A legal principle concerning insurance companies

The Dubai Court of Cassation upheld a principle, based on an appeal by the Dubai Public Prosecutor, obligating insurance companies to compensate third parties injured in accidents caused by the use of an insured vehicle, even if the accident occurred off-road.

Under the unified vehicle liability insurance policy, a third party injured in an accident caused by the use of the insured vehicle has the right to claim compensation directly from the insurance company for damages incurred, regardless of whether the accident occurred while the vehicle was stationary or in operation, provided the injured party was not a passenger in the vehicle that caused the accident.

The company cannot invoke exclusions that exempt it from liability to the insured against the injured third party, including accidents that occurred off-road as defined in the policy and for which no additional coverage was provided.