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UAE: Regulator to set up dispute resolution committees

Source: Middle East Insurance Review | Jan 2018

The Federal National Council has passed amendments to the law on the Insurance Authority (IA) that, among other measures, empower the regulator to set up specialised committees to resolve insurance disputes.
 
   The changes are introduced in the insurance dispute resolution system to save time, effort and money and reduce the backlog of cases in courts. Under the new rules, no dispute arising out of an insurance policy may be filed in court if it is not first submitted to the dispute resolution committee concerned, reported Gulf News.
 
   Decisions by these committees will be binding on the parties to the dispute. They can, however, challenge these decisions before the Court of First Instance within 30 days, from the date they become aware of them, failing which the decisions will become final.
 
   The changes also empower the authority to set prices and regulate rights and obligations and establish insurance funds. The IA is also empowered under the draft law to impose fines on insurers and appoint experts for inspection and auditing.
 
   The new rules have to be signed into law by President Shaikh Khalifa Bin Zayed Al Nahyan.
 
   At present, the Authority mandates that each insurer maintains a register of complaints from its clients, and must investigate each complaint within 15 days of the date of submission. Decisions should be recorded in the Complaint Register. Complainants can appeal decisions to the IA if their complaint is rejected by the insurer.
 
   The UAE courts have jurisdiction over any dispute arising out of an insurance policy, if the domicile of the insured is within the jurisdiction. The UAE courts also have jurisdiction over claims brought against a UAE legal entity or a foreign legal entity with a domicile or place of residence in the UAE. Any agreement to the contrary is void under the UAE law. The IA will generally require insurance policies issued in the UAE to be governed by UAE law. In the case of reinsurance policies, the parties can choose the jurisdiction applicable to the contract. M 
 
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