The new insurance laws in the United Arab Emirates have replaced the Insurance Settlement Dispute Committee (IDC) with the Banking and Insurance Dispute Resolution Unit (Bidru). This independent unit now serves as a legal body, tasked with handling complaints lodged against insurance companies.

This new unit has extensive responsibilities, extending to the resolution of conflicts arising from insurance contracts, as well as services provided within the insurance domain.

The new insurance law came into effect on November 30, 2023. As per the law, if a claim's value is below AED 50,000, insurers are unable to contest the Bidru's decision. However, if the claim surpasses AED 50,000, insurers have a window of 30 days from the decision's issuance or notification date to appeal the unit's decision at the Court of Appeal.

Under the new law, individuals can procure insurance from international companies if such coverage isn't available locally. Additionally, the law permits electronic issuance of policies, and specific policies may be exempted from mandating the Arabic language.

Article 104 of the updated insurance law empowers the Central Bank to intervene in legal disputes involving insurance or reinsurance entities. This includes providing insights, data, or information to the relevant authorities following an investigation into the matter, upon notification of the lawsuit.

The new law signifies a significant shift in the UAE's insurance landscape, ushering in changes in policies, jurisdiction, and regulatory oversight.

Furthermore, the updated insurance law will extend its jurisdiction to companies operating within non-financial free zones and the mainland UAE. However, it will not apply to companies operating within financial-free zones. Unlike the 2007 Insurance Law, which excluded free zones without specifying between financial and non-financial zones.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.