DCC 478/2005

This case involved a cement mixer damaged in a road traffic accident. Although the mixer was insured there was an exclusion on road accidents. The insurer of the mixer could not refer this cost on to the insurer who had covered the guilty driver if they wrongly paid this compensation.

Background

A Respondent Company filed suit No. 119 of 2004 before the Dubai Court of First Instance against the Appellant requesting they pay 137,500 AED with interest from the date of filing the claim until full payment on the basis of the fact that on 17/4/2003, a driver of a car, insured by the Defendant company under insurance policy No. 40327, hit a cement mixer No. 17864, insured by the Plaintiff Company. The incident resulted in the death of a person, damage to third parties and damage to other property.

The driver of the car was convicted of a criminal offence and the cement mixer could no longer be used.

The claimant company compensated the insured party - the owner of the mixer - with 207,000 AED and replaced it in the claim for compensation.