The procedures for disbursing compensation for the “total loss” of the car do not exceed 15 days

Vice Chairman of the Supreme Technical Committee and Head of the Automotive Committee at the Emirates Insurance Federation, Mohammed Mazhar Hamada, stated that completing the procedures for disbursing compensation or cash consideration to the insured (the injured person), whose car was decided to be considered a “total loss” as a result of an accident, should not take 10 days or more. 15 days at most, given the ease of completing the transaction, compared to the car repair process.

Hamada’s statements to “Emirates Today” came in response to the complaints of insured policyholders affected in car accidents, who confirmed to the newspaper that they suffer throughout the period of the procedures, and their multiple visits to the insurance company they deal with, as well as the insurance company of the “cause” of the accident, pointing out that There was no direct answer to the phone, or a commitment to a specific date to disburse the cash, as a result of their cars being considered a “total loss” in the accident.

They explained that the period for disbursing compensation exceeds a month, while some companies procrastinate for up to 45 days, which greatly affects their interests, especially in light of the lack of an alternative car.

Hamada said: “The car is calculated as a (total loss) in car accidents according to what is customary if the cost of repairing the car exceeds 50% of its value stipulated in the document. It is assumed that the procedures will be completed quickly, given the ease of calculating the value that must be disbursed to the affected customer. Unlike repair, which may take time due to lack of spare parts, for example, or because the insured has an objection to the location of the repair, or other matters that take time.

He added: “Therefore, companies should not delay in completing the procedures and disbursing the cash allowance so that the affected person can manage his affairs.”

He stressed that the injured insured has the right to a replacement car during the period of completion of the procedures, the cost of which will be borne by the insurance company of the “causing party”, since he had no hand in all this damage that befell him and affected his interests.

Hamada continued: “Most companies operating in the market are committed and take their reputation into account, but on the other hand, if an insured encounters problems that are difficult to solve, or is greatly harmed as a result of delay in completing the procedures or procrastination, he can resort to the regulatory authority, represented by the Central Bank, which in turn takes measures.” To solve the problem.