Evaluating Your Insurance Claim and Recovering Rights in UAE Courts

If you wish to file a lawsuit against an insurance company in the UAE, you must first notify the insured in writing and submit the required documents within the three-year limitation period specified in Federal Decree-Law No. 48 of 2023 (Insurance Activities); and if payment is refused, a claim is filed before the competent civil court or the DIFC/ADGM courts in accordance with the insurance policy.

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WHAT STEPS MUST I TAKE BEFORE FILING A LAWSUIT AGAINST AN INSURER?

You must first send a formal demand letter to the insurer outlining the basis of your claim, the amount sought, and a reasonable deadline for response, typically fifteen days. The letter should reference the policy number, the date of loss, and any supporting evidence such as loss reports, invoices, and expert assessments. Under Federal Decree-Law No. 48 of 2023, Article 22, the insurer is obliged to acknowledge receipt and provide a substantive reply within the stipulated time; failure to do so may be treated as a denial of liability. You must retain copies of all correspondence and obtain proof of delivery, for example through a registered courier or notarised receipt, as these documents will be required when you commence court proceedings.

WHAT DOCUMENTS ARE REQUIRED TO SUPPORT MY INSURANCE CLAIM?

You need to provide the original insurance policy or a certified copy, a detailed loss report prepared by a licensed loss adjuster, photographs or video evidence of the damage, medical reports if personal injury is involved, repair estimates or invoices from authorised service providers, and any police or civil defence reports relevant to the incident. For commercial policies, you must also submit financial statements showing the insured's turnover or assets, as required by the underwriting guidelines of the Central Bank of the UAE. The Insurance Activities law obliges the insurer to assess the claim based on these documents; missing items may lead to a request for further information, which you should supply promptly to avoid delays.

HOW LONG DO I HAVE TO BRING A CLAIM AGAINST AN INSURANCE COMPANY?

The limitation period for insurance claims is three years from the date the cause of action arose, as prescribed by Federal Decree-Law No. 48 of 2023, Article 27. This period starts when the insured knows, or ought to have known, of the loss and the insurer's liability. If the claim relates to a latent defect, the period may commence from the date the defect is discovered. Courts strictly enforce this deadline; filing after the three-year window generally results in the claim being dismissed as time-barred, unless a legal ground for interruption or suspension applies, such as a written acknowledgment of liability by the insurer.

WHICH COURT HAS JURISDICTION OVER MY INSURANCE DISPUTE?

Jurisdiction depends on the choice-of-law clause in the insurance contract. If the policy specifies that UAE federal law governs, the claim must be filed before the civil courts of the emirate where the insurer's head office is located or where the loss occurred. If the contract selects the DIFC or ADGM as the governing law, the claim falls within the jurisdiction of the DIFC Courts or the ADGM Courts, respectively, and must comply with their procedural rules. The Insurance Activities law does not alter jurisdictional rules; it merely defines the substantive rights and obligations of the parties.

WHAT COSTS AND FEES SHOULD I EXPECT WHEN PURSUING AN INSURANCE CLAIM?

You will incur court filing fees, which are calculated as a percentage of the claimed amount, typically ranging from three percent to six percent, subject to a minimum and maximum cap set by the relevant judicial authority. Advocate fees are not regulated by statute; they are usually agreed upon as a fixed sum, an hourly rate, or a contingency fee, though contingency arrangements are restricted under UAE law for certain types of claims. Additional expenses may include expert witness fees, translation costs for Arabic documents, and costs for obtaining certified copies of public records. The law does not prescribe a fixed schedule for these disbursements, so you should request a detailed estimate from your legal representative before proceeding.

CAN I RECOVER INTEREST OR COMPENSATION FOR DELAY IN PAYMENT?

Yes. Federal Decree-Law No. 48 of 2023, Article 30, entitles the insured to claim interest on any delayed payment at the rate prescribed by the Central Bank of the UAE, calculated from the date the insurer's liability became due until the date of actual payment. The law also allows for compensation for consequential losses that are directly attributable to the insurer's unjustified refusal to pay, provided you can demonstrate a causal link and quantify the loss with supporting evidence.

WHAT HAPPENS IF THE INSURER DENIES LIABILITY BASED ON A POLICY EXCLUSION?

You must examine the exclusion clause in light of the Insurance Activities law, which prohibits insurers from relying on exclusions that contravene statutory provisions or public policy. For example, exclusions that attempt to remove coverage for workers' compensation, motor third-party liability, or construction risks are ineffective where the law mandates such cover. If the exclusion is valid, you may still pursue a claim for bad faith if the insurer's denial is unreasonable or based on misrepresentation; the courts may award damages for the insurer's conduct under the civil liability provisions of the UAE Civil Code.

FREQUENTLY ASKED QUESTIONS

What is the role of the Central Bank of the UAE in insurance disputes?
The Central Bank licenses insurers and supervises their compliance with Federal Decree-Law No. 48 of 2023, including solvency requirements and market conduct rules. It does not adjudicate individual claims, but its regulations inform the standards that insurers must meet when assessing coverage and handling complaints.

Can I bring a claim against an insurance broker instead of the insurer?
Yes. If the broker's negligence or breach of duty contributed to the loss-for example, by failing to secure adequate coverage or by misrepresenting policy terms-you may pursue a claim against the broker under the UAE Civil Code's tort provisions. The claim must be filed within the three-year limitation period applicable to tort actions.

Is mediation required before going to court?
The UAE encourages alternative dispute resolution, but mediation is not mandatory for insurance claims unless the policy contains a mediation clause or the parties have agreed to it voluntarily. If mediation is attempted and fails, you may proceed to litigation without prejudice.

How does the DIFC Courts process differ from the local civil courts for insurance claims?
The DIFC Courts apply their own Rules of Court DIFC, which follow common-law principles and allow for greater flexibility in case management, disclosure, and expert evidence. Proceedings are conducted in English, and judgments are enforceable in the DIFC and, under reciprocal arrangements, in other jurisdictions. The substantive law applied remains the governing law chosen in the insurance contract, which may be UAE federal law or another jurisdiction.

What if the insurer is insolvent or unable to pay?
If an insurer is declared insolvent, the policyholder may file a claim with the Insurance Compensation Fund established under Federal Decree-Law No. 48 of 2023, subject to the fund's limits and conditions. The fund steps in to satisfy valid claims up to the statutory ceiling, after which any remaining balance may be pursued against the insurer's estate in liquidation proceedings.

Are there any special considerations for cyber insurance claims?
Cyber policies must comply with the same licensing and disclosure requirements as other insurance products. Claims often involve forensic IT reports, notification to affected parties under data protection laws, and proof of loss mitigation efforts. The insurer's obligation to provide coverage is governed by the policy terms and the Insurance Activities law, and any dispute follows the same procedural route outlined above.

If your matter involves insurance disputes lawyer in the United Arab Emirates, you are welcome to request a consultation with Nour Attorneys. Our team can assess your position under the law currently in force and outline the options available to you. Request a consultation

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