Insurance law is a vast field that encompasses a set of legal principles and regulations. An insurance law governs the business and companies associated with insurance.The legal principles assist in dealing with the relationship between insurance companies, policyholders, and other related parties.
Therefore, it governs the relationship between different stakeholders involved in the insurance industry. The prime goal of the insurance law is to provide a legal framework for all types of insurance businesses in the UAE.It is a way to protect the interests of policyholders, insurance companies, and others involved in the process.
Besides, it also ensures a fair, free, and ethical operation of the insurance companies in the industry. Emirati Attorneys are the reliable sources for getting latest law details and services. Prefer to visit the Top and Best Law Firms in Dubai for the most professional legal consultants.
Key Aspects of Insurance Laws in the UAE:
There is a proper regulatory body in the UAE named the Insurance Authority (IA). They are responsible for overviewing and reviewing the matters related to the insurance sector of the UAE.The insurance authority was established to regulate, supervise, and manage the insurance industry of the UAE. IA of UAE safeguards the rights of policyholders, insurance businesses, and other stakeholders.
Besides, they also provide stability and development to the insurance market in an adequate manner. Initially, Federal Law was introduced in the year 2007. The law is named as Insurance Authority Law.It offers a platform and a legal framework for the laws and rules.
Some Basic Principles:
Federal law of 2007 outlines the powers and responsibilities of the Insurance Authority alongside the set of guidelines especially for the insurance industry in the UAE.Certain types of insurance are mandatory in the UAE. It includes the health insurance covered by the employer to the employees. It also covers vehicle insurance which is compulsory for all the drivers in the Emirates.
Insurance companies, businesses, and intermediaries must obtain a license to practice. This also includes the insurance brokers and agents who must have a license. Licensing is obtained from the need Insurance Authority (IA) of UAE.
The authority establishes the criteria for licensing in the UAE. Additionally, it regulates the conduct of all the companies and businesses that are involved in insurance-related activities.
Nonetheless, Insurance businesses or companies need to adhere to the financial regulations of the region.The primary objective of the inclusion of insurance laws in the UAE is to safeguard the rights of policyholders. It offers consumer protection to the policyholders in the country.
The Insurance Authority (IA) has provided the much-needed guidelines to ensure fair treatment of policyholders and to address their concerns in a timely way.
The Changes Introduced to the Insurance Law of UAE:
The insurance laws in the UAE are governed by Federal laws and rules. The laws are subject to change and most recently in 2023, the legal framework underwent some significant changes. In recent times, the UAE has made a groundbreaking change to the current insurance laws of 2007. The federal law that was allotted to deal with insurance-related issues is now altered with Insurance Laws 2023.
This new change will be officially effective from the end of November 2023. Substantial alterations were introduced in the aspect of insurance dispute resolution.The previous laws of 2007 have been repealed by the UAE officials. It reveals that any previous law that conflicts with the new law will no longer be applicable.
The Significant:
Insurance companies in the UAE are now mandated under the law to issue clear decisions on insurance claims. They must provide valid and explicit reasons for the rejections of insurance claims.This radical shift is introduced with the motive to offer greater accountability. Besides, it also provides more transparency and clarity in the process of insurance.
Supported by Insurance Law2007, Insurance Settlement Dispute Committee (IDC) that was maderesponsible for resolving insurancedisputes in United Arab Emirates.
Under the new Insurance law of 2023, the regulatory body has changed for settling insurance disputes.
This represents a remarkable move towards a more cohesive, well-structured, and specialized dispute resolution process for settling insurance-related disputes and matters.
There is a revision in the appeal procedures as per the new insurance law of 2023. It says that the claims under AED 50,000 are final. All the decisions made by the Banking and Insurance Dispute Resolution Unit (BIDRU) are ultimately based on the claims.
There is no scope for insurers to appeal. The claims that are over AED 50,000 have a different treatment. Under this, both the insurers and relevant parties have the right to appeal.They can appeal the BIDRU decisions before the Court of Appeal within 30 days. All the decisions made by BIDRU on insurance-related disputes within the bracket of AED 50,000 are immediately enforceable.
On the flip side, for disputes that exceed this value, an appeal can be made. Under this, an additional layer of protection is provided to the insurers for larger claims.
Seek Legal expertise in Navigating Insurance Law Changes:
There are several awaiting developments: to the insurance laws of 2023. The policy adopted by the UAE is a more balanced and expert driver towards insurance dispute resolution.The knowledgeable lawyers can help with the unfolding changes in the UAE legal framework.
Professional lawyers in the UAE can aid with the interpretation of laws according to the changes of 2023. In the matter of disputes and disagreements, they can guide their client to a smooth transition. Besides, they can easily make appeals if required.
Understanding the intricacies of the new Insurance Law 2023 is pertinent for all stakeholders in the UAE insurance industry. Besides, they will ensure compliance with the new laws and regulations.
As the laws are ever-changing, specialist lawyers are valuable partners in guiding through all the complexities.Therefore, make the transition period easier with the support and advice of the legal expert.
