Ask the Law: What legal action can you take in UAE if car insurance company delays payment?
There is a dispute committee and a clear process in place to resolve such matters
Question: A month ago, my car was involved in an accident, but the insurance company is delaying the payment of the value of the car, as the car agency decided that the car was not repairable. What is the appropriate action to take against the insurance company?
Answer: You have to raise a claim to the insurance company and await its decision. If the company is delaying the decision or you have any objection to the processing of the claim, you may file a complaint to the Committee of the Insurance Disputes to settle the matter.
According to Article 7 of the Insurance Authority Board Resolution No. 33 of 2019 Concerning the Regulation of the Committees for the Settlement and Resolution of Insurance Disputes, the Defendant company shall process claims in accordance with the Law and applicable legislations and the provisions of the Insurance Policies.
1. If the Complainant has objection to the processing of application, it may file a complaint in writing to the Authority through the electronic system and all relevant documents and details shall be attached, including for example:
a. The name, address, post office box and phone number of the Complainant.
b. The addresses of electronic service of the Complainant, its legal representative or attorney.
c. The subject matter of and requests in the complaint.
d. The supporting documents to the complaint.
e. Any other documents related to the complaint.
2. The Authority requests clarifications from the Defendant through the electronic system, which clarifications shall be furnished within five working days.
3. The Complainant may object to the clarifications made by the Defendant and request that the Dispute be referred to the Committee.
4. The Complaint is entered in the record as per date of receipt. The Organisational Unit shall refer the complaint file to the competent Committee within three working days after the documents are completed. The Complainant is notified of the status of referring the Complaint to the Committee including the number of Complaint, date of referral and the Committee competent to hear it.