The People’s Majlis has passed an Insurance Bill that includes heavy fines.

The bill was passed at Monday’s parliament sitting with the votes of 67 lawmakers.

According to the bill, operating an insurance business without a license can result in fines of up to MVR five million.

Once the bill is ratified, it will establish guidelines for insurance service providers and monitor whether businesses are operating in accordance with these guidelines. The Maldives Monetary Authority (MMA) will be responsible for implementing and enforcing the Insurance Act, as well as regulating and supervising insurance businesses and intermediaries.

When the bill comes into effect, those conducting insurance business without a license can be fined between MVR 100,000 and MVR five million. In addition to this, if someone provides false information to obtain undue benefits, they can be fined between MVR 100,000 and MVR five million, depending on the severity of the offense.

The bill's sponsor, MP for Mahibadhoo constituency Thoriq Ibrahim, noted that the purpose of introducing the bill is to maintain standards in the insurance sector. Further, the bill aims to ensure that insurance services are provided in line with public needs. It also intends to transform the insurance sector into an area that facilitates economic growth in the Maldives.