Insurance laws Dominica
Insurance law in the Commonwealth of Dominica is primarily governed by the Insurance Act [No. 6 of 1995], which has been amended over the years. This legislation sets the framework for the regulation and operation of both domestic and offshore insurance businesses in the country.
Key aspects of insurance law in Dominica include:
Regulatory Authority: The Financial Services Unit (FSU) of the Ministry of Finance is the main regulatory body for the insurance sector. The FSU is responsible for the supervision, licensing, and regulation of all insurance companies and intermediaries to ensure compliance with the Insurance Act and to protect the interests of policyholders.
Licensing and Registration: Insurance companies and intermediaries must be licensed and registered with the FSU to operate in Dominica. The law outlines specific requirements for registration, including capital adequacy and other conditions. Foreign companies also have obligations they must meet to operate in the country.
Compulsory Insurance: Certain types of insurance are mandatory in Dominica, with motor third-party liability insurance being a key example. This ensures that victims of road accidents are covered.
Offshore Insurance: Dominica has a separate legal framework for offshore insurance, which is regulated by the Exempt Insurance Act of 1997. This legislation is designed to attract international insurance businesses, particularly in the captive insurance and reinsurance sectors, by offering a favorable regulatory and tax environment. These companies primarily deal with risks and premiums that originate outside of Dominica.
Consumer Protection: The Insurance Act includes provisions to protect policyholders, such as requirements for companies to keep accurate records, maintain separate accounts for insurance funds, and to ensure solvency.
Legal Framework: Dominica's insurance legislation covers a wide range of topics, including the establishment and management of insurance companies, accounting requirements, rules on solvency, and procedures for judicial management and winding-up. It also addresses specific provisions for different types of insurance, such as life and group life policies.
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