United Arab Emirates: Insurance

A person who drives on a UAE road without a driving licence, or with a licence that does not cover the type of vehicle he is driving, commits a criminal offence rather than a routine traffic violation. On a first offence, the court may impose imprisonment of up to three months and a fine of between AED 5,000 and AED 50,000, or either penalty alone. On a repeat offence, imprisonment is for not less than three months and the fine rises to between AED 20,000 and AED 100,000, again with the court able to impose either penalty alone. These penalties are set out in Article 37 of Federal Decree-Law No. (14) of 2024 on the Regulation of Traffic (the “Traffic Law”).

The UAE insurance market operates within a relatively stable and structured legal framework. However, external developments affecting energy, logistics, and regional supply chains are increasingly influencing the nature, timing, and complexity of claims.

The question tends to arise at the worst possible moment, because a policy is usually only tested when the insured event is close at hand. The following case study, drawn from a matter concluded by MIO & Partners, illustrates how such a cancellation was challenged and what the outcome was.

The UAE insurance market operates within a relatively stable and structured legal framework. However, external developments affecting energy, logistics, and regional supply chains are increasingly influencing the nature, timing, and complexity of claims.

With a number of new regulations issued and others in the pipeline, the UAE insurance regulatory landscape has entered a pivotal new phase.

The Central Bank of UAE (CBUAE) has issued Circular 1/2025 on the Representation Offices of Foreign Insurance Companies and Foreign Reinsurance Companies Regulation...