Criminal and Civil Lawyers for Insurance Compensation

Insurance Companies are Liable

When, as per the Law, an insurance company has to pay the compensation, then it has to pay, and the company can not get rid 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 nature of the contract is a compensatory contract, where the risk is 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. It is as per the contract, then he has the right to file a case against the company. When a Civil Case is filed in this regard, then the plaintiff has full rights like other Civil Cases to demand the legal expenses and legal interest. All such things are up to the court’s decision. So what we have learnt from here is that Insurance Companies have no reason to reject the claims of customers. Second, there is a timeline; a claim is valid and not expired. When insurance is over, the customer has no right to ask for 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.

There are many companies operating in the UAE, and they are offering life insurance. It is seen a few times when an insurance company has to pay the beneficiary, then they come up with lame excuses like they do not want to pay and find ways to escape. Escape is not possible at all. Therefore, it is said above that the Insurance Company has no right to refuse the customer/beneficiary when he deserve it.

COVID-19 Leaves  

If an employee has been affected with COVID-19, also called COVID-Positive, then he or she has to 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 has to work continuously 3 months after the completion of his probationary period. During a probation period, no sick leave is allowed.

There is another scenario that needs to be discussed, and that is the sickness that comes during the annual leave. In this scenario, sick leaves will be considered part of annual leave. Article 77 of Law explains this situation in legal terms.

Gratuity:

UAE Labour Law says gratuity has to be paid at the end of the service. When a service is going to be ended, then employees should be paid the gratuity and all end-of-service benefits. Usually, it is paid the time VISA is cancelled, by Cash or Cheque. With the consent of both parties, it is not a bad option. We suggest that Cash must be made ready by the time the employee has to sign the cancellation agreement. It’s a good time to pay the end of services e.g. gratuity etc as well as 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 UAE Labour Law. As per the Law, employees can also ask for the end of service during the service e.g. the time of ending one contract and before renewing the contract. The law gives this right to the employee, and the employer is also not restricted or bound to pay at any cost. The employer also has the option to refuse the employee on this demand.      

The outstanding on the Bank Loan:  

UAE commercial transaction law Article 76 tells us that the creditor is allowed/eligible to receive the interest on a commercial loan, which is and should be as per the rate of interest mentioned 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 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, then a person can file the Case and demand the court to hire an expert to check and the correct calculation of the amount as well as all the 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 getting the complaint number from the police station, the matter can be taken to the public prosecution and 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 been entirely changed in bounce cheque cases. For example, just forgery or fraud through cheques can be lodged in Police Stations. Quick Executions can be opened for bounced cheques now. Decriminalisation under Federal Decree-Law No. 50 of 2022 has been associated with bounced cheque cases now. Therefore, there are no more criminal charges. These are like executive or enforceable instruments. It allows the holder to go to execution department directly. 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.