Resolving Insurance Disputes in the UAE: Your Path to Fairness through ‘Sanadak’

The Central Bank of UAE’s Sanadak Ombudsman Unit offers an independent and transparent mechanism for resolving insurance complaints, ensuring consumer protection and equitable outcomes

The Central Bank of UAE has taken a significant step towards promoting fairness and transparency in the insurance sector by establishing an independent Ombudsman Unit called "Sanadak". This initiative provides consumers with a strong mechanism to resolve disputes and grievances with the Insurance Companies in the UAE.

Key Aspects of resolving insurance disputes through Sanadak: 

1. Independence and Autonomy:

• Sanadak operates as an independent entity with administrative autonomy.

• It functions under the Central Bank's oversight but maintains independence in managing complaint processes, ensuring impartial and fair resolutions.

• This independence builds consumer trust, ensuring the process is not influenced by external pressures.

2. Principles Guiding Sanadak:

• Sanadak adheres to principles of fairness, equity, objectivity, legality, and integrity.

• It handles complaints involving misleading practices, unfair treatment, or non-compliance with regulations by insurance providers.

3. Eligibility for Filing Complaints:

• Consumers must first and foremost file a complaint with the internal complaint handling department of the insurance company. If dissatisfied with the response, the consumers may approach the Sanadak after 30 business days.

• Consumers themselves can file complaints with the Sanadak via online mode.

• The Sanadak may reject complaints in specific cases, such as:

• If the matter is under legal proceedings in any court.

• If there was insufficient communication with the institution before filing.

• If the complaint falls outside the prescribed time limits.

4. Dispute resolution by co-operative effort:

• The insurance companies must co-operate fully with Sanadak in providing accurate information promptly.

• Similarly, complainants must also provide all necessary details related to their case. Failure to meet these requirements may result in the dismissal of the complaint.

5. Time frame for filing complaints:

• Complaints should be lodged within 3 years of the incident or within 2 years from when the complainant became aware of the issue, whichever is later.

   

6. Decision-Making Process:

• After reviewing the complaint, Sanadak makes a determination to either uphold, partially uphold, or reject it.

• Decisions are based on whether the insurance company was deceptive, or unfair to the consumer.

• If any party disagrees with the decision, they can escalate the matter to the Appeals Committee within 30 business days.

• If the party disagrees with the decision of the Appeals Committee, then matter can be taken to the courts.

7. Enforcement and Compliance:

• When a complaint is upheld, Sanadak can direct the financial institution or insurance company to take corrective actions, including compensation for losses incurred by the complainant.

• These determinations are binding, and non-compliance can lead to enforcement actions by the Central Bank.

Conclusion

The establishment of the Sanadak marks a significant advancement in consumer protection within the UAE’s insurance and financial sectors, offering an effective, transparent, and fair process for resolving disputes.

At NYK Law Firm, we specialize in guiding clients through the complexities of insurance disputes in the UAE. With our expertise, we ensure that your rights are protected at every step, providing you with peace of mind and clarity in even the most challenging situations.

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