Kuwait – Insurers cannot claim car wreckage
Wednesday, 01 20 2016, Category: Insurance and Reinsurance, Country: Kuwait
The Counseling Room of the Court of Cassation rejected the appeal made by an insurance company. It thus approved a judgment by the Court of Appeal, which compels an insurance company to settle fully the indemnification set in the comprehensive motor insurance contract amounting to KD 16750. This amount represents the full damage of the vehicle without subtracting any depreciation charge and not even returning the damaged car to the insurer or transferring its ownership to that insurer.
The Court of Appeal said when it examined the facts presented by the citizen and conveyed by the lawyer that the insurance contract did not stipulate that the car wreckage in case of full damage will be owned by the insurer. Therefore, the car will still be owned by the insured. Consequently, the insurer will have to pay the total amount covering fully the value of the car, which has been destroyed. Furthermore, the accident which caused total destruction took place within 10 days of the signing of the insurance contract, so it does not allow any deprecation decrease in the amount agreed upon.