How to Handle a Total Loss Vehicle Claim in the UAE

Accidents are unpredictable, and in some cases, your vehicle may be deemed a total loss. In the UAE, the process of handling a total loss vehicle claim can be complex but manageable with the right information and guidance. This blog will walk you through the steps to ensure you’re prepared to handle a total loss vehicle claim effectively.

What is a Total Loss?

A vehicle is considered a total loss when the cost of repairs exceeds a certain percentage of the car’s value or when the car is damaged beyond repair. In the UAE, insurers typically classify a vehicle as a total loss when the repair costs exceed 50-70% of the vehicle’s market value, depending on the insurance provider.

Step 1: Report the Accident and File a Police Report

The first and most crucial step after an accident is to call the police. In the UAE, a police report is mandatory for any insurance claim. Make sure to obtain an official accident report, as it will be required by your insurer to process the claim.

• Tip: Ensure that all parties involved in the accident provide accurate details to avoid any delays in obtaining the police report.

Step 2: Notify Your Insurance Company

Once the accident is reported, inform your insurance provider immediately. Most insurance companies in the UAE have a window of 24-48 hours to report an accident. When notifying your insurer, provide them with the police report, details of the accident, and photographs of the vehicle damage (if possible).

• Documents Needed:
  • Police report
  • Vehicle registration (Mulkiya)
  • Driving license
  • Insurance policy

Step 3: Vehicle Inspection

After notifying your insurance company, they will arrange for an inspection of the damaged vehicle. A qualified assessor will determine whether the vehicle is repairable or classified as a total loss.

• Factors Considered:
  • Age of the vehicle
  • Cost of repairs vs. vehicle’s current market value
  • Extent of damage

Step 4: Total Loss Decision and Offer

If your vehicle is deemed a total loss, the insurance company will offer a settlement based on the vehicle’s current market value. This value is determined by considering the car’s make, model, age, mileage, and condition before the accident.

• Note: The insurer will deduct any excess (deductible) as per your policy terms.

Step 5: Settling the Claim

Once the total loss offer is made, you have two options:

1. Accept the Settlement: Your insurer will pay the agreed value, and you will need to hand over the car’s registration and keys to the insurer.
2. Negotiate the Offer: If you believe the offered value is below the market rate, you can negotiate with your insurer. Providing evidence like recent sales of similar vehicles can help strengthen your case.

Step 6: Handling a Financed Vehicle

If your vehicle is financed through a bank, your insurer will settle the outstanding loan amount with the bank directly. If the settlement exceeds the outstanding loan, the remaining balance will be paid to you. If it falls short, you will need to cover the difference.

• Tip: Keep your bank informed throughout the claim process, as they will need to release the vehicle’s title.

Step 7: Cancelling Vehicle Registration

Once the vehicle is declared a total loss, it is important to cancel the vehicle’s registration (Mulkiya) at the Roads and Transport Authority (RTA). This step ensures that the car is officially off the road and avoids future fines.

• Documents Needed:
  • Vehicle registration
  • Emirates ID
  • Police report and insurance declaration of total loss

Step 8: Purchasing a New Vehicle

Once your claim is settled, you can start searching for a new vehicle. In some cases, the insurer may offer discounts on new insurance policies if you purchase a new vehicle and insure it with them.

Common Mistakes to Avoid in Total Loss Claims

• Delay in Reporting: Ensure you report the accident to your insurer within the allowed time frame.
• Not Understanding Policy Terms: Familiarize yourself with your policy’s total loss coverage, especially regarding depreciation, deductibles, and exclusions.
• Accepting a Low Offer: Don’t hesitate to negotiate if the settlement offer is lower than the market value of your car.

Final Thoughts

Handling a total loss vehicle claim in the UAE can seem overwhelming, but by understanding the process and staying informed, you can navigate it smoothly. Always maintain proper communication with both your insurance company and the authorities to avoid delays.

At Savington Insurance, we’re here to guide you every step of the way. If you ever face a total loss, rest assured that we’ll work diligently to provide the best possible settlement and make the process as stress-free as possible.