The Dubai Civil Court recently made a significant ruling regarding a fatal traffic accident, wherein an insurance company appealed against a decision made by the Insurance Dispute Settlement Committee.
Dubai Civil Court Upholds Compensation Decision in Fatal Traffic Accident Case
The appeal sought to annul the committee's decision to grant compensation worth 200,000 dirhams to the heirs of a deceased driver involved in the accident.
The Lawsuit and Committee Decision
The insurance company initiated legal proceedings, contesting the committee's decision on grounds that the defendants were ineligible for compensation. They argued for the annulment of the decision or, alternatively, the correction of the awarded amount, labeling it as legal blood money. The lawsuit stemmed from a traffic accident where the insured driver, while driving a company-insured bus, caused severe injuries resulting in his demise. Subsequently, the heirs filed for compensation totaling two million dirhams, including material and moral damages, along with legal interest.
The committee deliberated and ordered the insurance company to pay 200,000 dirhams to the heirs, covering material and moral damages with legal interest, and legal expenses. Dissatisfied with the decision, the insurance company contested, citing errors in law application, justification, and defense rights violation, given the deceased driver's relationship with the insured company.
In response, the defendants' representative urged dismissal of the lawsuit and demanded reimbursement of legal fees. The case was referred to the Public Prosecution due to the involvement of minor children, which eventually upheld the committee's decision, leading to the court's jurisdiction.
Upon examination, the court emphasized the primacy of the insurance policy in regulating the insurer-insured relationship, including coverage and risk. It referenced legislation stipulating compensation responsibilities for injured third parties in specific vehicular contexts, such as rental vehicles or public transportation. The court upheld the committee's decision, emphasizing the deceased driver's responsibility in causing the accident while driving an insured bus.
The Dubai Civil Court's ruling reinforces the importance of insurance policies in defining liability and compensation parameters in vehicular accidents. The decision highlights the judiciary's commitment to equitable resolution, considering the circumstances and legal provisions governing such cases. By affirming the compensation decision, the court ensures just reparation for the victims while upholding legal standards and contractual obligations in insurance matters.