Dubai Court Orders Driver, Restaurant to Repay Insurer Dh1.758 Million

The Dubai Civil Court has ordered a driver and the restaurant that owned the vehicle to jointly repay an insurance company Dh1,758,000 after the insurer compensated a man seriously injured in an accident involving the driver.

The court also ordered 5% legal interest on the amount from the date the civil lawsuit was filed until full payment, in addition to court fees, expenses and legal costs.

The case followed a ruling by the Dubai Misdemeanours Court, which found the driver guilty of driving under the influence of alcohol and causing an accident that resulted in serious injuries to an Asian national.

The criminal court sentenced him to one month in prison, fined him Dh10,000 and suspended his driving licence for six months. The ruling became final after it was not appealed.

The Insurance Disputes Settlement Committee had initially ordered the vehicle's insurance company to compensate the injured man. The compensation was later increased by the Court of Appeal to Dh1,785,000, a decision subsequently upheld by the Court of Cassation.

The insurance company ultimately paid Dh1,758,602.50, including compensation, interest and related expenses awarded under the judgment.

Following the payment, the insurer filed a civil claim against the driver and the vehicle owner, seeking reimbursement of the amount it had paid.

The insurer relied on the Unified Vehicle Insurance Policy, which allows an insurance company to seek recourse against the driver and insured party when an accident occurs while the vehicle is being driven under the influence of alcohol.

The Civil Court found that the driver's liability had already been conclusively established by the criminal judgment. As the ruling had become final, the issue could not be reconsidered in the civil proceedings.

The court also found that the insurance company had provided sufficient evidence that it had paid the compensation awarded to the injured party, giving it the right to seek reimbursement.

The vehicle was owned by a restaurant where the driver worked. The court therefore held the restaurant jointly liable with the driver for the amount, applying the legal principles governing an employer's liability for the actions of its employee.

The court ordered the driver and the restaurant to jointly pay the insurance company Dh1,758,000, together with 5% legal interest from the date the lawsuit was filed until full settlement.

The court also ordered them to bear the court fees, expenses and attorney's fees.

However, it rejected the insurance company's request to impose a travel ban on the driver over unpaid court fees.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.