Abu Dhabi Court rules double compensation barred in insurance dispute

Abu Dhabi: The Abu Dhabi Court of Cassation has upheld a lower court ruling denying a woman’s attempt to claim Dh505,000 in compensation from an insurance company, reaffirming that a claimant cannot receive two payouts for the same incident, 24.ae news portal reported. 

The woman had sought compensation for damage to her car and two electric wheelchairs used by her husband and mother, both people of determination, after a traffic accident that left the vehicle and mobility devices severely damaged.

She argued that the insurer of the vehicle responsible for the collision should cover the repair costs, including agency repairs, automatic door fixes, replacement of the electric wheelchairs, and expenses for hiring a caregiver. She also sought damages for emotional and material harm.

Her claim was initially rejected by the Insurance Dispute Settlement and Resolution Committee. She appealed the decision, but the court of first instance upheld the rejection. She then escalated the case to the Court of Cassation, which has now dismissed her final appeal.

In its ruling, the court emphasized that “it is not permissible to collect two compensations for the same harmful act,” noting that the claimant had already received compensation from her own comprehensive insurance provider.

Records showed she had previously been awarded Dh107,000 for repairs to the car and the electric wheelchairs, in addition to Dh126,000 received by her legal representative for damages related to the wheelchairs.

Given these prior payments, the court held that she was not entitled to seek a second compensation package for the same losses, underscoring a core principle of insurance law: a victim may not be paid twice for identical damages arising from a single incident.