UAE Law and Practice Contributed by: Farida Safwat, Elham Mobini and Ramy George, NHB Legal
However, conduct exclusions (particularly fraud, dis- honesty or wilful misconduct) produce large volumes of interim disputes. Where insurers seek to withhold funding until they can determine whether excluded conduct occurred, this can create tension between the insured’s immediate need for funding of its defence and the insurer’s desire to avoid funding uninsurable conduct. Usually, this issue is resolved by commercial settlement rather than in court. In addition, while mandatory professional indemni- ty (PI) cover is being extended to new professional categories, causing PI disputes to grow in number, the digitalisation of professional services adds fur- ther complexity in that where an error is made by an automated system (rather than a human professional), the question of whether PI cover applies depends on whether the policy contemplates technology being used to assist in the delivery of the service. 4.10 Casualty Coverage Trends Motor, construction and general liability segments dominate casualty insurance disputes in the UAE, which reflects the infrastructure-intensive develop- ment path of the economy and the mandatory nature of motor and health insurance. The most common type of third-party bodily injury claim is a motor claim, involving disputes over quantum (particularly in rela- tion to serious injuries attracting blood money/ diya and civil compensation), contributory negligence allocations and the extent of compulsory cover as opposed to optional extensions. Construction liability disputes are complex and involve multiple parties. Disputes under contractor’s all-risk (CAR) policies often centre on the line between cov- ered physical loss and excluded faulty workmanship, the scope of coverage during the maintenance period and cross-liability among multiple insureds under a single project policy. Claims of neighbouring proper- ties, passing pedestrians and site workers challenge third-party liability provisions. Disputes often hinge on whether adequate safety measures are a condition precedent to coverage. The proliferation of general liability claims in the hos- pitality, retail and health-care industries is being driven by elevated consumer awareness and lower barriers
to claims through regulatory complaint mechanisms. Medical malpractice claims are particularly active, with disputes over aggregate limit exhaustion in hospital portfolio policies, the scope of coverage for employed versus visiting physicians, and whether administrative or systemic failures (versus individual clinical negli- gence) are covered. The overall trend is towards more frequent, more sophisticated and higher-value casu- alty disputes, driven by economic growth, population increase and the maturation of the UAE’s consumer protection framework. With the UAE having approximately 1.4 million regis- tered companies and many ongoing projects, the key areas generating the highest volume of claims against insureds are construction, professional services, D&O liability, health-care, and the motor industry. However, construction continues to dominate, as con- tractors, sub-contractors and engineers frequently face claims raised by project owners or third parties regarding defects and design deficiencies that have caused personal injury or damage to property. 5. Claims Against Insureds 5.1 Key Exposure Areas for Insureds Professional indemnity claims are also increasing against directors, auditors, financial advisers, and other professionals, reflecting the clients’ willingness to pursue negligence claims, especially in DIFC estab- lishments where they observe constantly heightened regulatory scrutiny. Health-care remains another significant area, as medical malpractice claims brought against doctors, hospitals and medical centres have grown due to the increased demand for cosmetic surgeries, weight-loss surgeries and other critical surgical procedures related to health issues. In light of all the above, insurers find it most cost- efficient to fund the defence costs of insureds, and to become involved at the earlier stages of disputes to proactively develop defence strategies, reducing over- all exposure, and increasing settlement outcomes.
276 I NSURANCE L I T IGATI O N 2026
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