Introduction 
On 25 April 2018, His Highness, Sheikh Khalifa Bin Zayed Al Nahyan, the President of the UAE issued Federal Law No. (3) of 2018 on the Amendment of Certain Provisions of Federal Law No. (6) of 2007 Concerning the Establishment of the Insurance Authority & Organization of its Operations. The new Law went into force on 01 May 2018.

Establishment of Committee to Resolve Insurance Disputes
The most significant amendment was the establishment of a special Committee in accordance with new Article 110. The Committee shall resolve the dispute and issue its decision. An unsatisfied party to the dispute may appeal its decision before the First Instance Court within 30 days of being notified of the decision.

Referring Insurance Disputes to Committee is Mandatory before Filing a Law Suit
Article 110 provides that an insurance dispute shall not be heard by the court if the claimant does not file the dispute first with the Committee and obtain a decision.

Abu Dhabi Court Dismisses a Case Filed by An Insurer
Subsequent to the amendments, the Abu Dhabi Court of First Instance issued a judgment on 29/07/2018 which dismissed a case filed by an insurer against the insurance company who sought recovery of damages to his insured car. The Court dismissed the case observing that the Claimant/Insured has not followed the route prescribed by Article 110 of the Federal Law No. 3 for Year 2018 that set up a committee to resolve insurance disputes.

Other Amendments
Furthermore, in accordance with new Article 28 insurance policies shall be issued in Arabic accompanied by a true translation to another language if needed.
In line with modern legislations, Article 28 stated that the policy`s articles exempting the company from the liability shall be written in bold letters and different colour and must be acknowledged by the insured. This amendment is meant to protect the insured against onerous exemptions.

Get in touch with our lawyers  Samer Abou Said  or  Imad Kassir  for more information on how you would be affected by the provisions of the new Law.