Criminal and Civil Lawyers for Insurance Compensation

Insurance Companies are Liable

When, as per the Law, an insurance company has to pay compensation, it must pay, and it cannot get out of it. When an insurance company has to pay, it has no right to back out or refuse to pay. Serious litigation will be waiting for the company otherwise. It has to be put inside the insurance agreement that the company will compensate the customer, as per the agreed terms between the company and the customer. The contract is a compensatory contract, with the risk covered by the company. That is why the customer/insurance taker pays a premium, which can be monthly or annually, to the insurance company.

If the insurance company does not pay the customer when he needs the claim money, then it violates the contractual value of money. If it is as per the contract, he has the right to file a case against the company. When a Civil Case is filed in this regard, the plaintiff has the same rights as in other Civil Cases to recover legal expenses and legal interest. All such things are up to the court’s decision. So what we have learnt here is that Insurance Companies have no reason to reject customers’ claims. Second, there is a timeline; a claim is valid and not expired. Once insurance coverage ends, the customer has no right to seek compensation.

The Law Article 1034, which is” insurer is bound to pay the insured amount or the sum due to the insured or the beneficiary, as agreed, upon the occurrence of the risk or maturity of the period fixed in the contract” clearly tells us that the insurance company/insurer has to compensate the customer as per the agreed terms, which should be legitimate as per the Law, agreed by both parties, the time it is required. Countries like the United Arab Emirates do not allow any kind of company to exploit the rights of beneficiaries/customers/employees. Articles 1040 and 1041 also clearly state that the insurer will pay the cost of unintentional damage or loss of the beneficiary.

Many companies in the UAE offer life insurance. It happens a few times: when an insurance company has to pay the beneficiary, they come up with lame excuses like they don’t want to pay and find ways to escape. Escape is not possible at all. Therefore, as stated above, the Insurance Company has no right to refuse the customer/beneficiary when he is entitled to it.

COVID-19 Leaves  

If an employee has been diagnosed with COVID-19, also called COVID-Positive, they must be isolated. He/she can take 15 Days off with Full Salary and 30 Days off with Half Salary, as per Article 83 of the UAE Labour Law. It is derived from the already existing UAE Labour Law Rule as per Article 83, which says that after the completion of the probation period, an employee can take 90 Days off due to sickness, as 15 Days with full salary, then 30 days with half salary, and then the rest of the days with zero salary. But an employee must work continuously for 3 months after completing their probationary period. During a probation period, no sick leave is allowed.

Another scenario that needs to be discussed is the sickness that occurs during annual leave. In this scenario, sick leave will be counted as part of annual leave. Article 77 of the Law explains this situation in legal terms.

Gratuity:

UAE Labour Law requires gratuity to be paid at the end of service. When a service is ending, employees should be paid the gratuity and all end-of-service benefits. Usually, when the visa is cancelled, payment is made in cash or by cheque. With the consent of both parties, it is not a bad option. We suggest that the Cash must be made ready by the time the employee signs the cancellation agreement. It’s a good time to pay the end-of-service fees, e.g., gratuity, and to get the cancellation paper signed. As per the Law, there must be no break for calculating the gratuity. From the time the employee started the service and the day the employee got it ended, the employer has to pay the end-of-service amount as per the recommended calculation formula by the UAE Labour Law. As per the Law, employees can also request termination of service during service, e.g., at the time of ending one contract before renewing the contract. The equal salary law in the UAE grants this right to the employee, and the employer is not required to pay at any cost. The employer also has the option to refuse the employee’s demand.      

The outstanding on the Bank Loan:  

UAE commercial transaction law, Article 76, states that the creditor is entitled to receive interest on a commercial loan, which should be at the rate of interest specified in the contract. If intentionally or by mistake, the rate of interest is not mentioned in the contract, then it is decided as per the rate of interest implemented in the market, but the time the deal was done/made, provided that the rate of interest will not be more than 12% till the time of full settlement.

Article 77 makes an addition and states that” Where the contract stipulates the rate of interest and the debtor delays payment, the interest on the arrears shall be calculated on the basis of the agreed rate until full settlement”. When there is a requirement to file the Case, a person can file the Case and demand that the court appoint an expert to review and correct the calculation of the amount, as well as all related items. This case is called the Bank Expert Appointment Dispute Case.  

Cases on Cheque Bounce:

When a cheque is bounced, e.g., a current-dated or a post-dated cheque, then a police complaint can be lodged against the signatory. After obtaining the complaint number from the police station, the matter can be taken to the public prosecutor and the criminal court. Along with the Criminal Case, the Civil Case can also be opened against the drawer/signatory. This is the right of the person who is given a cheque that is not credited.

• Note Added in 2025: These are all the posts from 2021. New laws have completely changed bounce cheque cases. For example, forgery or fraud through cheques can be lodged in Police Stations. Quick Executions can now be opened for bounced cheques. Decriminalisation under Federal Decree-Law No. 50 of 2022 has now been associated with bounced cheque cases. Therefore, there are no more criminal charges. These are like executive or enforceable instruments. It allows the holder to go directly to the execution department. Role and Support of Criminal and Civil Lawyers for Insurance Compensation and other cases can be well understood by calling our legal experts and booking a professional legal appointment.