The Emirates Insurance Federation announced that insurance companies are cooperating fully and are committed to compensating for damages sustained by car agencies according to the terms of their contracts.
When it comes to cars that are in the possession of agencies for repair or during regular service, the responsibility for compensating their owners is determined by law if a dispute arises, even if the vehicles have comprehensive insurance.
Legal Responsibility of Car Agencies
A legal expert has confirmed that car agencies are legally responsible for the vehicles in their possession. Any damages sustained by these cars are covered by the insurance policies that the agencies themselves have taken out to protect the vehicles in their care.
Mohammed Mazhar Hamada, Vice Chairman of the Supreme Technical Committee and Head of the Automotive Committee at the Emirates Insurance Federation, explained that car agencies and repair garages have specific insurance policies and contracts with insurance companies. These agreements include provisions for compensation in the event of damage or loss to property in their possession, which includes cars being repaired or serviced. He emphasized that the resolution of who is responsible for compensating damages to cars with comprehensive insurance when they are damaged inside the agency is a matter for legal interpretation. He reassured me that insurance companies are cooperative and committed to paying compensation according to the concluded contracts.
Lawyer Dr. Youssef Al-Sharif added to the discussion, stating that numerous questions have been raised recently about compensating vehicle damages due to the adverse weather conditions the country has experienced. He clarified that comprehensive vehicle insurance typically covers such damages, whereas compulsory insurance (which covers third parties) does not. However, for comprehensive insurance to apply, the vehicle must be on the road.
Responsibility for Vehicles in Agency Care
Dr. Al-Sharif went on to say that when damage happens, cars owned by organizations for maintenance or repairs are not operating on the road. Thus, the comprehensive insurance on the car does not cover them. Rather, the insurance plans that the agencies themselves have for the cars under their supervision cover these damages. This is particularly relevant in the event that the authorities fail to protect these vehicles in inclement weather.
Dr. Al-Sharif justified this position by noting that state agencies had previously issued warnings about the potential impact of low weather and rain. Therefore, any damage to vehicles in the possession of agencies would be covered by the agencies' liability insurance, not the comprehensive insurance of the vehicles themselves. While comprehensive insurance covers damages to vehicles on the road, vehicles in the care of agencies during repairs or service are covered by the agencies' own insurance policies. This ensures that the agencies are held accountable for any negligence in safeguarding the vehicles during adverse weather conditions.
