Dubai car rental agency to get Dh115,000 compensation
Thursday, 05 23 2019, Category: Insurance and Reinsurance, Country: U.A.E
The Dubai Court of Cassation has ruled that an insurance company should pay up Dh115,000 worth of compensations for a traffic accident involving a vehicle owned by a car rental agency.
The case dates back to July 14, 2017 when the rental agency had one of its cars involved in a traffic accident. The car was insured under a police contract signed with the other party. Due to the accident, the car's registration was cancelled at the traffic department because it got badly damaged and became technically unfit.
The plaintiff (the rental agency) claimed in its lawsuit Dh150,000 from the insurance company and the driver. But the company would not pay the sum that was part of the terms of the contract, which gave way to the present lawsuit.
The Court of First Instance ordered the insurance company and the female driver to pay Dh115,000 to the agency, which was appealed by the insurance firm.
However, its appeal was rejected by the Court of Appeals. The court also reversed the primary ruling.
Since the amount, subject of the claim, is less than Dh500,000, the agency filed a request to the Attorney-General to contest the ruling at the Court of Cassation.
The request was examined by Tarek Ahmed Al Naqbi, chief prosecutor at the civil prosecution. It was then presented to Dubai Attorney- General Eissam Issa Al Humaidan who gave his instructions to approve the request in favour of the law, pursuant to Article 174 of the Civil Procedures Law.
The approval to challenge the appellate court order came after it was found that the rental office, which is a licensed business, had signed an insurance contract with the other party (the insurance company), which covers loss and damage incidents as well as civil liability.
Source: Khaleej Times