Limitation Period In Insurance Claims

Introduction

A recent magistrate court decision in Muhamad Abu Dachal v Menora Insurance Co Ltd (CC 3737-04-14) rejected a claim filed after the limitation period prescribed by the Insurance Contract Law 1981. The plaintiff's appeal was rejected by the district court and his motion to file an appeal to the Supreme Court was denied on January 24 2016 for procedural reasons.

In Muhamad, the plaintiff raised an important issue relating to the liability of insurers to pay insurance to an insured after the limitation period had expired, since he argued that the grounds for filing the claim were not based solely on the Insurance Contract Law, but also on breach of the Tort Law, unjust enrichment and contractual grounds, which are not subject to the three-year limitation period under the Insurance Contract Law.