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Location: Central Bank of Bahrain Volume 5—Specialised Licensees > Specific Modules (By Type of Licensee) > Type 1: Money Changers Licensees > Part A > High Level Standards > GR Money Changers General Requirements Module > GR-7 Insurance Coverage
  • GR-7 Insurance Coverage

    • GR-7.1 Insurance Coverage Requirements

      • GR-7.1.1

        LicenseesG are required to maintain the following insurance coverage at all times:

        (a)Money in transit insurance;
        (b)Fire, theft and other perils; and
        October 2010

      • GR-7.1.2

        A licenseeG is encouraged to assess its insurance needs, through professional advice, to ensure its adequacy to the level of business undertaken.

        Amended: January 2011
        October 2010

      • GR-7.1.3

        The insurance coverage must be obtained from an insurance firm acceptable to the CBB and licensed in the Kingdom of Bahrain.

        October 2010

      • GR-7.1.4

        LicenseesG must submit an Insurance Coverage Return (Form ICR) on an annual basis, within 3 months of the end of the financial year. Additionally, they must provide, upon request, evidence to the CBB of the coverage in force.

        Amended: October 2014
        October 2010

      • GR-7.1.5

        In accordance with Paragraph EN-B.3.1, licenseesG may not enter into or make a claim under a contract of insurance that is intended to, or has the effect of, indemnifying them from the financial penalties provided for in Module EN.

        October 2010

      • GR-7.1.6

        The requirement to maintain insurance coverage will normally be met by the licenseeG concerned obtaining an insurance policy from an insurance firm. The CBB may also accept an insurance policy issued at group level, e.g. issued with respect to the parent of the licenseeG , provided the terms of the policy explicitly provide coverage with respect to the licenseeG .

        October 2010

      • GR-7.1.7

        Unless otherwise agreed in writing with the CBB, the policy must contain a clause that it may not be cancelled or lapsed without the prior approval of the CBB. The policy must also contain a provision for an automatic extended reporting period in the event that the policy is cancelled or lapsed, such that claims relating to the period during which the policy was in force may subsequently still be reported.

        October 2010

      • GR-7.1.8

        As provided for in Module ES, insurance coverage requirements must be met by licenseesG which were licensed prior to the introduction of Volume 5 (Specialised LicenseesG ) in October 2010, by June 2011. LicenseesG licensed after October 2010 are required to comply with the CBB's professional indemnity coverage requirements, from the point they are given a license.

        October 2010

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