Here’s a complete guide to understanding how compensation for car accident claims is calculated in the UAE:
- Types of Compensation
Compensation can cover the following:
- Medical Expenses: Costs for immediate treatment, surgeries, and long-term rehabilitation.
- Vehicle Damage: Costs for repair or replacement of the vehicle based on repair quotes or insurance valuation.
- Loss of Income: Compensation for income lost due to injuries.
- Moral Damages: Pain, suffering, emotional distress, and loss of enjoyment of life.
- Disability and Permanent Injuries: If the accident results in long-term or permanent disability, additional compensation may be awarded based on the severity and impact on livelihood.
- Legal Framework
- Federal Law No. 5 of 1985: Governs civil claims for damages.
- Federal Law No. 21 of 1995: Regulates insurance companies and outlines their obligations in compensating victims.
- Responsibility Proof: The injured party must prove that the other party was at fault.
- Key Factors in Calculation
The compensation amount depends on:
- Severity of Injuries: The nature of injuries and the cost of medical treatment.
- Extent of Damage: Costs of repairing the vehicle or replacing damaged property.
- Age and Profession: Younger victims or those in high-earning professions may receive higher compensation for long-term disabilities or lost earnings.
- Negligence Level: If partial fault is proven, compensation may be reduced proportionally.
- Documentation: Medical records, police reports, and evidence of property damage are crucial in determining claims.
- Role of Insurance
- Third-Party Liability Insurance: Mandatory in the UAE, this covers damages caused by the insured to other individuals or property.
- Comprehensive Insurance: Covers both the policyholder’s and third-party damages, depending on policy terms.
- Compensation Process
- Report the Accident: Obtain a police report with detailed findings.
- Medical Documentation: Retain all records of treatment and expenses.
- File a Claim:
- Submit the claim to the at-fault party’s insurer or your own.
- Include all evidence such as photos, repair estimates, and receipts.
- Negotiation with Insurer: The insurer evaluates the claim and offers compensation.
- Court Involvement:
- If disputes arise, cases can escalate to the courts.
- Courts may appoint experts to assess damages and determine fair compensation.
- Compensation Limits
- Uninsured At-Fault Parties: Claims can still be made through a Traffic Accident Claims Fund or similar mechanisms.
- Partial Responsibility: Compensation may be adjusted based on the percentage of fault.
- Time Limits
Claims must be filed within three years of the accident. Failure to act within this period may result in a loss of the right to claim compensation.
- Court Rulings
Courts in the UAE consider:
- Evidence provided.
- Expert opinions on damages.
- Applicable laws, including Sharia principles for moral and emotional damages.
Practical Tips
- Retain all documents, including the police report, insurance policies, medical bills, and repair estimates.
- Seek professional legal assistance if claims are contested or if the insurance offer seems inadequate.
