FAQ: When a vehicle insured under a comprehensive policy suffers a total loss, is the insurer bound to pay the insured value stated in the policy, or can it reduce compensation to the market value?

Answer: The insurer is bound to pay the insured value agreed in the policy.

Legal Basis:

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