Iraq: Insurance regulation law no. 10 of 2005

Modher Majeed - Senior Associate - Corporate Structuring

1. Iraqi public companies;
2. Iraqi joint stock and joint venture companies; and
3. Foreign insurance companies or subsidiaries registered in Iraq.

Issuance of a license to conduct insurance services

According to the law, granting a license to conduct insurance services requires the following:

1. A copy of the insurer’s Memorandum of Association and its rules of procedure;
2. Type of insurance

a. Life insurance – this includes all the insurance which involves human life (or the danger related to human life), temporary insurance as well as postponed insurance;
b. Personal injury insurance – this includes the payment of fixed amounts on a regular basis to ensure the insured is covered due an external accident occurs causing the death or disability of the aforementioned; and
c. Health insurance – this includes providing specific benefits due to the disability of the insured caused by retaining a particular disease.  Further, the Law provides that this shall include the expenses of operations needed because of retaining this disease.

3. Branches of insurance

There are several branches of insurance available for the use of the public.  These include the following:
a. Maritime and aviation insurance (maritime and aviation transports both locally and internationally).  This includes the mode of transportation as well as money and goods transported, such as the transportation fees as well as ship and plane bodies;
b. Insurance against fires;
c. Car insurance;
d. Engineering insurance – this includes damage to civil engineering projects during implementation, as well as any damages incurred by the machinery and equipment.
e. Agricultural insurance;
f. Insurance against accidents – this includes the insurance of any accidents not mentioned in the insurance against theft, insurance against fires and any other types of insurancee.

It is required that the applying branch of the foreign company should not apply to perform a type of insurance different to that exercised by the parent company; and

4. Estimated amount of capital paid.

Conclusion

There is room for expansion in the insurance industry in Iraq and within the framework and guidelines provided for by the aforementioned Law.