Insurance & Compensation

Insurance claims arise under the policy terms and the law, while compensation for accidents and damage rests on the rules of civil liability. Insurers are supervised by the Central Bank of the UAE under the law in force since 16 September 2025.

The policy defines the cover. Cover, exclusions, notification duties and limits are set by the policy. Late notice or incomplete disclosure can be raised by the insurer to resist a claim.

Committees come first. Claims arising from insurance contracts are not accepted by the courts unless the dispute has first been presented to the Central Bank's insurance dispute committees (Sanadak). Their decisions are final up to AED 100,000; above that, they can be challenged before the Court of Appeal within 30 days.

Compensation for harm. Compensation for injury or damage covers proven loss and, under the new Civil Transactions Law, moral damage. Medical reports, police reports and expert evidence are usually decisive.

Time limits. Claims under insurance contracts and claims for harmful acts are subject to limitation periods. Transitional rules apply to periods running when the new civil law came into force.

Notify the insurer in writing as soon as possible, keep a copy of the full policy and record all communications. Do not accept a settlement before the full extent of the loss is known.

Legal framework
Federal Decree-Law No. 6 of 2025 regarding the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business (repealed Federal Decree-Law No. 48 of 2023 on insurance)
Federal Decree-Law No. 25 of 2025 (Civil Transactions Law): insurance contract and civil liability

Committee procedures, fees and time limits are set by Central Bank decisions and can change. Limitation periods for insurance claims under the new Civil Transactions Law should be confirmed for each claim.