KCC 1/2004/2
Type
Case
Court
Kuwait Court of Cassation
Jurisdiction
Kuwait
Taxonomy
Types of Contract, General Insurance Law, Rights & Duties of Employees & Employers, Remedies
Copyright
LexisNexis
Decision date
6 Apr 2004
Catchwords
Insurance Contract – Employee – Work based Injury – Personal Accident Insurance – Calculation of Compensation – Legal Interest – Notification Procedures
This case involved a claim against an insurance company after compensation was not paid out when an employee was injured although their employer had taken out insurance for this. The key issues were how the compensation should be calculated for the level of disability and the importance of a notification clause. It was also confirmed legal interest was required for late payment.
Background
A company signed a group insurance contract on life, personal accidents, and medical treatment for its staff. Under the contract the insurance company was to pay a three years' salary for any disability of 50% or more.
An employee was injured at work, resulting in permanent disability but the insurance company refused to pay the compensation. A case was filed requesting the financial compensation. The court of first instance ruled that the company should pay the employee the full compensation but refused the remaining requests.
Decision