The heirs of a terminally ill person who concealed his illness will lose their right to receive the insured amount as this is an attempt to defraud the insurance company, the Dubai Court of Cassation has ruled.
This court rejected an appeal by a bank on behalf of the heirs of an insured person against an insurance company.
The bank asked the court to compel the insurance company to pay Dh1 million as the insured amount.
The court pointed out that the appeal was rejected because the insured person concealed the fact that he had lung cancer.
The court added “the reasons behind its ruling that the insured cloaked his health information which is breaching on his contractual obligations. The insurance company need not meet its obligations because the insurance policy contained a false statement.
The bank based its appeal on the fact the insurance policy said the insurer should transfer the insured amount to the bank.
The insured person died eight months after signing the insurance policy due to lung cancer.
The bank demanded that the insurance company pay the insured amount to it as it was the only body assigned to collect the sum.
The insurance company refused to pay on the grounds that the insured person had concealed the fact that he was seriously sick at the time of signing of the insurance contract.
The Court of First Instance had dismissed the case but the bank had appealed the judgment before the Court of Appeal which upheld the judgment of the Court of First Instance. The bank did not accept the verdict of the Court of Appeal and went to the Court of Cassation which issued the above verdict.