Insurance Debt Recovery

Over a period, several vehicles insured by our Client took part in road accidents and the Client had the pay the insurers approximately AED 8...

APRIL 6, 2020
Over a period, several vehicles insured by our Client took part in road accidents and the Client had to pay the insurers approximately AED 800,000/- to indemnify the loss as the third party was responsible for the accidents

Background:

FTD Partners registered a case on behalf of its Client, a UAE based Insurance Company against another insurance company by clubbing several claims of the same nature worth approximately AED 800,000/-.

Legal Issues

FTD Partner's Client sold many vehicle insurance covers to individuals and companies. Over a period, several vehicles insured by our Client took part in road accidents and the Client had to pay the insurers approximately AED 800,000/- to indemnify the loss as the third party was responsible for the accidents. After our Client settled the payment to its insurers, our client was given the subrogated right to recover the money from the Third Party. The probe into accidents revealed that all the third parties are insured of another UAE based insurance company and our Client under the UAE law had the right to be indemnified by that insurance company. Our Client approached the other party several times which in some cases refuse to pay our Client anything while in others agreed to pay the minimal amount without citing any convincing reason and did not pay our Client anything at all in any cas

Legal Proceedings

FTD Partners at first served a notice to the other party and called for the amicable resolution of the matter, however, did not receive any positive response in this regard. FTD Partners filed civil case against the insurance company for the recovery of the claimed amount, presented evidence in the support of its claims and against the conduct of other party.

Decision:

The Court decided the case on its merits and found that the Defendant is guilty of breaching the Insurance laws of UAE. Court ordered the Defendant to pay our Client an amount of AED 800,000/-.

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