Insurance Companies Are Liable To Compensate Insured Motor for Explosion of the Engine Even If There Was No Interference From a Third Party

in Arab Law Quarterly
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Abstract

In a case brought before the A1 Ain Court against a local insurance company, the plaintiff claimed the cost of repairing the engine of her vehicle which was insured with the defendant insurance company. The plaintiff claimed that the engine of her vehicle had exploded accidentally and suddenly and without any apparent reason. She therefore claimed the cost of repairing the engine from the insurance company. The insurance company refused to pay on the ground that the explosion of the engine was a mechanical defect which was excluded from the terms of the insurance policy. Therefore, the insured was not entitled to be reimbursed for the repair of the engine of her own vehicle, because it was not involved in any accident with a third party. The Court of First Instance delivered a judgment in favour of the insured. This judgment was upheld by the Appeal Court and thereafter by the Abu Dhabi Supreme Court of Cassation who held that the explosion was accidental, sudden and for reasons unknown to the assured. This damage was covered by the insurance policy and the insurance company was therefore liable to compensate the insured for the repair costs even though the damage was not caused by an accident with a third party.

Insurance Companies Are Liable To Compensate Insured Motor for Explosion of the Engine Even If There Was No Interference From a Third Party

in Arab Law Quarterly

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