Dh1 million Ferrari and legal shock: Doctor’s claim dismissed

Dubai: What began as a routine insurance claim for a Ferrari owner in Abu Dhabi ended in an unexpected courtroom setback, leaving the doctor not only with repair woes but also liable for legal costs.

Court filings reveal that the Arab doctor, owner of a Ferrari valued at more than Dh1.34 million, filed a lawsuit earlier this year against his insurance company. He demanded that the vehicle be repaired under his policy or that he be compensated for its full insured value, Emarat Al Youm reported.

The luxury sports car had sustained significant damage in a traffic accident in January, prompting what he described as months of unanswered correspondence and stalled repair attempts.

Legal escalation

In his complaint, the doctor said he repeatedly contacted the insurer to arrange repairs under the comprehensive policy active at the time of the accident. After “failed attempts” to secure a response, he issued a legal notice demanding action, then approached the courts. He submitted copies of his policy, vehicle registration, and the notice sent to the company as evidence.

The insurance company did not appear in court despite formal notification, prompting the court to proceed in its absence—a standard procedure under UAE civil law.

Procedural error

However, during hearings, the court found that the doctor had overlooked a critical requirement of the UAE’s updated insurance regulations. Under Federal Law No. 48 of 2023, disputes arising from insurance contracts must first be submitted to the Central Bank’s Insurance Dispute Resolution Committee before a lawsuit can be filed.

The law also obligates insurance companies to respond in writing to claims and prohibits courts from accepting cases that bypass the committee.

Case dismissed

In its judgment, the court noted that while the plaintiff’s documentation was valid, the lawsuit was “procedurally premature” and could not be considered on its merits. The case was dismissed, and the doctor was ordered to pay court fees, expenses, and Dh500 in attorney costs.