Court Orders Firm to Repay Dh1.38M to Insurance Provider in Absentia Ruling

A court has ordered a company to repay Dh1,380,299 to an insurance provider after ruling that the employer became liable for reimbursement once the insurer settled workers’ dues under the policy.

The case arose after the insurer paid compensation to employees covered under an insurance arrangement linked to labour obligations. Following the payout, the insurer initiated proceedings seeking recovery of the amount from the employer, arguing that the liability shifted to the company once the claim had been satisfied.

The court agreed with this position, stating that the obligation to reimburse arises upon liquidation of the insurance coverage and payment of workers’ dues, regardless of whether the underlying labour judgment had attained final
status.

The court also recorded that the company did not appear before it or submit any defence, despite being duly served with legal notice. As a result, the proceedings were heard ex parte and a judgment was issued in absentia.

Finding in favour of the insurer, the court ordered the company to repay the full amount of Dh1,380,299.

In addition, the court awarded legal interest at 5 per cent per annum, calculated from the date of filing of the judicial claim until full settlement.

The company was further directed to bear court fees, expenses, and lawyer’s fees incurred in the proceedings.

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