Dubai Court Rules on Insurance Compensation Following Luxury Car Accident
Court orders insurance compensation after a collision between a vintage Ford and a luxury car resulting in total loss.
A recent traffic accident in Dubai involving a vintage Ford and a luxury vehicle has led to significant legal proceedings regarding insurance compensation.
The modern luxury car was declared a total loss after the collision caused by the older model.
The Dubai Civil Court directed the insurance company of the responsible vehicle to pay a total of 564,285 dirhams after deducting the salvage value of the wrecked luxury car.
The insurance value of the damaged vehicle was estimated at one million dirhams.
The insurance company filed a lawsuit seeking compensation of 617,590 dirhams from the insurance entity responsible for the vintage car, along with legal interest from the date of the claim until payment is completed.
The plaintiff, which insured the luxury vehicle, argued that it suffered extensive damage due to the accident caused by the defendant's insured vehicle.
According to the claim, the plaintiff had compensated the owner of the damaged luxury vehicle with 902,784 dirhams after its assessment as a total loss, while the salvage value of the wreckage was reported at 285,714 dirhams.
It was noted that the parties could not reach an out-of-court settlement.
The court appointed an expert committee to analyze the incident, confirming the contractual relationships and responsibilities of the involved parties.
The experts concluded that the insured vehicle from the plaintiff company was involved in the accident caused by the defendant's insured vehicle.
The resulting damage to the luxury vehicle was assessed at a value of one million dirhams, with a requirement for agency repairs.
The evidence presented by the experts indicated that the vehicle responsible for the accident was valued at 36,000 dirhams.
Both vehicles involved in the accident were covered under comprehensive insurance, protecting against loss, damage, and civil liability.
The expert analysis stated that the damaged luxury vehicle had sustained extensive front-end and side damage, leading to its classification as a total loss.
The market value at the time of the accident was evaluated at approximately 850,000 dirhams, reflecting its luxury status in the local market.
Subsequently, the wreck was sold to a salvage company for 285,714 dirhams.
The defendant's company contested the valuation presented by the experts, claiming it was exaggerated and requested dismissal of the case or a secondary expert evaluation.
In its ruling, the court emphasized the obligations of the insurance company in the event of an accident, including the requirement to cover losses or repairs unless otherwise stipulated in the insurance policy.
The ruling established that when a vehicle is deemed irreparable or if repair costs exceed 50% of its value prior to the accident, the insured value forms the basis for calculating compensation, minus a depreciation rate of 20% of that value.
Ultimately, the court recognized that the plaintiff had compensated the owner of the damaged vehicle and retained the wreckage, leading to a final order of compensation against the defendant's company amounting to 564,285 dirhams, with a legal interest rate of 5% from the date the ruling became final.
The modern luxury car was declared a total loss after the collision caused by the older model.
The Dubai Civil Court directed the insurance company of the responsible vehicle to pay a total of 564,285 dirhams after deducting the salvage value of the wrecked luxury car.
The insurance value of the damaged vehicle was estimated at one million dirhams.
The insurance company filed a lawsuit seeking compensation of 617,590 dirhams from the insurance entity responsible for the vintage car, along with legal interest from the date of the claim until payment is completed.
The plaintiff, which insured the luxury vehicle, argued that it suffered extensive damage due to the accident caused by the defendant's insured vehicle.
According to the claim, the plaintiff had compensated the owner of the damaged luxury vehicle with 902,784 dirhams after its assessment as a total loss, while the salvage value of the wreckage was reported at 285,714 dirhams.
It was noted that the parties could not reach an out-of-court settlement.
The court appointed an expert committee to analyze the incident, confirming the contractual relationships and responsibilities of the involved parties.
The experts concluded that the insured vehicle from the plaintiff company was involved in the accident caused by the defendant's insured vehicle.
The resulting damage to the luxury vehicle was assessed at a value of one million dirhams, with a requirement for agency repairs.
The evidence presented by the experts indicated that the vehicle responsible for the accident was valued at 36,000 dirhams.
Both vehicles involved in the accident were covered under comprehensive insurance, protecting against loss, damage, and civil liability.
The expert analysis stated that the damaged luxury vehicle had sustained extensive front-end and side damage, leading to its classification as a total loss.
The market value at the time of the accident was evaluated at approximately 850,000 dirhams, reflecting its luxury status in the local market.
Subsequently, the wreck was sold to a salvage company for 285,714 dirhams.
The defendant's company contested the valuation presented by the experts, claiming it was exaggerated and requested dismissal of the case or a secondary expert evaluation.
In its ruling, the court emphasized the obligations of the insurance company in the event of an accident, including the requirement to cover losses or repairs unless otherwise stipulated in the insurance policy.
The ruling established that when a vehicle is deemed irreparable or if repair costs exceed 50% of its value prior to the accident, the insured value forms the basis for calculating compensation, minus a depreciation rate of 20% of that value.
Ultimately, the court recognized that the plaintiff had compensated the owner of the damaged vehicle and retained the wreckage, leading to a final order of compensation against the defendant's company amounting to 564,285 dirhams, with a legal interest rate of 5% from the date the ruling became final.