Insuring firm compelled to dispense Dh83,035 due to dispute over Range Rover accident in Dubai court.
Dubai Civil Court Orders Insurance Company to Pay Dh83,035 in Range Rover Accident Dispute
In a recent ruling, a Dubai civil court has ordered an insurance company to pay Dh83,035 to another insurer in a dispute over a Range Rover that was damaged in a traffic accident. The court's ruling did not disclose the identities of the insurance companies involved in the dispute.
The dispute arose from a claim made by an insurance company seeking repayment of Dh83,000 plus legal interest from the insurer of the vehicle deemed responsible for the crash. The plaintiff's client's Range Rover suffered severe damage in the accident, and a police report confirmed the client bore no responsibility.
Under the owner's policy, the plaintiff assessed the vehicle's market value, deducted depreciation, and paid the client Dh124,535 in compensation. However, the defendant insurer contested the claim, arguing that the vehicle's fair market value was only Dh75,000.
The court-appointed expert concluded that the damage to the Range Rover made it a total loss, affecting the chassis significantly. The expert's findings were supported by expert valuation reports and evidence such as invoices or purchase documents. The defendant insurer also requested the appointment of an expert to assess the damage.
The damaged vehicle was later sold at auction for Dh41,500. The court obliged the defendant insurer to pay Dh83,035 to the plaintiff insurer, in accordance with the UAE's unified motor vehicle insurance policy terms. The court found that the plaintiff had lawfully compensated its policyholder and was entitled to recover the balance from the defendant.
The process of determining compensation for a total loss of a vehicle in a traffic accident in Dubai typically involves submitting expert appraisal reports indicating the car’s pre-accident market value, repair estimates or confirmation that repair is not feasible (total loss), proof of ownership and purchase price, and any invoices or contracts related to the vehicle. The court relies on such evidence to quantify the amount of compensation to cover the total loss. The compensation aims to cover replacement costs equivalent to the vehicle’s value before the accident, not speculative or punitive damages.
If further detail is needed on procedural steps or legal standards under UAE law, consulting a Dubai traffic accident attorney or official court resources would be advisable. The general legal principle for material damage in civil traffic accident claims aligns with internationally common practice of compensating the actual loss as proven by credible documentation. No contradictory or highly specific Dubai civil court guidelines were found in the results. The dispute was reported by Emarat Al Youm Arabic daily.
In light of the dispute, the insurance industry and Dubai's finance sector may need to reconsider their approaches to traffic accident claims, especially concerning the assessment of vehicle's market value, as the court's ruling demonstrates a focus on fair compensation based on actual loss. Furthermore, the transportation industry could potentially see changes in the way total loss accidents are evaluated and compensated, following the court's interpretation of the UAE's unified motor vehicle insurance policy terms.
