Habib Babikir June 11, 2025June 11, 2025 The United Arab Emirates (UAE) has established a unified regulatory body for the insurance and banking sectors, known as the Ombudsman Unit for the United Arab Emirates “Sanadak” (operating under the UAE Central Bank) Sanadak commenced operations on 07 March 2024, replacing the former Banking and Insurance Dispute Settlement Unit (BIDRU). The recently issued Federal Administrative Decision No. 10-A/1/2024 published on 20 February 2024 and effective from 15 March 2024, outlines the jurisdiction, powers, operational framework, and fees structure of the Insurance Disputes Settlement and Resolution Committees. This decision also details the dispute resolution mechanism, the finality of committee decisions, and the enforcement of such decisions as writs of execution. Insurance disputes often arise from issues such as contested claims, ambiguous policy terms, pre-existing conditions, or non-disclosure of information. Sanadak has exclusive jurisdiction to adjudicate disputes arising from insurance contracts, business, and services. Claims not submitted to Sanadak will be deemed inadmissible before the courts. Complaints must be filed through Sanadak’s official website, following the approved procedures. Upon reviewing submitted documents, Sanadak may contact the parties involved to request further submissions. Sanadak also has the discretion to facilitate an amicable settlement or initiate formal dispute resolution procedures if no settlement is reached. Dispute Resolution Process Submission of Complaint: Sanadak will accept complaints only if all required criteria and information are provided. Incomplete submissions will be rejected. Review of Complaint: Once accepted, Sanadak will review the complaint in detail and may request additional documents or clarifications from the parties. Insurance Company Response: Sanadak will ask the insurance company to respond to the complaint. Decision Issuance: After reviewing the response, Sanadak will issue a written decision. Escalation to the Insurance Dispute Resolution Committee: If the complaint is not resolved amicably or if either party is dissatisfied with Sanadak’s decision, the matter can be escalated to the Insurance Dispute Resolution Committee (Appeal Committee). Fees are payable to Sanadak for this escalation. Jurisdiction of Insurance Dispute Resolution Committee The committee is empowered to settle and resolve disputes related to all types and branches of insurance. It handles complaints from policyholders, beneficiaries, or other affected parties against insurance companies, regardless of the dispute’s monetary value. The committee is chaired by a judge and includes another judge and experts appointed by the Central Bank of the UAE (CBUAE). It may also seek assistance from registered consultants, inspection experts, and damage assessment specialists. Parties will be notified of the committee’s decisions via registered mail, through their company, or via remote communication methods. Exclusion from the Committees Jurisdiction The committee does not have jurisdiction over the following: Summary petitions or provisional seizure cases. Insurance disputes already filed in courts before the effective date of this system, regardless of the litigation stage. Disputes subject to arbitration. Subrogation claims by insurance companies. Claims between insurance companies regarding financial balances. Disputes between professionals engaged in insurance-related activities. Grounds for Rejecting a Complaint Pursuant to Article 6 of the Federal Admisterative Decision No. 10-A/1/2024, the committee may reject a complaint in the following cases: The same complaint was previously decided by the committee. The complainant fails to pay the remuneration of experts consulted during the process. The complaint falls outside the committee’s jurisdiction. The complaint does not meet the filing requirements. The claimant lacks legal interest or capacity to file the complaint. Committee Decision The committee will review and analyze before issuing a final decision. This decision is subject to appeal before the Appeal Courts. Challenging Committee Decision Decisions involving disputes valued at AED 50,000 or less are final and enforceable immediately. For disputes exceeding AED 50,000, parties may challenge the committee’s decision before the Court of Appeal within 30 days of the decision’s issuance or notification. Failure to appeal within this period renders the challenge inadmissible. Committee Fees Prior to 1 May 2024, escalating complaints to the insurance committees were free of charge. However, under the new decision: For disputes with a specific value, a fee of 4% of the claim value is imposed, with a minimum of AED 100 and a maximum of AED 30,000. For disputes with an undetermined value, a fixed fee of AED 3,000 Enforcement of Decision The committee’s decisions carry the force of a writ of execution. However, if the dispute exceeds AED 50,000 and an appeal is filed, the execution of the decision will be suspended pending the appeal’s outcome. Sanadak plays a pivotal role in safeguarding consumer interests, enhancing confidence in the UAE’s financial sector, and ensuring fair and efficient resolution of insurance disputes. By providing a structured and transparent dispute resolution mechanism, Sanadak strengthens the regulatory framework and fosters trust in the insurance industry.
