Dubai Civil Court Orders Insurer to Pay Dh93,450 in Traffic Accident Dispute

A Dubai civil court has ordered an insurance company to pay Dh93,450, along with five per cent annual legal interest until full settlement, in a dispute between two insurers arising from a traffic accident that caused extensive damage to a vehicle.

The case stemmed from a road collision in which fault was established against a vehicle insured by the defendant company, resulting in substantial material damage to another car covered by a different insurer.

After the accident, the insurer of the damaged vehicle met its contractual obligations by referring the car to approved repair centres and approving the lowest repair estimate, inclusive of value-added tax. The total repair cost paid by the insurer amounted to Dh93,450.

Efforts to resolve the matter amicably between the two insurers failed, prompting the insurer that had settled the repair bill to approach the competent court to recover the amount.

The case was handled electronically through the case management office. The court examined police records, insurance policies and technical inspection reports. The defendant insurer denied liability and sought the appointment of a technical expert.

Following a detailed review, the court-appointed expert confirmed the existence of a valid insurance relationship and concluded that the insurer covering the at-fault vehicle was responsible for the damages.

The expert report identified multiple damages to the front section of the affected vehicle, necessitating the replacement of several parts, in addition to panel beating and repainting. The repair costs were found to be proportionate, technically justified and in line with professional repair standards, confirming that the vehicle was repairable.

In its judgment, the court relied on established principles under the UAE Civil Transactions Law and precedents of the Court of Cassation relating to insurance contracts and legal and contractual subrogation. These principles entitle 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 sum paid.

Accepting the expert findings as technically and legally sound, and noting the absence of any evidence to the contrary, the court ruled in favour of the claimant insurer and ordered the defendant to pay Dh93,450, together with five per cent legal interest per year until full payment is made.

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