The concept of good faith is pervasive in all contracts of
insurance and reinsurance in the United Arab Emirates. Whilst in
Common Law jurisdictions, such as the UK and US, the doctrine of
utmost good faith has been devised and developed through reported
decisions of the courts, the concept is codified in the UAE Civil
Code. Such codification means that there is inherently less
guidance than in Common Law jurisdictions, but there are aspects of
the doctrine that differ to the Common Law position.
The UAE Civil Code
Article 246 of the Civil Code provides that all contracts (and
not just insurance and reinsurance contracts) must be performed
"in a manner consistent with the requirements of good
faith." However, Article 246 also expands on this concept to
say that duty of good faith is not limited to obligations expressly
contained in the contract between the parties, but also extends to
obligations connected to such contracts by virtue of law, custom
and the nature
