UAE: Fundamental change in claims management

The UAE's insurance regulator issued, on 15 July 2019, a new, highly restrictive claims management procedure. The new text will come into effect three months following its publication in the Official Gazette.

According to the law firm Clyde-Co in charge of drafting the project, all insurers in the United Arab Emirates will have to consider the implications of the decision on their claims management operations.

The new text provides for the creation of specialized committees to settle all insurance disputes and all types of claims. Policyholders and other beneficiaries will be able to submit their complaints directly to these committees. The latter consist of three members, each of whom is appointed for a (renewable) one-year period. Each Committee will include one chairman and two members appointed by the UAE Insurance Authority.

Under the new text, a claim is settled in accordance with the terms and obligations contained in the insurance contract. An insured who does not receive a reply to his claim on time can submit his complaint to the Insurance Authority. The latter then contacts the insurer who has five days to respond. Otherwise, the complaint is forwarded to the technical committee, which has 15 working days to settle the matter definitively. This deadline may be extended following the parties' agreement or by decision of the committee's chairman.

Policyholders can file their complaints via electronic means (e-mail) supported by available documents and evidence. Committees have a wide discretion to receive documents and testimonies electronically, manage files by email or remotely. They can hold remote hearings via videoconference.

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