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Motor & Traffic Accident Compensation — ABR Advocates
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Insurance & Compensation

Motor & Traffic Accident Compensation in the UAE

Motor third-party insurance is compulsory in the UAE, and the Unified Motor Insurance Policy fixes minimum terms insurers cannot dilute. We help accident victims pursue their full legal entitlement rather than settle for less.

Understanding Motor Accident Compensation in the UAE

Motor vehicle accidents are among the most common causes of personal injury in the UAE. Under the UAE Traffic Law and its implementing regulations, every registered vehicle must carry third-party liability insurance, and the Unified Motor Insurance Policy fixes the standard terms of that cover — insurers cannot exclude or reduce protection below the unified minimums. In practice, however, accident victims who deal with insurers directly often accept settlements well below their legal entitlement, simply because they do not know what the law allows them to claim.

Compensation in motor accident cases can cover medical expenses, loss of income and future earning capacity, vehicle and property damage, and moral (non-material) damages. Where an accident causes death, the deceased’s family is entitled to Diya — fixed at AED 200,000 and subject to apportionment where the traffic file records contributory fault — and civil compensation for material and moral harm can run alongside the Diya claim. Both elements can fall within the insurer’s exposure under the compulsory cover. The percentage of fault recorded in the police report and traffic file is often decisive, which is why early legal involvement matters.

The new UAE Civil Code (Federal Decree-Law No. 25 of 2025, effective 1 June 2026) has also given courts express power to review compensation paid by instalments or annuity where the victim’s condition changes — an important development in serious injury cases where the long-term impact of an injury only becomes clear over time.

How ABR Advocates Can Help

Strategic legal guidance from accident to compensation:

Accident Investigation

Securing and analysing the police report, traffic file, witness statements, and expert assessments to establish liability and fault apportionment.

Medical Documentation

Working with treating physicians and medical experts to document injuries, disability percentages, and future medical needs.

Loss of Earnings Calculation

Quantifying lost income, reduced earning capacity, and long-term financial impact with supporting evidence the courts accept.

Negotiation with Insurers

Engaging directly with insurance companies to pursue fair settlements based on your actual legal entitlement.

Litigation

Pursuing claims before the Insurance Dispute Resolution Committees and the UAE Courts where settlement offers are inadequate.

Appeals

Challenging rejected or undervalued claims through appeal, up to the Court of Cassation where warranted.

See also: Blood Money (Diya) & Death Compensation · Insurance Claim Disputes & Rejected Claims.

Common questions

Motor & Traffic Accident Compensation FAQs

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Call the police and obtain the accident report — no insurance claim can proceed without it. Seek medical attention promptly, even for injuries that seem minor, and keep all reports and receipts. Photograph the scene and vehicles if it is safe to do so. Before signing any settlement or discharge document from an insurer, have it reviewed by a lawyer: once signed, it can be very difficult to reopen.
There is no single fixed formula. Courts assess medical expenses (past and future), lost income and earning capacity, property damage, and moral damages, typically guided by court-appointed expert reports and the fault apportionment in the traffic file. In fatal cases, Diya of AED 200,000 applies alongside any civil compensation. An experienced lawyer ensures every recoverable head of loss is properly evidenced and claimed.
Strict limitation periods apply, and they differ depending on whether the claim is brought against the insurer under the policy or against the responsible party in tort, and on any related criminal proceedings. Missing a deadline can extinguish an otherwise strong claim, so seek legal advice as early as possible after the accident.
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This page is provided for general information only and does not constitute legal advice. Law references last reviewed July 2026.

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