Unified Document for Vehicle Insurance

How to Claim Vehicle Accident Compensation in the UAE?

04 June 2026

Many vehicle owners in the UAE face essential questions after an accident: What does the insurance policy cover? How is compensation calculated? When is the insurance company entitled to seek reimbursement for what it has paid? The unified vehicle insurance policy against loss and damage issued under the decision of the Board of Directors of the Insurance Authority No. (25) of 2016 and its amendments regulates this relationship in detail. Our office team reviews the key points you need to know in this article.

How to claim vehicle accident compensation in the UAE?
Your comprehensive guide to the unified vehicle insurance policy

First: In what cases is the insurance company obligated to compensate?

The unified policy covers damages to the vehicle in the following cases:

Cause of damage	Coverage
Collision, overturning, accidental incident, or sudden mechanical failure	Covered
Fire, external explosion, self-ignition, or lightning	Covered
Robbery or theft	Covered
Deliberate act by a third party	Covered
Damage during land or water transport or by elevators and cranes	Covered
Additional coverages agreed upon in special appendices	Covered as per the appendix

Second: How is compensation determined?

The insurance company is obligated to choose one of the following options upon the occurrence of the accident:

Repair the vehicleAnd restore it to its condition before the accident through approved repair workshops.
Pay the cash value of the loss or damageIf agreed upon with the insured.
Replace the vehicleIn the case of total loss unless the insured requests cash payment.

Total loss:If repair costs exceed 50% of the vehicle's value before the accident, or if it cannot be repaired, it is considered a total loss, and compensation is calculated based on the insured value agreed upon in the policy after deducting a depreciation rate of 20% calculated proportionally for the elapsed insurance period up to the date of the accident.

Third: Depreciation rates applied to spare parts

When requesting the installation of new original spare parts, the insured bears a depreciation percentage that is deducted from the invoice value according to the following tables:

For private vehicles

Vehicle year	Depreciation percentage
First	No depreciation
Second	5%
Third	10%
Fourth	15%
Fifth	20%
Sixth and above	30%

For taxi, public, and rental vehicles

Vehicle year	Depreciation percentage
Last six months of the first year	10%
Second	20%
Third	25%
Fourth	30%
Fifth	35%
Sixth and above	40%

Fourth: Deductible amounts

The insured bears an amount deducted from the compensation for each accident according to the value of the vehicle:

Type of vehicle and its value	Maximum deductible
Private — up to 50,000 dirhams	350 dirhams / accident
Private — from 50,001 to 100,000 dirhams	700 dirhams / accident
Private — from 100,001 to 250,000 dirhams	1,000 dirhams / accident
Private — from 250,001 to 500,000 dirhams	1,200 dirhams / accident
Private — above 500,000 dirhams	1,400 dirhams / accident
Vehicle up to 12 passengers	1,500 dirhams / accident
Above 12 passengers, taxi, and transport up to 3 tons	1,700 dirhams / accident
Transport over 3 tons, buses, and industrial vehicles	4,500 dirhams / accident

Additional deductible in special cases:
— Driver under 25 years: 10% maximum of the compensation value
— Taxi and public vehicles: 10%
— Sports and modified vehicles: 15%
— Non-factory modified vehicles: 20%
— Rental vehicles: 20%
In cases of multiple deductibles, the highest one applies, and no deductible applies in the case of total loss.

Fifth: What the policy does not cover (exclusions)

Indirect loss or decrease in the value of the vehicle due to use.
Tire damage alone without damage to the vehicle.
Damage resulting from overloading or exceeding width, length, height, or number of passengers.
Using the vehicle in speed races.
Driving by an unlicensed person or someone whose license has expired and has not renewed it within 30 days.
Driving under the influence of drugs, alcohol, or intoxicating substances.
Damages outside the borders of the UAE unless an extension of coverage is issued.
Natural disasters (floods, hurricanes, earthquakes) unless the competent authority issues a decision declaring them a disaster.
Wars, invasions, disturbances, and nuclear materials.

Sixth: When can the insurance company recover what it paid?

The insurance company has the right to recover from the insured or the driver to reclaim what it paid in the following cases:

If it is proven that the insurance was concluded based on false data or concealment of essential facts.
Using the vehicle for purposes other than those specified in the insurance application.
Proven violation involving a felony or intentional misdemeanor.
Driving the vehicle by an unlicensed person or under the influence of drugs or alcohol.
If it is proven that the accident occurred intentionally by the insured or the driver.
If an unapproved trailer caused the accident.

Important legal advice

Notify the official authorities and the company immediatelyin the event of an accident — unjustified delay may complicate your situation.
Do not admit liabilityto the other party before legal consultation, as this may forfeit the company's right to recover from the responsible party.
Keep all documents— police report, repair invoices, correspondence with the insurance company.
The company cannot refuse compensationdue to delay in reporting if the delay is for a valid reason.
In case of disagreement over the value of damagesthe insurance authority appoints a licensed expert at the company's expense to settle the dispute.
Statute of limitationsthree years from the date of the accident or knowledge of it — do not delay in claiming.

The role of the lawyer in insurance disputes

Reviewing the insurance document and determining the actual coverage scope.
Challenging decisions to refuse or reduce compensation.
Negotiating with the insurance company to reach a fair settlement.
Representing the insured before judicial authorities when necessary.
Defense in cases of the insurance company's recourse against the insured.

Frequently Asked Questions

Does the policy cover vehicle damage if the driver is unlicensed?

No, vehicle damage caused by an unlicensed driver is excluded from coverage. The only exception is rental vehicles as long as the rental agreement is made with someone holding a valid license.

Is the deductible applicable in the case of total loss?

No. The law is clear that no deductible percentage applies in the case of total loss of the vehicle.

Am I allowed to repair my vehicle myself?

Yes, provided that the estimated repair costs do not exceed the amount agreed upon in writing with the company. If you drive the vehicle before making the repairs, any additional damage will not be covered by the company.

Can the company terminate my policy while it is still in effect?

Yes, but there must be valid reasons and a written notice must be sent to the insured at least 30 days before the termination date, along with notifying the insurance authority, and refunding the remaining premium proportionate to the duration.

What should I do if the company refuses compensation or reduces it without justification?

You have the right to file a complaint with the insurance authority, which has the authority to appoint an expert for inspection and assessment at the company's expense. You also have the right to resort to the courts within three years from the date of the accident or knowledge of it.

Summary

The unified policy covers collision, fire, theft, and third-party actions, but excludes specific cases such as unlicensed driving and natural disasters.
Depreciation rates increase with the age of the vehicle and vary between private vehicles and rental and taxi vehicles.
Deductible amounts vary based on the value of the vehicle, its type, and the driver's age, and are not applied in total loss.
The company can recourse against you if fraud, unlicensed driving, or misuse is proven.
The statute of limitations is three years — do not delay in claiming your rights.

Legal Disclaimer:This article is purely informational and educational in nature and does not constitute legal advice. Each case has its own circumstances that may affect the legal classification and the resulting outcomes.

Have you faced a problem with the insurance company after an accident?

Whether your compensation was denied, unjustly reduced, or the company charged you amounts, the team Awad Al-Muhairi Law Firm and Legal Consultationsis fully prepared to assist you.