When UAE insurers can reject car accident claims

Drivers of insured cars should know that there are some cases where the insurance company is obliged to compensate for damages if an accident happens.

At the same time, they should also know that there are cases where the insurance company is not required to pay compensation for damages.

The insurance company has to settle claims arising from serious vehicle accidents including a collision, explosion, theft or even loss at sea or on road during transport.

But, the insurance company is exempt from paying compensation for loss or damage of the vehicle in the following six cases, according to Mohammed Saleh Abu Zayad of Dubai Insurance Company.

* If the driver was under the influence of drugs or alcohol at the time of the accident.

* If the driver does not hold a driving licence.

* No compensation for damaged tyres if the car was not damaged.

* Damage or defect or breakage which may affect mechanical or electrical devices.
* Damage resulting from heavy load of goods or passengers above authorised limits, provided the heavy load is the main reason for the accident.

* Damage of vehicles resulting from using it for purposes other than as specified in the insurance policy.

The insurance company also need not compensate in cases of violation of traffic laws, particularly if the offence involved a felony or intentional misdemeanour, said Mohammed Saleh.

He also said the insurance company has the right to claim compensation received by the insured in the following five cases:

* If it is proved that the insurance contract was built on false information given by the insured, or that s/he concealed important facts affecting the acceptance of the risk by the insurance company or affecting the premium or conditions of insurance.

* If the vehicle is used for a purpose other than that set forth in the insurance policy, or if the car is over loaded beyond the allowed limits of width or length or height.

* If the driver - whether the insured person or someone was driving the vehicle -- was not holding a driving licence for the type of the damaged vehicle.
* If it was proved that death or injury caused by the driver of the insured car was intentional and premeditated.

* If the driver was under the influence of drugs or alcohol.
Also, the insurance company need not entertain claims filed three years after the accident.

The insurance company can make the insured person to sign an undertaking to drop his insurance claim in the following three cases:

* If he gives the vehicle to a person who does not hold a driving licence.
* If the driver leaves the scene of the accident after the police procedures.
* If the car is leased or used to teach driving.

In Appeal No. 268 of 2008, the Dubai Court of Cassation confirmed that the insured person should disclose all information of interest to the insurance company to assess risks properly.

In the same appeal, it was also confirmed that insurance compensation should be commensurate with the extent of the damage so that the insured person does not profit from taking the policy.

The Dubai Court of Cassation also confirmed the right of the insurance company to recover the compensation paid to the insured in case the driver was under the influence of alcohol or drugs at the time of the incident.

(Home page image courtesy Shutterstock)

Follow Emirates 24|7 on Google News.