Insurance company

Ask the law: can I file a complaint if the car insurance company refuses to pay compensation?

Question: I have comprehensive insurance for my car. A month ago I gave my car to a friend who had a driver’s license and was 18 years old. This friend had a major accident which caused serious damage to my car and other cars as well. Currently, the insurance company has refused to pay any compensation on the grounds that the driver who caused the accident was too young and the insurance company’s protection plan does not cover such accidents. My question is: Am I legally entitled to bring a civil action against the insurance company to force them to pay compensation? Please advise.

To respond: You have the legal right to take civil action against the insurance company to force them to pay compensation because since the driver had a valid driver’s license under UAE law, that means his age was within accepted limits. Therefore, the insurance company can have no excuse for not paying the indemnity.

Section 13 of the United Arab Emirates Federal Traffic Law No. 21 of 1995, as amended, states: “No person shall drive a motor vehicle on the road unless he holds a valid license issued by the licensing authority which authorizes him to drive the same type of vehicle that he drives. Such license is referred to in this Act as a driver’s license. Similarly, no person responsible for a motor vehicle may not be driven by a person who does not hold a license authorizing him to drive it.

In this case, since the driver has complied with the above conditions, the insurance company must pay the compensation.

The insurance company, in accordance with the “Unified Automobile Loss and Damage Policy”, has the right not to pay any compensation for damage to the vehicle resulting from an accident occurring while the vehicle was being driven or operated by a driver who was not licensed to drive in accordance with UAE traffic laws or who had not obtained a driver’s license for the specific type/category of vehicle in accordance with traffic laws and regulations of the United Arab Emirates and the provisions of this policy. Or if the accident occurred while the vehicle was driven by a person whose driver’s license had expired and had not been renewed within 30 days of the date the accident occurred. Or the license granted to the driver had been suspended by the court or the competent authorities or under the traffic laws of the United Arab Emirates.

Apart from these special circumstances, as mentioned above, the insurance company is obliged to pay compensation.

Terminate a partnership agreement

Question: I am a partner in a limited liability company. The company operates and makes a profit according to the statements of company employees, but for the past two years, I have not received any profit from the company. According to the director, the company did not make a profit, but rather suffered huge losses. What is the appropriate legal action I can take against the entrepreneur to claim my share of the profits. Where can I sell my stake in the company and get out of the partnership agreement?

To respond: As a general rule, the manager of a limited liability company must, in the event of a claim, inform the general meeting of partners, so that it can decide on the future of the company. Article 308 of Federal Decree-Law No. (32) of 2021 on commercial companies states:

1) If the losses of a limited liability company affect half of its capital, the managers submit the dissolution of the company to the general meeting of the partners. The dissolution decision is taken by the majority required to modify the Company’s articles of association.

2) If the losses reach three quarters of the capital, the partners holding one quarter of the capital may request the dissolution of the company.

In addition, in accordance with article 84 of Federal Decree-Law No. (32) of 2021 on commercial companies, each manager of a limited liability company is liable towards the company, the partners and third parties for any fraudulent act. committed by the Manager and shall also be liable for any loss or expense which it incurs by reason of any abuse of power or breach of the provisions of any applicable law, the company’s memorandum or the contract of its appointment or any gross error made by the manager.

The appropriate action to take in this case is to take legal action against the company and ask the court to appoint an expert whose task will be to examine the financial statements and budgets of the company for the last two years and to file a report indicating whether the company had made a profit or suffered a loss. In the event of losses, the company must indicate whether the manager was responsible for these losses.

Based on the aforementioned report, you must decide whether to continue in the business or leave the partnership or dissolve the business.

If the business is found to have made a profit, you can claim your share of those profits and continue the partnership. However, if you find that the company has suffered losses and the manager is responsible for them, you can sue the manager, seek compensation and ask for the company to be dissolved under Section 308, or you can sell your shares in the company.