Unified UAE Legislation Database

FAQ: Can an insurer substitute a replacement vehicle instead of paying the insured value in a total loss case?

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

Answer: No, unless the insured agrees. Under the Unified Motor Vehicle Insurance Policy, the insurer must comply with the insured’s request: either pay the agreed insured value in cash or provide a replacement vehicle. The insured’s choice prevails.

 

Legal Basis:

Unified Motor Vehicle Insurance Policy

Article 7 of Insurance Authority Board of Directors’ Decision No. 25 of 2016 Pertinent to Regulation of the Unified Motor Vehicle Insurance Policies

 

Relevant case law:

Case No. 440 of 2025 / Dubai Court / Civil