Court obliges an insurance firm to pay Dhs1.081m to another over vehicle accidents issues
- 25 Mar 2024
Abdulrahman Saeed, Staff Reporter
The Abu Dhabi Commercial Court of Appeal has upheld the judgement of the Court of First Instance, which ordered an insurance company to pay Dhs1,81,000 to another insurance company following occurrence of a number of accidents on different dates involving vehicles insured by the two companies.
The two parties agreed that the insurance company of the cars that caused the accidents would bear the cost of repairing the damage of the vehicles insured by the other company.
However, the company responsible for the damage failed to pay the above-mentioned amount, despite being obligated to do so.
The plaintiff, an insurance company, filed a lawsuit against the defendant, another insurance company, seeking a judgment to compel payment of Dhs1,81,000 with 12% interest from the date of filing until full payment.
The plaintiff is also requesting expedited enforcement of the judgment, as well as payment of all lawsuit expenses and attorney's fees.
The complainant company asserted that the defendant company failed to pay the claimed amount for vehicle account and clearing, despite amicable communication between the two companies, constituting a breach of their cooperation agreement.
The defendant company has been ordered by the court of first instance to pay the plaintiff company Dhs1,081,000 along with delayed interest of 1% per annum from the date of filing the lawsuit until full payment, not to exceed the principal debt.
Additionally, the defendant company is obligated to cover all expenses, while any other requests were rejected. As per the expert report, cars insured by both companies were involved in traffic accidents on different dates.
The report clearly states that the cars insured by the defendant company were responsible for some accidents, while cars insured by the plaintiff company were responsible for others.
The technical departments of both companies worked together to assess the damage to the vehicles and agreed on the cost of repairs.
