UAE: If someone hits my car while parked, will I have to pay my insurance company an ‘excess charge’? – information

In the UAE, all vehicles are required to have at least third party insurance, if not comprehensive insurance

question: Someone hit me while my car was parked. I parked legally in the right spot. The insurance company asked me to pay what it called an “excess charge”. Is this legal?

answer: Based on your query, it is assumed that the vehicle insurance policy you purchase for your car is third party liability coverage, not comprehensive coverage.

In the UAE, all vehicles are required to have at least third-party insurance. This is in line with the provisions of Article 4, Paragraph 1 of Decision No. 25 of the China Insurance Regulatory Bureau in 2016, which states that “insurers shall, in accordance with the requirements of insurance companies, purchase third-party liability insurance for all motor vehicles licensed in the state. Related parties.”

Assuming that your car is insured with third-party liability insurance, the insurance company requires you to bear additional insurance costs (premiums) based on the above legal provisions. So, since your car was damaged by some vehicle while it was parked in a parking lot, coverage insurance should cover such damage in this case.

This is in line with Clause 29(b) of the standard conditions associated with the Uniform Motor Vehicle Insurance Policy for Loss and Damage, which states, “The Company and the insured may agree to use riders in exchange for an additional premium and to the extent The Company shall insure against other damages not covered by this Policy, in particular “covering damages or risks occurring off the road”.

However, if your car has comprehensive insurance that covers damage from off-road accidents, then you can complain to the insurance company with the UAE Insurance Authority and settle the matter amicably with the insurance company.

If the insurance company does not agree to a settlement, then you can approach the UAE courts which have jurisdiction to hear the matters referred to in Clause 36 of the Standard Conditions in relation to the Uniform Motor Vehicle Loss and Damage Policy, which states: “The courts of the United Arab Emirates Competent to adjudicate any dispute arising out of an insurance policy.”

Ashish Mehta is the founder and managing partner of Ashish Mehta & Associates. He is qualified to practice in Dubai, UK and India. Further information on his company is available at: www.amalawyers.com. Readers can email their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.