A Discussion on Insurance

Natural Disasters

Rain is a need of this earth and Mother Nature directs this phenomenon to be happened for the survival of humankind on this planet. Rain is required with a moderate requirement. Because heavy rain is changed in to storm which can cause human and material losses for the same human beings. UAE has been hit by heavy rains a couple of times as well, which caused damages a lot. Fortunately, people are always saved in the UAE. Once such loss is done then owners have to think about their insurance and its provided protection. They start thinking that how much could be covered by these insurance companies. Along with the “Rain”, there are several factors as well where natural disasters cause a heavy loss. Floods, Natural Disasters, Earthquakes, etc. Let’s discuss this in terms of loss, insurance covering ratio, benefits involved etc.

Insurance is described as a legal contract between company offering insurance and the insured person and company. Insurance company promises for covering risks and losses and insured person or companies have to pay the agreed premium in terms of installments. If the insurance policy covers the damages from natural disasters or rain then insurance company is legally liable and bound to pay it. Based on the covering policy or coverage policy, company becomes liable and a lawsuit can be opened. Therefore, terms and conditions must be explored very carefully and accepted very carefully at the time of signing the contract. Article 287, UAE Civil Law clearly states that the insurance provider does not become liable if the loss occurs due to an event which is not controllable or in the hands of anyone to be stopped or can’t be controlled. Therefore, clauses like “No Responsibility”, “Customized Terms” or “Force Majeure” should not be discussed or accepted from a perspective where it provides a complete exemption to the insurance provider. The insured party must have to read and accept the terms and conditions very carefully. The insurance lawyers must be hired from the beginning for any type of insurance policy. When Force Majeure is signed between the insured party and the insurance company then insurance company tries to take advantage of this. However, the courts of UAE and the judges are very smart. They give the verdict discretion to judges where they have the authority to make the final decision. You can consult the top lawyers about this.

Even, if Rain and Natural Disasters are accepted by both parties then still insurance provider has right to defend the lawsuit. For example, if water comes due to a flood, or any damage which is a mistake conducted by government or the insured person is involved himself in the loss, then insurance companies can’t be held accountable. It is still a challenge.

Mistakes made by insured persons or companies can also be challenged. Law provides a provision to insured companies that if the mistakes are done by the insured party intentionally or unintentionally then it can be challenged in court. Therefore, there is nothing like that insured companies or persons can take the wrong advantage of the insurance protection plan. Insurance companies are very smart all over the world.