UAE: Can insurance refuse car payout citing accident was linked to racing use?

Question: Four months ago, I had an accident that caused total damage to my car. I asked the insurance company to pay the value of the vehicle as specified in my car insurance policy. However, the insurance company refused, citing that the car had been used in a speed test or race, which violates the insurance policy, even though I was not driving it in the way they described. My question: Am I eligible to receive the value of the car from the insurance company in such a case? Please advise.

Answer: As a general rule, using the car in a speed test or race is a valid reason for the insurance company to refuse payment of the insurance value agreed upon in your policy. If the insurance company proves that your car was used in a speed race, then you will not be eligible for the value of the vehicle.

According to Chapter Four/5 (Exclusions) of the Unified Motor Vehicle Insurance Policy against Loss and Damage, the company will not pay any compensation for the following: (5.) If it is proven that the motor vehicle has been used or utilised in a speed race or test, provided that this is shown to be the proximate cause of the accident.

The burden of proof rests on you, according to Article 1 of the Evidence Law. You need to consult an expert to examine the situation and prove that the car was not used in a speed race that caused the accident, contrary to what the insurance company claims and is using as a reason to deny the insurance payout.

The court will make a decision based on the documents and evidence provided by both parties.