Dubai Court: Insurer must pay Dh93,450 for traffic accident damages

Dubai A Dubai Civil Court has ordered an insurance company to pay Dh93,450, plus 5 per cent legal interest until full settlement, following a traffic accident that caused significant damage to a vehicle.

The dispute arose between two insurance companies after a collision in which liability was established on a vehicle insured by the defendant company. The claimant’s insurer initially covered the repair costs, relying on estimates from approved repair centres and selecting the lowest quotation, including VAT, to reach the total claim of Dh93,450.

When the parties could not reach an amicable settlement, the matter was filed in court and handled electronically. Court documents included the police report, insurance policies, and technical inspection reports. The defendant contested liability and requested an expert assessment.

An appointed insurance expert confirmed the contractual insurance relationship between the parties and found that the insurer of the at-fault vehicle was responsible for the damages. The report detailed multiple front-end damages, requiring replacement of parts, bodywork, and painting, with repair costs proportionate to the damage and technically feasible.

The court relied on UAE civil law and established case law on insurance contracts and subrogation, which allows an insurer who fulfils its obligations to recover costs from the party responsible for the damage, up to the amount paid. The ruling confirms the defendant insurer’s liability to reimburse the claimant for the full repair costs, interest, and legal fees.