Popular Mobilisation Forces militia surround the Green Zone in Iraq's capital Baghdad in a show of strength following the arrest of one of their commanders. AP
Popular Mobilisation Forces militia surround the Green Zone in Iraq's capital Baghdad in a show of strength following the arrest of one of their commanders. AP
Popular Mobilisation Forces militia surround the Green Zone in Iraq's capital Baghdad in a show of strength following the arrest of one of their commanders. AP
Popular Mobilisation Forces militia surround the Green Zone in Iraq's capital Baghdad in a show of strength following the arrest of one of their commanders. AP

Iraq says militia show of strength 'cannot frighten us', following arrest of leader


Mina Aldroubi
  • English
  • Arabic

Iraqi armed militias that operate outside of state control "cannot frighten the government", Defence Minister Juma Anad said on Sunday.

This came after tensions flared in the capital Baghdad, following the arrest of a militia leader.

Mr Anad denied reports that a commander of the Popular Mobilisation Forces, Qassem Musleh, was released from custody last Wednesday, despite being investigated over terrorism and the assassination of activists.

"Armed militias act unilaterally, they cannot frighten an army or state," Mr Anad told local media.

But he said the government also had to be pragmatic.

"[Prime Minister Mustafa Al Kadhimi] always stresses the need for containment and not bloodshed.

"Some may see this as fear, however, we have put the country's interests first, which is to avoid dangerous escalations," Mr Anad said.

If the state proceeds with force, then “the issue becomes dangerous in the event of a fight between the two sides”, he said.

Mr Musleh is the head of PMF operations in Anbar. After his arrest militias backed by Iran put on a show of force in and around Baghdad's heavily guarded Green Zone.

Reining in Iranian-backed militias that operate outside of the state's control has been a key promise of Mr Al Kadhimi's government since he took office last May.

He vowed to bring justice for those kidnapped and killed during the start of the anti-government movement in late 2019.

Mr Al Kadhimi has yet to deliver on that promise.

The PMF is a state-sanctioned group made up of militias formed to help Iraq’s army defeat ISIS in 2014.

Among the most powerful members of the group are Iran-backed Shiite militias.

“We do not want a repeat of what happened last week. It is shameful for a fight to take place within the security system,” Mr Anad said.

Militia fighters responded to the arrest by taking over one of the main entrances to the Green Zone, the home of foreign embassies – such as the US and UK – and Iraqi government buildings.

Iraqi security forces and the elite Counter Terrorism Service were deployed to protect the diplomatic missions and government buildings in the area.

Mr Anad said there are political parties that are seeking to cause chaos in the country and want to create a “civil war”, without naming those groups.

Mr Anad denied that Mr Musleh had been released, and said he is still under investigation.

Last June, the same unit that detained Mr Musleh arrested 14 members of the Iran-backed PMF group Kataib Hezbollah.

After the militia threatened a stand-off, the central government relented, releasing the militiamen within days.

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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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Term life insurance: this is the cheapest and most-popular form of life cover. You pay a regular monthly premium for a pre-agreed period, typically anything between five and 25 years, or possibly longer. If you die within that time, the policy will pay a cash lump sum, which is typically tax-free even outside the UAE. If you die after the policy ends, you do not get anything in return. There is no cash-in value at any time. Once you stop paying premiums, cover stops.

Whole-of-life insurance: as its name suggests, this type of life cover is designed to run for the rest of your life. You pay regular monthly premiums and in return, get a guaranteed cash lump sum whenever you die. As a result, premiums are typically much higher than one term life insurance, although they do not usually increase with age. In some cases, you have to keep up premiums for as long as you live, although there may be a cut-off period, say, at age 80 but it can go as high as 95. There are penalties if you don’t last the course and you may get a lot less than you paid in.

Critical illness cover: this pays a cash lump sum if you suffer from a serious illness such as cancer, heart disease or stroke. Some policies cover as many as 50 different illnesses, although cancer triggers by far the most claims. The payout is designed to cover major financial responsibilities such as a mortgage or children’s education fees if you fall ill and are unable to work. It is cost effective to combine it with life insurance, with the policy paying out once if you either die or suffer a serious illness.

Income protection: this pays a replacement income if you fall ill and are unable to continue working. On the best policies, this will continue either until you recover, or reach retirement age. Unlike critical illness cover, policies will typically pay out for stress and musculoskeletal problems such as back trouble.

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