UN Security Council condemns 'terrorist' attacks on UAE by Yemen's Houthis


James Reinl
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The UN Security Council on Friday unanimously condemned this week’s strikes on Abu Dhabi by Yemen's armed Houthi rebel group as “heinous terrorist attacks” and called for the perpetrators to face justice.

The Houthi rebels attacked the UAE on Monday, launching causing explosions in fuel lorries and starting a blaze near Abu Dhabi International Airport.

The council “condemned in the strongest terms the heinous terrorist attacks in Abu Dhabi” that left three civilians dead and injured six, it said in an agreed statement.

The UN’s top body “underlined the need to hold perpetrators, organisers, financiers and sponsors of these reprehensible acts of terrorism accountable and bring them to justice”, the statement added.

All governments were obliged to “co-operate actively” with the UAE government and “all other relevant authorities in this regard”, the statement read.

The council added that “any acts of terrorism are criminal and unjustifiable, regardless of their motivation, wherever, whenever and by whomsoever committed”, warning of the threat “to international peace and security caused by terrorist acts”.

Council members met behind closed doors to discuss the attack in Abu Dhabi, the UAE's coastal capital of about 1.5 million people.

The UAE’s ambassador to the UN Lana Nusseibeh entered the chamber shortly after 10am local time accompanied by a military official.

They were expected to provide the 15-nation body with details of the aerial strikes.

Mona Juul, the UN ambassador for Norway, which holds the council’s rotating presidency for the month of January, said she was “very much concerned” by events in the Gulf and called for de-escalation.

The attacks occurred after an intensification in the war in Yemen, where the Iran-backed Houthis have suffered recent losses in their fight against pro-government forces and a Saudi Arabia-led coalition.

Yemen has been mired in violence since the Houthis ousted the internationally recognised government from the capital Sanaa in late 2014.

A Saudi-led coalition intervened the following year to restore the government. The war has spawned what the UN has described as the world's largest humanitarian crisis.

The UAE joined the UN’s top body for a two-year term beginning on January 1, meaning it can take part in meetings, vote on resolutions and help draft official statements.

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Key changes

Commission caps

For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:

• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term). 

• On the protection component, there is a cap  of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).

• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated. 

• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.

• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.

Disclosure

Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.

“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”

Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.

Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.

“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.

Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.

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