Drink drivers to pay back insurance: Court

The insurance company has the right to recover the amount of compensation paid to an insured person in the event of discovery that the driver was under the influence of alcohol or drugs at the time of the accident, according to a new principle established by the Dubai Court of Cassation.

Meanwhile, the court also confirmed that it does not need the company to be aware if the driver of the vehicle was under the influence of drugs or alcohol.

The court asserted in such a case it is enough that the insured person gave the permission to the driver to drive that vehicle and that it was driven with his knowledge.

The court established these legal principles while hearing a case of a person who died when a crane ran over him at his workplace and the driver was under the influence of alcohol.

The family of the deceased asked the court to compel the defendants (driver, company as well as the insurance company) to pay Dh300,000 as compensation for the loss of their only breadwinner.

The family based their claim on the judgment of the Court of First Instance, which convicted the driver and issued a verdict in their favour.

The Court of First Instance ordered the driver to pay Dh200,000 as blood money, in addition to Dh100,000 as compensation for material and moral damage.

According to the verdict of Court of First Instance, the driver, the company and the insurance company were to jointly raise the amount.

However, the insurance company did not accept this ruling and appealed before the Dubai Court of Appeal, which in turn asked the driver and his company to pay the amount.

The insurance company based its appeal that the driver was under the influence of alcohol while at the wheels.

However, the Dubai Court of Appeal rejected the appeal of the insurance company and upheld the appellant judgment.

The Court of Appeal said that the insurance company did not provide proof that the company that employs the driver was aware that he was an alcoholic.

Therefore, the  insurance company appealed the ruling before the Court of Cassation, which accepted the appeal and ruled that the insurance company be refunded the Dh300,000 paid to the heirs.

The Appellate Court based its ruling to the Ministerial Decree No. 54 of 1987 on unification of auto insurance policies.

The Court of Cassation said in the reasons for judgment that the company does not dispute that the driver of the crane was working under its sponsorship and its permission. And the fact that company not being aware of his alcoholism is immaterial.

The court added that the insurance company isn’t obliged to provide proof that the company was aware that the driver was under the influence of alcohol during work hours.



 

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