Wife rams hubby's Dubai car; insurer loses
The Dubai Cassation Court ruled that if two vehicles involved in an accident are owned by one person and the driver responsible for the accident is a first-degree relative of the insured (insurance policy holder), then there will be no compensation applicable.
The court was hearing an accident case, wherein the wife’s car collided with her husband’s car, causing damages of up to Dh75,675 to the latter’s vehicle. Both the cars were insured by different insurance firms.
The insurance company of the car driven by the husband paid Dh75,675. However, they claimed the amount from the insurance company of the wife’s car, because police records revealed the woman was responsible for the accident.
Thus, the firms took the case to the Court of First Instance, which ruled that the defendant company should pay the plaintiff the repair amount.
The defendant company appealed the verdict, and the Appeal’s Court cancelled the verdict and turned down the case.
According to the law, if the disputed amount is below Dh200,000, disputant parties have no right to appeal the verdict before the Cassation Court. However, the Attorney-General has the right to re-study the case for maintaining law welfare.
Therefore, the plaintiff submitted a request to Issam Al Humaidan, Attorney-General, who in turn assigned Tareq Al Naqbi, Assistant Chief Prosecutor, Civil Prosecution, to study the case.
Based on the study, and within his authority to appeal cases for the benefit of Law, pursuant to Article (174) of Civil Procedure Act, the Attorney-General ordered the case be referred the Cassation Court.
And the Cassation Court ruled out compensation. It said no compensation would be applicable if two vehicles involved in an accident are owned by one person and if the driver responsible for the accident was a first-degree relative of the insured person.
The court based its ruling on Article No. 1030 of the UAE Civil Transactions Code, which governs the right of subrogation.
The article states that if the person causing unintentional damage was a descendant, spouse or guardian, the insurer has no right to pursue a subrogated claim against the party responsible for the damage against payments previously made to its insured and to recover such indemnity payments form the party at fault who caused the damage.
The court also based its ruling as per Article No. 1 of chapter on dangers covered under the insurance policy against civil liability, issued in the ministerial decree No. 54 of 1987 on unified car insurance policy.
The article states that company insuring a car against civil liability is not committed, in case of an accident resulting from using it, to compensate the policy holder or the one who was driving the car during the accident when the car was under his possession or guardianship, for damages that may affect properties owned by the policy holder or the driver.
The Cassation Court ruled that both cars, that caused the accident and that was damaged by the accident, were owned by one person. Also, the driver who was responsible for the accident was the wife of the insured, the policy holder. So the insurance company of the car that was responsible for the accident shall not compensate for the damages.
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