DCC 241/96
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai, United Arab Emirates
Taxonomy
General Insurance Law
Copyright
LexisNexis
Decision date
5 Jan 1997
Catchwords
Insurance – Theft – Vehicle Hire - Transport
This case involved an insurance claim for a hired car which had not been returned. The key issue was whether the loss was covered by the insurance policy as the car had not been stolen but taken by a known person.
Background
A claim was brought against an individual (first defendant) and the claimant's insurer (second defendant) ordering them to pay 201,200 AED for a vehicle that was not returned to the claimant after being hired by the first defendant. The court of first instance ordered the defendants to pay 60,000 AED and the first defendant to pay an additional 30,000 AED. Both defendants appealed and the appeal court upheld the judgement. The second defendant appealed by cassation arguing it was not liable to reimburse the claimant as the vehicle had not been stolen, but hired by a known individual. This was therefore a breach of trust which was not a risk covered by the insurance policy.
Decision