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23 April 2024

Insurance firm wins Dh145k accident compensation case

Those who function without a licence can be punished by a warning; or a fine not exceeding Dh5,000; or a ban. (File)

Published
By Eman Al Baik

The Dubai Cassation court ordered a company whose driver caused the death of a person to pay back Dh145,000 to the insurance  company because the driver was not holding a licence to qualify him to drive such a vehicle.

According to the records, on December 3, 2008, the company owning the bus had assigned to the bus a driver who does not hold the licence required for driving such vehicle.

The driver was involved in a road accident in which a person died. A penal court case was lodged against the driver who was then found guilty of causing the death of the man.

The heirs of the deceased filed a civil case asking the insurance company of the bus to compensate them.

The First Instance Court ordered the insurance company to pay Dh144,395 to the heirs of the deceased.

The Appeal Court later upheld the verdict. The insurance company paid the amount to the heirs.

However, the insurance company filed another case to recover the money it had paid to the heirs of the deceased.

The First Instance rejected the case. The sentence was appealed and the Court of Appeal also turned down the case.

The value in the case was below the limit that allows it to be brought to the Cassation Court, so the verdict became final.

So the insurance company brought the issue to the notice of the Attorney General who ordered studying the case.

Dubai Prosecution found out that when the court had made a mistake in implementing the law while turning down the case.

The Attorney General ordered to appeal the sentence before the Cassation Court.

In its argument, the Prosecution mentioned that the insurance company had the right to reclaim the compensation that it had paid to the heirs of the deceased, because the driver who had caused the accident was not holding a licence that qualified him to drive such a vehicle and that the owner of bus knew about this.

Article No 11 Para D of the unified insurance company law gives the right to the insurance company to reclaim compensation amount if the insured knew that the driver who caused the accident did not hold the necessary driving licence, regardless of the causes of the accident.

The Cassation court ordered the company owner of the bus to pay back to the insurance company the value of the compensation.