Dubai court orders insurer to pay Dh1.26 million after luxury car crash

The Dubai Civil Court has ordered an insurance company to pay Dh1.26 million in compensation to another insurer after refusing to settle a claim for a Bentley that was destroyed in a traffic accident. The defendant company had argued that the crash was staged, but the court dismissed the claim, ruling that the evidence supported a legitimate collision.

Court documents show that the accident occurred when a Mercedes G55 rammed into the back of a Bentley after failing to maintain a safe distance, leaving the Bentley wrecked. The insurer of the damaged vehicle said it had already paid the car’s owner Dh1.106 million in compensation and later sold the wreck for Dh90,000, bringing the net loss to Dh1.26 million.

The plaintiff insurer filed a civil lawsuit demanding reimbursement from the defendant company, which covered the Mercedes, along with 9 per cent annual interest. It argued that under UAE insurance law, an insurer that pays compensation is entitled to seek recovery from the party responsible for the damage or their own insurer.

The defendant countered by claiming the accident was “fabricated”. They also alleged that the Bentley’s market value did not exceed Dh480,000. However, after reviewing the case files, the court found that the Mercedes was insured by the defendant and the plaintiff had lawfully compensated its client.

The court ruled that the plaintiff was therefore entitled to recover the full compensation amount and ordered the defendant to pay Dh1.26 million plus 5 per cent annual interest from the date of the claim until full settlement.