Insurance firm denies motorist's claims after car accident in UAE

Question: Three months ago, I was involved in a car accident that left my vehicle broken and unrepairable, according to the police and relevant authorities’ report. However, the insurance company is currently refusing to pay the value of the car on the pretext that the car licence has expired.

Is it permissible for the insurance company to refuse compensation on these grounds, even though the insurance policy expired one month after the accident? What is the appropriate action for me to take?

Answer: The insurance company has to compensate you in case you renew the licence within 30 days from the date of the accident, which is the same time of the expiry date of the insurance policy.

Chapter 4, Clause 6 of the Unified Motor Vehicle Insurance Policy against Loss and Damage confirms that if the driver fails to renew licence within 30 days from the date of the accident, the insurance company will have the right not to compensate.

The company will not pay any compensation for the following reasons: Damage to the motor vehicle from accidents which occur when the vehicle is operated by a driver who is not licensed to drive according to the traffic laws or without obtaining a driving licence for the kind of the vehicle or if the driver hold an expired driver’s licence and fails to renew it within 30 days from the date of the accident, or the licence granted has been suspended by the court or competent authorities or according to the traffic tegulations.

This exclusion shall not apply in case the motor vehicle is intended for rental, as long as the leasing contract is concluded with a person who holds a valid driving licence.

You are entitled to raise a complaint with the Insurance Committee claiming the insurance value and any damages you suffered. The committee shall study and decide on the insurance disputes referred to it according to Articles 14 and 15 of the Insurance Authority Board Resolution No. (33) Of 2019 concerning the Regulation of the Committees for the Settlement and Resolution of Insurance Disputes.