Dubai Court Orders Insurer to Repay Dh83,035 to Rival Company in Total Loss Range Rover Case

A Dubai civil court has ordered an insurance company to pay Dh83,035 to another insurer following a dispute over compensation for a Range Rover that was declared a total loss after a traffic accident.

 

The case began when the plaintiff, an insurance provider, sued the insurer of the vehicle found responsible for the crash, demanding repayment of Dh83,035 plus legal interest. The plaintiff said its policyholder’s Range Rover sustained severe damage in the accident, with a police report confirming the policyholder was not at fault.

 

Under the owner’s comprehensive policy, the plaintiff valued the vehicle, applied depreciation, and paid its customer Dh124,535 in compensation. The wrecked car was later sold at auction for Dh41,500, leaving Dh83,035 to be claimed from the defendant insurer.

 

The defendant disputed the claim, arguing the market value of the vehicle was only Dh75,000 and that any settlement should reflect this amount after deducting salvage and depreciation. They also sought an expert evaluation.

 

A court-appointed expert concluded the damage had caused a total loss, significantly compromising the vehicle’s chassis. The court ruled that the plaintiff had settled the claim in accordance with policy terms and was entitled to recover the remaining amount from the at-fault driver’s insurer.

The judgment aligns with the UAE’s Unified Motor Vehicle Insurance Policy (issued under UAE Cabinet Resolution No. (25) of 2016), which governs compensation in traffic accidents. Article 14 of the policy stipulates that in the case of total loss, the insurer must compensate the policyholder based on the vehicle’s fair market value at the time of the accident, less depreciation, and may recover the amount from the insurer of the party at fault under subrogation rights. The ruling also reflects provisions of Federal Law No. 6 of 2007 on the Establishment of the Insurance Authority, which regulate insurers’ obligations in claim settlements.

 

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