The report concluded that the fire was caused by batteries stacked beside flammable goods. Dubai: A battery manufacturer in Dubai has been sentenced to pay Dh299,000 in compensation to an insurance company after being found responsible for a fire that broke out at its warehouse due to improper storage procedures. In an open court judgment, the Dubai Civil Court determined that the battery firm must pay the amount, as well as legal interest at a rate of 5% per year from the date the ruling becomes official until full settlement, plus court expenses.
The claimant, an insurance business, issued a complete property insurance coverage in favor of one of its clients, according to the newspaper. Products kept in a warehouse run by the defendant battery manufacturer were covered by the policy. The insured products were completely destroyed when a fire broke out at the warehouse during the policy period and persisted throughout the next day. A report from Dubai Police that included the conclusions of a fire expert was one of the investigations carried out by the appropriate authorities. According to the study, batteries kept next to extremely flammable goods and exposed to direct sunlight in the warehouse yard were the cause of the fire.
Internal conductor temperatures increased as a result of this exposure, which set off a prolonged thermal reaction that ultimately resulted in fire. The battery company was in possession of the goods at the time of the occurrence, according to the investigation. The insurance company hired a specialized technical organization to evaluate the damage after the fire. Together with the cost of the damage assessment, the total loss was determined to be Dh270,926. After obtaining a discharge and subrogation acknowledgment and paying the insured party the entire compensation sum, the insurer filed a recourse claim against the person that caused the harm.
The battery firm contested its liability, contested the court’s jurisdiction, and claimed the case should be dismissed for lack of standing during the proceedings. The insurer’s legal authority to pursue recovery under the terms of the UAE Civil Transactions Law was upheld by the court, which dismissed these claims. The court concluded that the battery company had engaged in negligent storage procedures based on police investigations and expert conclusions that it deemed to be reliable and well-founded. It determined that dangerous custody of products rendered the corporation entirely responsible for the damages sustained.
