UAE: Can I sue my insurance firm for rejecting fire damage claim by accusing me of arson?

Question: Two months ago, a fire broke out in my factory. I approached the insurance company for compensation, but it rejected my claim by alleging that I started the fire to get compensation. What action can I take against the insurance company?

Answer: According to Article 1039 of the UAE Civil Transaction Law, the insurance company is not liable to pay compensation if the damage is caused deliberately or fraudulently by the insured or the beneficiary.

It is liable for damages resulting from the unintentional fault of the insured or the beneficiary. But such a matter shall be decided by the court. This means that you have the right to file a case against the insurance company. The burden of proof relies on you to show that their allegations are not true.

You may transfer the matter to an expert who shall examine your factory and prove that the fire was not caused by you deliberately, or fraudulently in order to get compensation.