UAE court orders insurer to repay Dh602,000 over 73 traffic accidents

An Abu Dhabi commercial court has ordered an insurance company to pay Dh602,296 to another insurer, ruling that the amount represents outstanding claims linked to 73 road accidents caused by drivers insured by the defendant company.

The court said the claimant insurer had settled compensation payments on behalf of its own policyholders, who were affected by accidents caused by motorists insured by the opposing company. However, the defendant had failed to reimburse those amounts through the standard recovery process between insurers.

In its lawsuit, the claimant company said it had repeatedly sought repayment but was met with delays and refusals, according to Emarat Al Youm. The plaintiff asked the court to order the defendant to pay Dh612,796, a sum that included the outstanding claims as well as consultancy expert fees, along with legal interest of 5 per cent and court costs.

The company submitted a consultancy report and related invoices in support of its case. The defendant, in turn, argued that the lawsuit should not be accepted, citing provisions of the Civil Procedures Law.

In its reasoning, the court explained that under civil law, anyone who causes harm to others is legally required to compensate for the damage, regardless of intent. It added that insurers are entitled to step into the shoes of their policyholders and recover compensation from the party responsible for the loss.

The court also noted that establishing civil liability does not require a criminal conviction. Judges, it said, are entitled to determine fault based on the evidence before them, as long as it is sufficient to form a clear conclusion.

After reviewing the documents and the expert report, the court found that 73 accidents had occurred between vehicles insured by the claimant and those insured by the defendant, with responsibility resting on the latter’s policyholders. The expert calculated the amount owed at Dh602,296, in line with recovery principles applied between insurers.