What Happens When a Car Insurance Claim Is Delayed in UAE

The crash was bad enough. The adrenaline spike, the conversation with the other driver, the hassle of
reporting it via the Police App. But at least you have insurance.

You drop your car at the designated workshop. They tell you, “We will call you in 3 days.”

Three days pass. Then a week. Then two weeks. You call. “Waiting for approval,” they say. You call the
insurance company. “Under process,” the call center agent recites.

This state of limbo is frustrating, but it is rarely random. Insurance claims in the UAE follow a very
strict, linear workflow. When that workflow breaks, it stalls at specific bottlenecks. Understanding exactly
where your claim is stuck is the only way to unstuck it.

1. The “Police Report” Mismatch

In the UAE, the Police Report is the Bible of the claim.
No repair can legally start without it.

There are mainly four types of reports colors:

• Green: You are the victim (Not at fault).
• Red: You are the liable party (At fault).
• White: Unknownparty (Hit and Run).
• Purple/Black: Severe damage / Total Loss potential.

2. The “Recovery” Battle (Green Report Nightmare)

This is the most common reason for delay if you were NOT at fault.

If you have a Green Report, your insurance company (Insurer A) often fixes your car, but they have to get the
money from the At-Fault Driver’s insurance (Insurer B). This is called “Recovery.”

However, Insurer B might argue.

• Insurer A (Yours): “This Mercedes needs a new bumper. Cost: AED 8,000.”
• Insurer B (Theirs): “No way! We can buy that bumper for AED 4,000 from our supplier. We
  reject your invoice.”

While these two giant companies argue over AED 4,000 via internal emails, your car sits stripped in the
workshop, gathering dust. The workshop won’t start work until someone guarantees payment.

3. The “Total Loss” Calculation

If the accident was severe, the delay is almost always a mathematical equation.

In the UAE, a car is declared a “Total Loss” (Write-off) if the repair cost exceeds a certain percentage of
the car’s insured value—usually 50% to 75%.

The Stall: The insurer is getting bids from “Salvage Buyers.” They want to see how much they
can sell your wrecked car for. They are comparing:

• Option A: Pay to fix it (AED 40,000).
• Option B: Pay you the full value (AED 60,000) minus the money they get from selling the scrap (AED
  25,000) = Net Cost AED 35,000.

If Option B is cheaper, they will write it off. This bidding process takes time.

4. The “Document” Freeze

Sometimes, the delay is dangerously simple. You missed an email.

For every claim, insurers need:

• Valid Driving License (Front/Back).
• Mulkiya (Registration Card).
• Emirates ID.

If your Driving License expired last week and you didn’t notice, the claim is frozen. If the scan you sent
was blurry, the claim is frozen. Automated systems pause the workflow the moment a document is missing.

Case Study: The Rental Car Trap

Meet Khalid. He had “Rent-a-Car” coverage on his policy.

Pro Tip: Strategize your rental car usage. Only activate it when the car actually goes into
the workshop for the active repair work, not while it’s sitting in the parking lot waiting for an
inspection.

How to Speed Up Your Claim

You are not powerless. Here is your escalation ladder:

1. Call the Workshop FIRST: Don’t call the insurer yet. Ask the workshop: “Have you
   sent the LPO (Local Purchase Order) request to the insurance?” Often, the workshop is lazy and
   hasn’t even sent the estimate.
2. Ask for “Direct Repair”: If it’s a Recovery Battle (Green Report), ask your insurer:
   “Can you authorize repairs under ‘Knock-for-Knock’ agreement and settle with the other insurer
   later?” Major insurers have this agreement to speed things up.
3. Threaten a Complaint: If the delay exceeds 15 days without a valid reason, mention that
   you will file a complaint with the Central Bank of UAE (Sanadak). This is the
   regulator. The mention of “Sanadak” usually moves your file to a Supervisor’s desk very quickly.

FAQ: Waiting Games

Q: Can I repair the car myself and send the bill?
A: NO. NEVER. Unless you have explicit written approval from the insurer. If you fix it
yourself, they will deny the claim 100% because they lost the right to inspect and negotiate costs.

Q: The garage did a bad job. Who is responsible?
A: If it is an “Agency Repair” or “Network Garage,” the Insurance Company is liable for the quality. Do not
sign the “Discharge Voucher” (satisfaction note) until you are happy. Once you sign that paper, the claim is
closed.