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UAE: Do I have to pay 'excess charge' to insurance company if someone hits my car while parked?

In the Emirates, all vehicles need to have at least third-party insurance coverage, if not a comprehensive one

Question: Someone hit my car while it was parked. I parked in a proper slot legally. The insurance company is asking me to pay something called an 'excess charge'. Is this legal?

Answer: Pursuant to your query, it is assumed that the vehicle insurance policy which you have obtained for your car is a third-party liability and not a comprehensive one.

In the UAE, all vehicles need to have at least third-party insurance coverage. This is in accordance with Article 4(1) of the Insurance Authority Decision No 25 of 2016, which states, “The Insurance Company should issue a third party liability insurance policy on all motor vehicles licensed in the State when it is so requested by the related parties."

Based on the aforementioned provisions of law, it is assumed that your insurance company is calling upon you to bear additional charges (premium) on your insurance as your car is covered by third-party liability insurance. Therefore, as your car is damaged by some vehicle while your car was parked in a parking area, then in such cases insurance coverage insurance cover should cover such damages.

This is in accordance with clause 29(b) of the Standard Conditions related to Unified Motor Vehicle Insurance Policy Against Loss and Damage, which states, “The Company and the Insured may agree, using riders in return for an additional premium and within the scope of the terms and conditions herein, that the Company shall insure against the other damages not provided for in this Policy in particular “coverage of the damages or risks which occur outside the roads”.

However, if your car is covered by comprehensive insurance cover and it covers insurance for damages caused for incidents outside the roads, then you may file a complaint against the insurance company with the Insurance Authority of UAE and settle the matter amicably with the insurance company.

If the insurance company does not agree to settle, then you may approach a court in the UAE which has jurisdiction to hear the matter as mentioned in Clause 36 of the Standard Conditions related to Unified Motor Vehicle Insurance Policy Against Loss and Damage, which states, “The courts of the United Arab Emirates shall be competent to determine any disputes arising from the insurance policy.”

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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