A Dubai Civil Court has ordered an insurance company to pay Dh93,450 in compensation, in addition to 5 per cent legal interest until full settlement, over a traffic accident that resulted in extensive damage to a vehicle.
The case stemmed from a dispute between two insurance companies following a collision in which fault was attributed to a vehicle insured by the defendant. The claimant’s insurer initially shouldered the repair expenses, basing the claim on estimates from approved repair centers and selecting the lowest quotation, inclusive of VAT, amounting to Dh93,450.
After efforts to reach an amicable settlement failed, the case was filed electronically with the court. Submitted documents included the police accident report, insurance policies, and technical inspection findings. The defendant insurer challenged liability and requested the appointment of an expert.
A court-appointed insurance expert confirmed the existence of a valid insurance relationship between the parties and concluded that the insurer of the at-fault vehicle was liable for the damages.
The expert report cited multiple front-end damages requiring parts replacement, body repairs, and repainting, noting that the repair costs were reasonable, proportionate, and technically sound.
In its ruling, the court applied UAE civil law provisions and established judicial principles on insurance contracts and subrogation.
These allow an insurer that has paid compensation to recover the amount from the party responsible for the damage, up to the sum paid. The court ultimately upheld the defendant insurer’s obligation to reimburse the full repair costs, along with legal interest and court fees.
