Dubai court orders insurer to pay Dh93,450 in accident dispute

Dubai: A Dubai civil court has ruled in favour of an insurance claim worth Dh93,450, ordering payment of the amount along with five per cent annual legal interest until full settlement, in a dispute between two insurance companies stemming from a traffic accident that caused extensive vehicle damage.

The case arose from a traffic collision in which responsibility was established against a vehicle insured by one company, resulting in significant material damage to another car covered by a different insurer.

The insurer of the damaged vehicle fulfilled its contractual obligations by covering the repair costs after referring the car to approved repair centres and adopting the lowest quoted cost, inclusive of value-added tax. The total payout amounted to Dh93,450.

According to Al Khaleej newspaper, attempts to reach an amicable settlement between the two insurers were unsuccessful, prompting the affected insurer to file a case before the competent court.

The case was processed electronically through the case management office, with the court reviewing police reports, insurance policies and technical inspection records. The defendant insurer disputed liability and requested the appointment of a technical expert.

The court subsequently appointed an insurance expert specialising in motor accidents to examine the case and assess the disputed damages.

The expert confirmed the existence of a valid insurance relationship between the parties and concluded that the insurer covering the vehicle at fault bore responsibility for the damages.

The report detailed multiple damages to the front sections of the affected vehicle, requiring the replacement of several parts, along with panel beating and repainting work. The estimated repair costs were deemed proportionate and technically justified, confirming that the vehicle was repairable under professional standards.

In its ruling, the court relied on established principles under the UAE Civil Transactions Law and Court of Cassation precedents on insurance contracts and legal and contractual subrogation. These principles allow an insurer that has paid compensation to recover the amount from the party responsible for the damage or its insurer, within the limits of the amount paid.

Finding the expert report technically and legally sound, and in the absence of contrary evidence, the court ordered the defendant insurer to pay Dh93,450, together with five per cent legal interest per annum until full payment is made.