UAE: Can your insurer refuse to pay if your car catches fire? Ask the Law

Question: One month ago, while driving on the highway, my car caught fire by itself. The insurance company refused to pay compensation on the basis that the fire was caused by my not changing the engine oil according to their report, even though I had my car serviced at their service centre a month prior to the accident.

My question: Is their allegation correct? What procedure should I follow to get compensation? Please advise.

Answer: The insurance company is obligated to pay the value of the vehicle if the comprehensive insurance coverage includes fire damage.

This case is not excluded in the insurance policy, unless the loss or damage occurs when the Motor Vehicle is being driven under the influence of narcotics, alcohol or drugs that undermine the driver's ability to control the Motor Vehicle.

Pursuant to section 2 of the Unified Motor Vehicle Insurance Policy Against Loss and Damage, the insurance company shall compensate the Insured for loss or damage that occurs from an external fire or explosion, spontaneous combustion, or lightning.

The Company shall compensate the Insured for loss or damage that occurs to the Insured Motor Vehicle and its accessories in the following cases: b. If loss or damage arises from an external fire or explosion, spontaneous combustion, or lightning.

The compensation amount is calculated based on the value of the vehicle, taking into account the deduction of any amounts due, such as the agreed-upon deductible amount.

You have to file your case before the Insurance Committee, and the Committee shall decide on the matter.