A General Indemnity Agreement is a fundamental risk management document used in the United Arab Emirates to establish and govern indemnification obligations between parties. This document is typically employed when one party needs to protect another against potential losses, liabilities, or damages arising from specified events or circumstances. The agreement must comply with UAE Civil Code (Federal Law No. 5 of 1985) and Sharia principles, making it distinct from similar agreements in other jurisdictions. It's commonly used in construction projects, financial transactions, and commercial arrangements where risk allocation is crucial. The document includes detailed provisions on claim procedures, limitations, exclusions, and enforcement mechanisms, all tailored to meet UAE legal requirements and business practices.
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1. Parties: Identification of the Indemnitor and Indemnitee with full legal names and addresses
2. Background: Context of the agreement, relationship between parties, and purpose of the indemnification
3. Definitions: Key terms used throughout the agreement, including 'Indemnified Losses', 'Claims', 'Indemnification Period'
4. Scope of Indemnification: Detailed description of what losses, damages, and claims are covered by the indemnity
5. Indemnification Process: Procedures for making claims, notice requirements, and timing of indemnification payments
6. Defense of Claims: Process for defending third-party claims, including control of defense and settlement procedures
7. Limitations and Exclusions: Specific exclusions from indemnity coverage and any caps on liability
8. Duration: Term of the indemnity obligation and survival provisions
9. Representations and Warranties: Basic representations about authority to enter agreement and validity of obligations
10. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes
11. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Multiple Indemnitors: Required when there are multiple parties providing indemnification, addressing joint and several liability
2. Cross-Border Provisions: Needed for international parties, addressing currency, language, and cross-border enforcement
3. Insurance Requirements: Specifies insurance obligations of the Indemnitor to support indemnification obligations
4. Security Provisions: When additional security (like bank guarantees) is required to secure the indemnity obligations
5. Dispute Resolution: Detailed ADR procedures if parties want specific resolution mechanisms beyond court jurisdiction
6. Shariah Compliance: Specific provisions ensuring compliance with Islamic law principles where relevant
1. Schedule A - Specified Losses: Detailed list of specific losses or types of claims covered by the indemnity
2. Schedule B - Claim Procedures: Detailed procedures and forms for making indemnification claims
3. Schedule C - Contact Information: Detailed contact information for notices and claim submissions
4. Schedule D - Excluded Claims: Specific enumeration of excluded claims or losses
5. Appendix 1 - Form of Claim Notice: Standard form for submitting indemnification claims
6. Appendix 2 - Required Documentation: List of required supporting documents for claims
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