Insurance Claim Rejected or Underpaid in UAE?

Your Legal Rights Under UAE Insurance Law

Federal Law No. 6 of 2007 and the UAE Insurance Authority's regulations, now consolidated under the Central Bank of UAE's oversight, establish a clear framework protecting policyholders. Insurance Law 48/2023 introduced stronger consumer protections, including mandatory dispute resolution through SANADAK before litigation.

Key rights you hold as a UAE insurance claimant:

• The right to receive a written explanation for any claim rejection within a reasonable period.
• The right to challenge rejection through SANADAK (free, fast-track) before the need to litigate.
• The right to escalate to Dubai Courts, Abu Dhabi Courts, or DIFC Courts depending on jurisdiction.
• The right to independent expert valuation of injuries or damages where the insurer's assessment is disputed.
• The right to claim compensation for consequential losses (lost income, further medical costs) beyond the immediate policy payout.

The SANADAK Process: Step by Step

SANADAK (the UAE Central Bank's financial dispute resolution centre) is the mandatory first port of call for most insurance disputes in the UAE. The process is free, faster than court, and has real teeth — insurers are legally bound by its decisions.

• Step 1 — Internal Complaint: Before SANADAK, you must first raise a formal written complaint with the insurer and allow 7–15 business days for a response.
• Step 2 — SANADAK Filing: If unsatisfied with the insurer's response (or no response), file your complaint via the SANADAK portal (sanadak.gov.ae) with supporting documentation.
• Step 3 — Mediation: SANADAK may attempt mediated settlement between both parties.
• Step 4 — Adjudication: If mediation fails, a SANADAK adjudicator reviews the case and issues a binding decision.
• Step 5 — Court Escalation (if needed): If SANADAK's decision is unsatisfactory or for high-value disputes above AED 50,000, the case can proceed to Dubai Courts or the Court of Appeal.

When to Go Directly to Court

SANADAK is mandatory for most standard insurance disputes, but court action may be appropriate or required in specific circumstances:

• Claims exceeding AED 50,000 where SANADAK's jurisdiction may be limited.
• Cases involving alleged fraud, criminal conduct, or where the insurer is unregistered.
• Where urgent interim orders (injunctions, asset freezes) are needed to preserve evidence or funds.
• Third-party claims (e.g., injured parties pursuing the insurer directly under direct action rights).
• Appeals against SANADAK decisions within the permitted time limits.

Our lawyers assess which route — SANADAK, the courts, or a parallel strategy — gives you the strongest outcome in your specific case.

Types of Insurance Claims We Challenge

• Motor / Car accident claims — rejected third-party liability, low settlement offers, disputed fault percentages.
• Personal injury / Diya claims — insurer disputes disability percentage or refuses to pay the statutory diya amount.
• Medical insurance — pre-authorisation denials, post-treatment cost rejections, out-of-network disputes.
• Property and fire insurance — undervaluation of loss, disputed cause of damage, late payment.
• Life and critical illness — rejection on non-disclosure grounds or disputed medical diagnosis.
• Employer liability and workmen's compensation — rejection of work injury claims.