UAE Civil Code 2026: are insureds’ disclosure obligations shifting?

The new UAE Civil Code - Federal Decree-Law (No. 25 of 2025) - effective from 1 June 2026, represents the most wide-ranging changes in decades. This bulletin forms part of Kennedys’ series analysing how selected reforms may affect insurers. 

Under the current law, an insured must disclose all material information at policy inception, being information which impacts the insurer’s assessment of the risk. The insured must also notify insurers of any developments which increase the risk throughout the life of the policy. 

The new Civil Code reframes the insured’s disclosure obligation at placement. With effect from 1 June 2026, the insured is required to disclose information the insurer expressly asks for in order to assess the risks it assumes.   

This change seemingly shifts the burden away from insureds, who under the old Code were required to decide what information was material and of interest to insurers. The new Code places the onus on to insurers to ask the right questions at placement or renewal. 

As a result of this change, it is possible that:

• alleged non-disclosure may become more difficult to establish 
• evidence of specific enquiries by underwriters at policy inception may be required
• any shortcomings in underwriting could prejudice a misrepresentation or non-disclosure defence

That said, the new Code retains the insured’s ongoing duty to disclose material information throughout the contract term. However, it remains to be seen if what is “material” for these purposes is impacted by the scope of the insurer’s initial questions. We suspect that it will, and this will ultimately depend on how the courts apply the new provisions.  

The new Code mirrors the previous law in that the consequence of an intentional misrepresentation or non-disclosure gives the insurer the right to rescind the policy and retain the premium. Insurers must return premium for any unused period of insurance if the misrepresentation or non-disclosure was merely negligent. As under the previous law, the new Code remains silent on the impact of a misrepresentation or non-disclosure on live claims. There will continue to be uncertainty in this respect. 

Takeaway: Insurers should review underwriting processes and proposal forms to ensure that clear questions are asked in relation to matters considered material to the risk. Responses and supporting documents should properly be scrutinised, and follow-up questions asked where required. Finally, comprehensive underwriting records should be retained.   

To discuss these changes and how they will affect your organisation, please contact a member of our team. Stay tuned for the latest updates in this series.