I. Introduction
Challenging jurisdiction is one of the primary defences that any lawyer will check at the initial stages of reviewing the case file or preparing their defence strategy. This is one of the important procedural aspects (i.e. jurisdiction, arbitration clauses, limitations, and applicable law) to examine before delving into the substantive merits of the case.
Involving in an insurance case recently popped a question in my head asking whether the insurance committee is competent to disputes arise in specific emirates like Dubai insurance disputes or extend to all Emirates of UAE, and I wanted to share my research results in this matter with you.
II.Legal Framework
The Jurisdiction of UAE courts is regulated by the Federal Decree by Law No. (42) of 2022 Promulgating the Civil Procedure Code (“Civil Procedure Code”) or by specific laws about certain committees or free zones.
In the context of insurance disputes in the UAE, the insurance industry in the UAE is regulated by the Insurance Authority (“IA”) Established by Federal Law No. 6 of 2007, and the Insurance Dispute Resolution Committees is regulated by the IA Board of Directors Decision No. (33) of 2019 regarding the Insurance Dispute Resolution and Settlement Committees. (“IDRC”)
III.The Competence of the (“IDRC”):
The IDRC is competent to settle all types of insurance disputes arising from complaints made by the insured, beneficiaries, or individuals with an interest in the insurance dispute against the insurance company, regardless of the value of the claim.
However, the IDRC does not have jurisdiction over:
1. The summary and interim cases and orders and precautionary attachment.
2. The Insurance Disputes are pending before the courts before the Regulation goes into effect in any instance of litigation.
3. The Insurance Disputes that are subject to an arbitration clause.
4. The subrogation of an Insurer (Company), by the amount paid as insurance for damage, in the place of the insured or the beneficiary for the rights of any of them before the third party causing the damage for which
the insurer is liable or before the insurance company of the third party
causing the damage under a legal subrogation right.
5. Claims between Insurance Companies and the adjustment of balances.
6. Claims between Insurance-Related Professionals and Insurance Companies.
IV.Challenging the Territorial Jurisdiction
According to the IA Board of Directors Decision No. (33) of 2019, the IDRC operates under the Insurance Authority, a federal body with jurisdiction over all UAE territory. The establishment of IDRC branches in Abu Dhabi and Dubai does not imply separate jurisdiction; rather, it reflects an administrative arrangement for operational purposes. This organization does not limit any committee’s ability to adjudicate disputes throughout the UAE.
V.Dubai Courts Precedent: Case No. 96 of 2024
In a recent ruling on October 3, 2024 (Case No. 96 of 2024), the Dubai Court of Cassation affirmed that “The branch of the committee has jurisdiction to settle and resolve insurance disputes of all types and branches of insurance arising from the complaint of insureds, beneficiaries, or those with the capacity or interest in the insurance dispute against the company with the capacity in the insurance dispute without being restricted to a specific place in the territory of the UAE, as the formation of these committees is only an administrative organization of their work that has nothing to do with jurisdiction, and this organization does not prevent any committee from deciding any dispute within the territory of the UAE.”
VI.Conclusion
Challenging the territorial jurisdiction of the IDRC based on articles from the Civil Procedure Code is not a valid defense. It is incorrect to assume that each committee branch has separate territorial competence. All branches of the IDRC share the same jurisdiction across all Emirates in the UAE.
Which is approved by the legal principles as in the above judgment from the Dubai Court of Cassation in the Case No. 96 of 2024.
Disclaimer
This publication does not provide any legal advice and it is for information purposes only. You should not rely upon the material or information in this publication as a basis for making any business, legal, or other decisions. Therefore, any reliance on such material is strictly at your own risk.
Author: KHALED AL FAROUK (Paralegal)
