Court Orders Insurer to Repay Dh602,000 Over 73 Road Accidents

An Abu Dhabi commercial court has ordered an insurance company to pay Dh602,296 to another insurer, finding that the sum represents outstanding claims arising from 73 traffic accidents caused by drivers insured by the defendant.

The court ruled that the claimant insurer had paid compensation to its own policyholders who were involved in accidents caused by motorists covered by the opposing company. However, the defendant insurer failed to reimburse those amounts through the standard inter-insurer recovery mechanism.

In its lawsuit, the claimant said it had made repeated demands for repayment but faced delays and refusals. It sought Dh612,796, covering the unpaid claims, consultancy expert fees, legal interest of 5 per cent and court costs.

To support its claim, the insurer submitted a consultancy report and related invoices. The defendant argued that the case should not be admitted, relying on provisions of the Civil Procedures Law.

In its reasoning, the court stated that under civil law, any party that causes harm is obliged to compensate for the damage, regardless of intent. It added that insurers are legally entitled to step into the place of their policyholders to recover compensation from the party responsible for the loss.

The court further clarified that civil liability does not depend on a criminal conviction, noting that judges may determine fault based on the evidence presented, provided it is sufficient to reach a clear conclusion.

After examining the records 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 liability resting on the latter’s policyholders. The expert assessed the recoverable amount at Dh602,296, in line with established recovery principles between insurers.

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