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  • IM-A IM-A Introduction

    • IM-A.1 IM-A.1 Purpose

      • Executive Summary

        • IM-A.1.1

          This Module summarises the key aspects of requirements applicable to insurance intermediaries and insurance managers licensed in Bahrain, which are set out in full elsewhere in the different subject Modules of Volume 3 (Insurance). This Module is intended as an introductory guide to these Regulations and Directives, for potential license applicants, insurance brokers, insurance consultants, insurance managers and other interested parties. This Module only contains guidance material; in the event of discrepancy between this Module and the rules themselves, the latter will prevail.

          Amended: January 2007
          Amended: October 2007

        • IM-A.1.2

          For the purposes of this Module, the following terms will apply:

          Insurance Broker

          As per Paragraph AU-1.4.10, the broking of insurance contracts means:

          (a) Acting as an agent for another person in relation to the buying of insurance for that other person;
          (b) Making arrangements with a view to another person, whether as principal or agent, buying insurance; or
          (c) Advising on insurance.

          Insurance Consultant

          As per Paragraph AU-1.4.16, the offering of insurance advice (insurance consultant) means advising on insurance to third parties, without also acting as agent or making arrangements with a view to another person buying insurance.

          Insurance Manager

          As per Paragraph AU-1.4.20, the provision of insurance management services means the provision of management services to, or the exercising of managerial functions on behalf of, an insurance firm. An insurance manager is appointed by an insurance firm and is licensed in Bahrain to perform, under a contract of service, any managerial functions that are performed, or authority exercised, by a person who is not a Director nor an employee of the insurance firm, acting on the express or implied authority of its Board and/or General Manager. 'Managerial functions' include, but are not limited to, the effecting of contracts of insurance and the issuing of instructions for the settlement of claims.

          Insurance Intermediary

          For purposes of this Module, the term insurance intermediary refers to insurance brokers and insurance consultants.

          Amended: January 2007
          Amended: October 2007

      • Legal Basis

        • IM-A.1.3

          This Module contains the Central Bank of Bahrain's (CBB) Directive (as amended from time to time) relating to insurance intermediaries and insurance managers and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to insurance licensees (including their approved persons).

          Amended: January 2011
          Amended: October 2007
          Adopted: January 2007

        • IM-A.1.4

          For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

          Adopted: January 2007

    • IM-A.2 IM-A.2 Module History

      • IM-A.2.1

        This Sector Guide was first issued in April 2005 by the BMA together with the rest of Volume 3 (Insurance). Any material changes that have subsequently been made to this Module are annotated with the calendar date in which the change was made. Chapter UG-3 provides further details on Rulebook maintenance and version control.

        Amended: January 2007

      • IM-A.2.2

        When the CBB replaced the BMA in September 2006, the provisions of this Module remained in force. Volume 3 was updated in January 2007 to reflect the switch to the CBB; however, new calendar quarter dates were only issued where the update necessitated changes to actual requirements.

        Amended: January 2007

      • IM-A.2.3

        A list of recent changes made to this module are detailed in the table below:

        Module Ref. Change Date Description of Changes
        IM-1.2 01/07/05 Corrected that only insurance consultants and insurance managers are exempt from statutory deposits.
        IM-2.5 01/07/05 Corrected that insurance brokers are subject to statutory deposits.
        IM-3.4 01/07/05 Clarified scope of application of Decree Law No. 4.
        IM-2.1 01/10/05 Added the option for insurance manager to operate as a branch resident in Bahrain of a company incorporated in another jurisdiction.
        IM-3.4 01/10/05 Updated cross-references to Module FC.
        IM-A.1.3 01/2007 Updated to reflect new CBB Law and new Rule IM-A.1.3 introduced categorising this Module as a Directive.
        IM-2.3.3 10/2007 Amended the minimum number of Directors required to three as per amendment to Module HC.
        IM-2.1.7 and 2.1.8 04/2010 Amended legal status of insurance broker and insurance consultant to be in line with amendments made to Module AU.
        IM-A.1.3 01/2011 Clarified legal basis
        IM-1.2.1 and IM-2.3 04/2011 Amended to reflect changes to Module HC.
        IM-1.2.1 04/2012 Added summary of newly released Module CL (Client Money).
        IM-2.5.7 04/2012 Updated requirements for report on close links.
        IM-3.1.2 04/2012 Updated capital requirements for insurance brokers.
        IM-3.2.6 04/2012 Added requirement to have customer complaints handling procedures.
        IM-3.2A 04/2012 Added Section to deal with newly released Module CL (Client Money).
        IM-4.1 04/2012 Deleted reference to IMR and added new reference to Insurance broker return (Form IBR). Also added new requirement for agreed upon procedures related to compliance with Module CL.

      • IM-A.2.4

        Guidance on the implementation and transition to Volume 3 (Insurance) is given in Module ES (Executive Summary).

        Amended: January 2007