the nation. The comparison of Indian and UAE insurance laws shows that both countries have their own way of functioning but the aim is common of both the countries. Insurance sector has come a long way and it still has a long way to go in future.


Tortious Liability of Companies in India and USA

By: Prashant Pathak


“A tort is a common wrong for which the cure is an activity for unliquidated harms and which isn’t solely the penetrate of an agreement, or the break of a trust, or the penetrate of other only impartial commitment”- Salmond

The term ‘tort’ was brought into the phrasing of English Law by the French talking legal counselors and Judges of the Courts of Normandy and Angevin Kings of England. As a specialized term of English law, misdeed has gained an exceptional importance as a types of common injury or wrong. Till about the center of the seventeenth Century misdeed was a dark term, when method was viewed as more significant than the privilege of a person. This accentuation on procedural perspective for deciding the accomplishment for a case proceeded for exactly 500 years, till 1852, when the Common Law Procedure Act was passed and supremacy of substance over the technique progressively picked up firmer ground. Today the adage as it stands seems to be ‘ubi jus ubi remedium’, for example where there is not too far off is cure.

Tort is what might be compared to the English word ‘wrong’ and of the Roman law term ‘delict’. The word misdeed is gotten from the Latin word ‘tortum’ which means contorted or abnormal or wrong and is as opposed to the word rectum which implies straight. It is required out of everybody to act in a clear way and when one goes astray from this straight way into screwy ways he is said to have submitted a misdeed. Thus misdeed is a lead which is wound or slanted and not straight. In spite of the fact that numerous conspicuous essayists have attempted to characterize Tort, it is hard to do as such for shifted reasons. The vital explanation among this being, that the law of Torts depends on chose cases. Judges while choosing a case, feel their essential obligation is to decree the situation close by as opposed to set down more extensive guidelines and consequently they only from time to time set out any meaning of a lawful term. Besides the law of misdeed is as yet developing. On the off chance that a thing is developing no acceptable definition can be given.

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It is relevant to comprehend what is implied by tortious obligation or rather the idea of misdeed law to comprehend its utility. To toss all the more light, the word misdeed developed, from at one time very nearly passing into abstract use as an equivalent for wrong yet after the center of the seventeenth century, a training started in the courts of the customary law, of recognizing activities in ‘contract’ for breaks of agreement and activities for different wrongs, and of utilizing the word ‘misdeed’ as a succinct title for the last class of activities. From that point forward it was regular to discuss ‘activities in agreement’ and ‘activity in tort'[1]. So a misdeed came, in law to allude to that specific class of wrongs for which an activity in misdeed was perceived by the courts of customary law as a cure and to lose the nonexclusive feeling of wrong which it might have helped in well known use.

Another fascinating consequence of this relationship of the word with a type of activity was that it came to allude likewise to the obligation of an individual who didn’t submit any misdeed or wrong, for example an expert who is sued for the harms by the individual harmed by a misdeed submitted by his servant[2]. This was on the grounds that an ‘activity in misdeed’ was the cure against the expert and in course of time and because of new requirements and conditions, the expert was held subject to pay harms despite the fact that he had not submitted any misdeed. So the law of misdeeds is that assortment of law which manages the risk of people against whom an ‘activity in misdeed’ would lie.

tort as we probably am aware today has developed throughout the long term and has filled immensely in nations, for example, the England, United States of America, and other reformist nations and partly in India. The primary investigation in this article anyway would spin around two parts of this part of law, initially, regardless of whether the law of misdeed in India is pointless and besides, whether the law of misdeeds has been basically disregarded. Prior to proceeding onward to the center subject it is basic to completely comprehend the significance of the term misdeed in the Indian setting.


In India the term tort has been in presence since pre-freedom time. The Sanskrit word Jimha, which means warped was utilized in antiquated Hindu law text in the feeling of ‘tortious of fake conduct’.[3] However, under the Hindu law and the Muslim law, misdeed had a much smaller origination than the misdeed of the English law. The discipline of violations in these frameworks involved a more noticeable spot than pay for wrongs. The law of misdeeds in India as of now, is mostly the English law of misdeeds which itself depends on the standards of the custom-based law of England. Anyway the Indian courts prior to applying any standard of English law can see whether it is fit to the Indian culture and conditions. The utilization of the English law in India has consequently been a particular application.

“We need to develop new standards and set down new standards which will enough arrangement with new issues which emerge in a profoundly industrialized economy. We can’t permit our legal deduction to be built by reference to the law as it wins in England or for the matter of that in any far off nation. We are absolutely set up to get light from whatever source it comes yet we need to construct our own law.”

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During British standard, courts in India were charged by Acts of Parliament in the UK and by Indian institutions to act as per equity, value and great still, small voice if there was no particular principle of authorized law relevant to the contest in a suit. As to suits for harms for misdeeds, courts adhered to the English customary law to the extent that it was consonant with equity, value and great still, small voice. They left from it when any of its standards seemed nonsensical and unsatisfactory to Indian conditions. An English resolution managing misdeed law isn’t by its own power pertinent to India however might be followed here except if it isn’t acknowledged for the explanation just referenced.


The law of torts in India depends on the standards of the English Common Law. Be that as it may, it has been adjusted to meet the nearby necessities. A portion of the significant standards of misdeeds incorporate carelessness, disturbance, trespass, vicarious obligation, severe and supreme risk. In setting of the current article, we will center upon the ideas of exacting and total obligation versus the two outstanding modern fiascos in India.

  1. a) Doctrine of Strict Liability

The regulation of “severe risk” advanced in Fletcher v. Rylands. For this situation, Rylands employed temporary workers to assemble a supply on his territory. While building it, the contractual workers found a few imperfections and left them unfixed. After some time, Rylands’ repository burst and overflowed Fletcher’s bordering mine causing £937 worth of harm. Blackburn, J. believed that any individual who for his own motivations welcomes on his property and gathers and keeps there anything liable to do underhandedness, in the event that it gets away from should keep it at his hazard and in the event that he doesn’t do as such, is at first sight responsible for all the harm which is the regular outcome of its escape.

  1. b) Doctrine of Absolute Liability

The guideline of “outright risk” was first historically speaking applied by the Supreme Court of India in M.C. Mehta v. Association of India (popularly known as Oleum gas spill case). For this situation, oleum gas spilled from a manure plant of Shriram Foods and Fertilizers, Delhi and made harm a few people. A forthcoming public interest suit (PIL) by M.C. Mehta gave the occasion to the Court to pass a progression of requests managing the eventual outcomes of gas spill. For this situation, the Court objected the utilization of the standard of severe risk

  1. Bhopal Gas Tragedy

Association Carbide India Limited’s (UCIL) plant at Bhopal was planned by its holding organization Union Carbide Corporation (UCC), USA and was inherent 1969 for making pesticides, created by responding Methyl Isocyanate and Alpha Naphthol. An occurrence of gas spill occurred in the Bhopal pesticide plant of UCIL the evening of 2-3 December, 1984 making extreme misfortune the lives of individuals in the region. Individuals were presented to this gas all around the city and the quick impacts were hacking, retching, serious eye disturbance and a sensation of suffocation. A huge number of individuals passed on quickly, and lakhs of individuals continued perpetual wounds.

Then, the Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985was passed by Parliament to give certain forces on the Central Government to make sure about that cases emerging out of, or associated with, the Bhopal gas spill fiasco, are managed expediently, successfully, impartially and to the best bit of leeway of the petitioners and for issues coincidental thereto. This Act made the Union Government illustrative of the casualties of the misfortune and permitted them to record suits for their sake. Alongside this, an out of court settlement between the Government of India and Union Carbide was shown up at, which fixed the risk of the organization to pay $470 million according without limit and last settlement, everything being equal, rights and liabilities emerging out of that fiasco. With everything taken into account, it was a terrible move, as the settlement restricted the liabilities for the cases which were recorded later. It is a hard certainty, however it is as clear as open air that $470 million dollars were not adequate to remunerate all the harmed. Truth be told, it is not really 15% of the first case of $3.3 billion.

The pay granted was around Rs. 1 lakh for the groups of the individuals who lost their lives, Rs. 50,000 for forever harmed and Rs. 25,000 for briefly harmed.

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The idea of element obligation permits an enterprise to be held at risk for the criminal wrongdoings of its representatives if (1) the specialist is acting inside the real or evident extent of their business or authority and (2) if the specialists mean, in any event to some degree, to some way profit the organization through their activities. The organization can at present be held at risk for their representatives’ criminal offenses or activities regardless of whether the specialists’ activities are in opposition to corporate strategy or straightforwardly dismiss express requests of the enterprise. This standard was set up in New York Central and Hudson River Railroad v. US, 212 U.S. 481 (1909), where the court chose to expand the misdeed precept of respondeat better than criminal cases, setting up a type of corporate criminal obligation for activities of company’s representatives.


In Ogoniland, Nigeria, ecologically concerned protestors were beaten, assaulted, and murdered for shows contradicting forceful oil advancement in the Ogoni Niger River Delta. Nigerian nationals brought suit under the Alien Tort Statute (ATS) in the Southern District of New York, asserting that unfamiliar enterprises that work together in the United States helped and abetted these atrocities. In Kiobel v. Illustrious Dutch Petroleum Co., the Supreme Court held that unfamiliar organizations are not dependent upon obligation in the United States for tortious acts outside of the United States. Be that as it may, on the grounds that Kiobel managed an unfamiliar enterprise, the assessment left open whether or not a United States organization could be at risk for tortious acts outside of the nation, and the open inquiry brought about a circuit split. The Fourth Circuit has held that American partnerships can be sued for acts submitted outside of the United States, while the Eleventh Circuit has extended Kiobel and expressed that American courts need ward over these cases, hence excepting them in that circuit. The Fourth Circuit’s thinking is a superior examination of cases brought under the Alien Tort Statute (ATS) on the grounds that the resolution was proposed to give a solution for outsiders harmed by Americans. Thusly, the United States has a commitment to give a gathering to noncitizens to get pay for misdeeds submitted by Americans in different nations. Moreover, the ATS was made to manage an American resident’s lead outside of the United States. Without a court authorizing this commitment, companies have minimal solid motivation to screen workers’ potential tortious exercises abroad.

Kiobel v. Illustrious Dutch Petroleum Co.

 In Kiobel, Nigerian residents claimed that the Royal Dutch Petroleum Company and Shell Transport and Trading Company helped and abetted the Nigerian government in viciously stifling fights against forceful oil advancement in Nigeria. The offended parties looked to recuperate in United States court under the ATS for the savage, tortious acts submitted in Nigeria. The ATS gives that “the region courts will have unique purview of any considerate activity by an outsider for a misdeed just, dedicated disregarding the law of countries or a deal of the United States.” The offended parties asserted that the organizations abused Nigerian law. On allure, the Supreme Court confronted the issue of whether an ATS case could gives harms to activities by non-American enterprises a working in an unfamiliar area. The Court depended on a legal standard known as the “assumption against extraterritorial application” to discover that the ATS doesn’t cover these claims. The Court held that the assumption against extraterritorial application applies to claims under ATS, yet that nothing in the resolution counters that assumption, so the ATS didn’t matter to the cases in Kiobel. Further, all pertinent lead in Kiobel occurred outside of the U.S.However, the Court expressed that if claims “concern the domain of the United States,”they can refute the assumption against extraterritorial application, yet should have adequate power to do so. Thus, this holding left open whether or not government courts have position to hear claims with respect to tortious acts submitted outside the United States yet that “contact and concern” the United States by prudence of their American tortfeasors.

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