How to Register a Complaint Against an Insurance Company in UAE Over Claim Rejection?

The unprecedented weather disruption last month has led to a record number of motor and home insurance claims. According to Dubai-based insurance brokers, the total number of claims for damages typically expected over 12 years were filed within just a few days following the thunderstorms that struck the UAE on April 16.

While the Central Bank of the UAE (CBUAE), which oversees the insurance sector, has not provided exact figures on the number of cars or homes affected by the floods, insurance providers and brokers reported they had never seen so many claims caused by a single natural incident.

Insurance brokers estimate that approximately 100,000 vehicles in the country were affected by the rains. Many of these vehicles were deemed irreparable after being submerged in water, resulting in their classification as total losses.

Several cases are still pending responses from insurance providers, and many motorists are still waiting to receive their claims. It is expected that the situation will take two to three months to return to normal.

What if Your Claim is Rejected?

According to Snehal Singh, an insurance lawyer at Dubai-based NYK Law Firm, “if you believe the insurance company unfairly denies your claim, your next course of action is to submit a complaint to the Insurance Authority, overseen by the Central Bank of the UAE”.

Should the Central Bank of the UAE fail to address the matter, it will be forwarded to the court following standard jurisdictional protocols, she added.

Here's a detailed overview of the process:

Rejection of Claim: Upon the rejection of your claim by the insurance company, you will receive a formal notice outlining the reasons for denial.
Filing a Complaint: You must file a complaint with the Insurance Authority, providing all relevant documentation, including the rejection notice, policy details, and any correspondence with the insurance company.
Central Bank’s Role: The Insurance Authority, operating under the Central Bank of the UAE, will review your complaint. They may request additional information or documents to support your case.
Resolution by the Central Bank: The Central Bank will seek to mediate and resolve the issue. If they find merit in your claim and determine the insurance company is at fault, appropriate action will be taken.
Referral to Court: Should the Central Bank of the UAE be unable to satisfactorily resolve the issue, it will refer the case to the court, which will then adjudicate the matter based on jurisdictional rules and evidence provided.

This structured process ensures that all administrative remedies are exhausted before resorting to litigation, offering a systematic approach to resolving insurance disputes, Snehal Singh noted.

“We have received several complaints from consumers whose claim has been rejected from the insurance company. For such cases, initially we send a legal notice to the insurance company. If the issue isn’t resolved we’ll move on with further legal procedures,” Snehal Singh added.

How to File a Complaint Through Sanadak

Last month, the Central Bank confirmed that customers who encounter complaints or disputes with their insurance company have the option to address them through Sanadak, an independent financial unit established by the apex bank.

Before commencing the complaints process, it is crucial to understand the eligibility criteria for submitting complaints through Sanadak. You can file a complaint through the platform in the following cases:

• When a Licensed Financial Institution (LFI) or the insurance company fails to provide a specific service or product due to discrimination based on family or socio-economic status, gender, or minority group membership.
• In cases of alleged financial loss or harm resulting from deceptive, misleading, fraudulent, or unfair conduct by or on behalf of an LFI or insurance company.

However, certain conditions must be met:

• Initially, raise the complaint with the relevant insurance company before approaching Sanadak.
• Wait for a period of 30 calendar days after lodging the complaint with the company.
• Ensure there's no ongoing litigation in a court of law related to the complaint.
• Do not file a complaint related to a case falling outside the regulatory mandate of the Central Bank of the UAE.
• Do not raise a complaint if the matter has already reached a resolution between you and the company.

Sanadak reserves the right to reject complaint applications in all the aforementioned cases.

How to Submit a Complaint?

• Visit the website sanadak.gov.ae and select ‘Submit a complaint’ from the top menu.
• Choose ‘Submit a complaint related to an insurance company’.
• Complete the form to determine your eligibility to raise the complaint, addressing the criteria mentioned earlier. Once confirmed eligible, specify whether you wish to complain against a licensed financial institution or an insurance company.
• Sign in using your UAE Pass.
• Indicate whether you have an existing online account with Sanadak. If not, sign up, and your details will be auto-filled from your UAE Pass sign-in.
• Proceed by clicking ‘Log a complaint’.
• Read and accept the terms and conditions listed in the consent form.
• Provide the dispute information, including any response received from the insurance company. Once submitted, await a response from the Sanadak team, who will investigate the complaint by liaising with the concerned company and provide updates accordingly.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.