Insurance Authority Organizes an Introductory Seminar for Members of the Judiciary on the Decennial Liability
Abu Dhabi, 18 May 2016
The Insurance Authority (IA) organized the 3rd seminar for members of the judiciary in Abu Dhabi under the title "Decennial Liability for Engineers and Building Contractors and Other Fixed Installations and Liability Insurance (the French experience and UAE legal regulation)" at the headquarters of Abu Dhabi Judicial Academy.
The seminar aims to enhance cognitive awareness of the insurance principles, modern laws and insurance developments in the world, and ultimately to facilitate the function of members of the judiciary to avoid insurance-related financial issues.
The seminar, which was part of the specialized seminars joint program between the Insurance Authority and members of the judiciary, was attended by a number of judges, legal advisors and prosecutors as well as a number of employees in the IA and the Judicial Department of Abu Dhabi.
The IA experts delivered detailed presentations during the seminar to elaborate the status of various civil legislation provisions concerning the liability of the architect and the contractor for destruction affecting the buildings and other fixed installations and the defects that amount to a certain degree of risk, within a specific period of up to ten years after completion and handover according to several legislations.
The experts stressed that the main objective of these provisions is to urge engineers and contractors to construct buildings and other fixed installations that are not collapsible and not vulnerable to risky defects during a specified period to be considered a test period for the durability and robustness of the construction.
The experts reviewed the principles of UAE law and French law concerning the decennial liability of engineers and contractors of buildings and fixed installations, pointing out the new provisions and principles that have been introduced into the law.
The experts elaborated that the UAE legislator addressed the subject of decennial liability according to the old French concept. Article (880) that if the subject of the contracting contract is to construct buildings or other fixed installations for which the engineer develops the design to be executed by the contractor under the engineer’s supervision, both the engineer and the contractor shall be jointly liable for the compensation to the client for any whole or partial collapse in the buildings or installations they have constructed and for all defects that threaten the durability and safety of construction within ten years if the contract does not stipulate for a longer period. All the foregoing is true unless the contracting parties want the installations to remain for less than ten years.
The legislator also maintains the commitment to the said compensation even if the defect or collapse was due to a defect in the land itself or if the client has accepted that the construction of the defective buildings or installations. The period of ten years shall start from the time of handover of the work.
At the seminar conclusion, in-depth legal discussions among the participants took place about the details of the decennial liability of building engineers and contractors in addition to the legal aspects of the insurance operations. These discussions contributed to the enrichment of the seminar and enhancing knowledge and legal awareness.
The participants praised the role of the IA in promoting knowledge and cultural awareness of the insurance concept and improving the performance of the insurance sector as well as its permanent keenness to boost the local market regulation by issuing insurance legislation, modern and sophisticated regulations in this regard.