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Location: Central Bank of Bahrain Volume 3—Insurance > Part A > High Level Standards > AU Authorisation > AU-6 Licensing and Registration Fees > AU-6.3 Annual Fees > AU-6.3.6
  • AU-6.3 Annual Fees

    • AU-6.3.1

      Insurance licenseesG or registered persons must pay to the CBB an annual licensing or registration fee, on 1st December of the preceding year for which fees are due.

      Amended: July 2013
      Added: July 2007

    • AU-6.3.2

      The relevant fees are specified in Rules AU-6.3.3 to AU-6.3.6A below: different fees are specified for insurance firmsG (other than captive insurance firmsG ), captive insurance firmsG , insurance brokersG , insurance consultantsG , insurance managersG , actuariesG , loss adjustersG and appointed representativesG . The fees due on 1st December are those due for the following calendar year. Where applicable, variable fees are calculated on the basis of the firm's latest audited financial statements for the previous calendar year: i.e. the fee payable on 1st December 2013 for the 2014 year (for example) based on a percentage, is calculated using the audited financial statements for 2012, assuming a 31st December year end.

      Amended: July 2013
      Amended: October 2009
      Added: July 2007

    • AU-6.3.3

      For insurance firmsG , other than captive insurance firmsG , the annual licensing fee is a fixed amount of BD 6,000. For captive insurance firmsG , the annual licensing fee is a fixed amount of BD 1,000.

      Amended: July 2013
      Added: July 2007

    • AU-6.3.4

      Insurance brokersG , other than Bahraini single person companies, all insurance consultantsG and all insurance managersG must pay a variable annual licensing fee, based on 0.25% of their relevant operating expensesG , subject to a minimum ('floor') of BD 500 and a maximum ('cap') of BD 3,000.

      Amended: July 2013
      Added: July 2007

    • AU-6.3.5

      For insurance brokersG that are Bahraini single person companies, the annual licensing fee is a fixed amount of BD 175.

      Amended: July 2013
      Added: July 2007

    • AU-6.3.6

      The annual registration fee for registered actuariesG is a fixed amount of BD 25. For registered loss adjustersG , unincorporated individuals must pay an annual registration fee of a fixed amount of BD 175 while incorporated loss adjustersG must pay an annual registration fee of a fixed amount of BD 1,200.

      Amended: July 2013
      Amended: October 2007
      Added: July 2007

    • AU-6.3.6A

      For appointed representativesG , the annual fee must be paid by the licensed principalG . The fee for registered appointed representativesG , that are unincorporated individuals is a fixed amount of BD 25. For incorporated appointed representativesG , the fixed annual fee is based on the number of designated individuals within the corporate entity that are the representatives of the insurance firm. For incorporated appointed representativesG that have:

      (a) 1 to 10 designated individuals, the fee is BD500;
      (b) 11 to 20 designated individuals, the fee is BD 1000; and
      (c) More than 20 designated individuals, the fee is BD1500.
      Amended: July 2013
      Adopted: October 2009

    • AU-6.3.6B

      For incorporated appointed representativesG , the fee amount is based on the number of designated individuals at the prior year end.

      Adopted: October 2009

    • AU-6.3.6C

      As an example, for purposes of Paragraph AU-6.3.6B, if at 31st December 2012 an incorporated appointed representativeG had 8 designated individuals, the fee payable on 1st December 2013 for the 2014 year would be BD 500. If during the course of the year 2013, the number of designated individuals increased to 15 by year end 2013, the fee payable for the year 2015 would be BD 1000.

      Amended: July 2013
      Adopted: October 2009

    • AU-6.3.7

      For purposes of Paragraph AU-6.3.4, relevant operating expensesG are defined as the total operating expenses of the licensee concerned, as recorded in the most recent audited financial statements available, subject to the adjustments specified in Rule AU-6.3.8.

      Added: July 2007

    • AU-6.3.8

      The adjustments to be made to relevant operating expensesG are the exclusion of the following items from total operating expenses:

      (a) Training costs;
      (b) Charitable donations;
      (c) CBB fees paid; and
      (d) Non-executive Directors'G remuneration.
      Added: July 2007

    • AU-6.3.9

      For the avoidance of doubt, operating expenses for the purposes of this Section, do not include items such as depreciation, provisions, interest expense, and dividends.

      Added: July 2007

    • AU-6.3.10

      The CBB would normally rely on the audited accounts of a licensee as representing a true and fair picture of its operating expenses. However, the CBB reserves the right to enquire about the accounting treatment of expenses, and/or policies on intra-group charging, if it believes that these are being used artificially to reduce a license fee.

      Added: July 2007

    • AU-6.3.11

      Insurance licenseesG , subject to Paragraph AU-6.3.4 must complete and submit Form ALF (Annual License Fee) to the CBB, no later than 15th October of the preceding year for which fees are due.

      Amended: July 2013
      Amended: April 2009
      Added: July 2007

    • AU-6.3.11A

      Except for actuaries and loss adjustors, all annual license fees are collected by direct debit. For licensees subject to a variable fee, the fee levied will be based on form ALF that is provided in accordance with Paragraph AU-6.3.11.

      Added: July 2013

    • AU-6.3.11B

      All licensees subject to direct debit for the payment of the annual fee, must complete and submit to the CBB a Direct Debit Authorisation Form by 15th September, available under Part B of Volume 3 (Insurance) CBB Rulebook on the CBB Website.

      Added: July 2013

    • AU-6.3.11C

      For actuaries and loss adjusters, the annual fixed fee must be remitted by direct deposit or wire transfer by 1st December of the previous year for which the fees are due. Payment instructions are outlined in Form ALF which must be completed when fees are remitted.

      Added: July 2013

    • AU-6.3.12

      For new insurance firm licenseesG , their first annual license fee is payable when their license is issued by the CBB. The annual fee due in relation to the first year in which the license has been granted, shall be prorated for the year using the date of the official licensing letter from the CBB, as the base for the prorated period. The prorated fee will result in fees charged only for the number of complete months left in the current calendar year.

      Added: July 2007
      Amended: October 2007
      Amended: April 2008
      Amended: April 2009

    • AU-6.3.12A

      For those new licensees subject to a fee based on their relevant operating expensesG (refer to Paragraph AU-6.3.4), the amount payable in relation to the first year in which the license has been granted is the floor amount of BD500.

      Added: April 2008
      Amended: October 2008
      Amended: April 2009

    • AU-6.3.13

      For newly registered actuariesG , individual loss adjustersG and appointed representativesG , the full annual amount of the annual registration fee referred to in Paragraph AU-6.3.6 and AU-6.3.6A, shall be the fee required to be paid to the CBB for the first year in which the registration status has been granted.

      Amended: October 2009
      Amended: April 2008
      Added: July 2007

    • AU-6.3.14

      For newly registered incorporated loss adjustersG , the annual registration fee referred to in Paragraph AU-6.3.6, shall be prorated for the year using the date of the official registration letter from the CBB, as the base for the prorated period. The prorated fee will result in fees charged only for the number of complete months left in the current calendar year, subject to a minimum fee of BD 250.

      Added: July 2007
      Amended: April 2008
      Amended: October 2008

    • AU-6.3.15

      [This Paragraph was deleted in July 2013]

      Deleted: July 2013
      Added: July 2007

    • AU-6.3.16

      [This Paragraph was deleted in April 2009]

      Deleted: April 2009

    • AU-6.3.17

      Where a license or registration is cancelled (whether at the initiative of the firm or the CBB), no refund is paid for any months remaining in the calendar year in question, should a fee have been paid for that year.

      Added: July 2007

    • AU-6.3.18

      Insurance licenseesG or registered persons failing to comply with this Section may be subject to financial penalties for date sensitive requirements as outlined in Section EN-5.3B or may have their license or registered status withdrawn by the CBB.

      Added: July 2013

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