Insurance

If your insurance claim is denied, you should first carefully review the denial letter to understand the specific reasons given by the insurer. Request a copy of your policy and compare the denial reasons against the policy terms. If the denial is unjustified, you can file a formal complaint with the insurer’s internal complaints department, then escalate a complaint through Sanadak, the independent ombudsman unit for insurance related disputes in the UAE or engage an insurance lawyer to pursue your claim through negotiation or litigation.

Insurance lawyers in Dubai handle a wide range of disputes including claim denials and underpayments, policy interpretation disputes, bad faith claims against insurers, subrogation claims, professional indemnity claims, directors’ and officers’ liability claims, marine and cargo insurance disputes, property and business interruption claims, and motor insurance disputes. They represent both policyholders and insurers.

The time limit for filing an insurance claim depends on the type of policy and the specific terms of your contract. Generally, you should notify your insurer of a potential claim as soon as possible after the incident. Most policies require notification within a specified period based on the terms of the contract. For legal action against an insurer, the UAE Civil Code provides a general limitation period of three years from the date you became aware of the loss and the identity of the responsible party.

Subrogation is the legal right of an insurer, after paying the full claim to its policyholder, to step into the shoes of the policyholder and pursue recovery from any third party who was responsible for causing the loss. For example, if your car is damaged by another driver and your insurer pays in full for the repairs, the insurer can then sue the at-fault driver to recover the amount paid. This prevents the policyholder from receiving double compensation.

Yes, you can dispute the settlement amount offered by your insurer if you believe it does not adequately cover your loss. You should gather evidence to support your valuation, such as repair estimates, replacement costs, and expert opinions. You can negotiate directly with the insurer, request a re-assessment, or engage an insurance lawyer or loss adjuster to advocate on your behalf. If negotiations fail, you may pursue the matter through the courts.

Bad faith occurs when an insurance company unreasonably denies, delays, or underpays a valid claim without proper justification. Examples include failing to properly investigate a claim, misrepresenting policy terms, offering significantly less than the claim is worth, or using deceptive practices to avoid payment. While UAE law does not have a specific “bad faith” doctrine like some jurisdictions, the insurers are strictly bound by the mandatory ‘good faith’ doctrine under the UAE Civil Code. The policyholders can seek damages for breach of contract and, in some cases, compensation for the insurer’s wrongful conduct.

For straightforward claims that are processed smoothly, you typically do not need a lawyer. However, if your claim is denied, significantly underpaid, or involves complex policy interpretation issues, an insurance lawyer can be invaluable. They understand policy language, know how to negotiate with insurers, and can represent you in court if necessary. For large or complex claims, such as business interruption or professional liability, legal advice from the outset is often advisable.

The UAE Insurance Authority (now part of the Central Bank of the UAE) is referred as Insurance Supervision Department of the CBUAE and it regulates the insurance industry and can receive complaints from policyholders against licensed insurers. While it does not directly have the power to order an insurer to pay a claim, it can investigate complaints, mediate disputes, and take regulatory action against insurers who violate regulations. Filing a complaint with the regulator can sometimes encourage an insurer to reconsider a disputed claim.

The documents required varies based on the type of claim, but generally you should gather: the original insurance policy, proof of the incident (police reports, photos, videos), evidence of the loss or damage (repair estimates, medical reports, invoices), correspondence with the insurer, and any witness statements. For business claims, you may also need financial records, contracts, and expert valuations. Thorough documentation may significantly strengthen your claim.

An insurance lawyer in Dubai can review your policy to advise on coverage, assist with the claims process to ensure proper documentation and presentation, negotiate with the insurer on your behalf, challenge wrongful denials or underpayments, and represent you in court or arbitration if litigation becomes necessary. They can also advise on policy selection and risk management to help prevent future disputes.