New legal principle, no compensation outside the Emirates

The recent dispute between an insurer and an insured claiming compensation for an accident occurring in Oman led to the introduction of a new legal principle.

Henceforth, no compensation will be paid to an insured for a motor vehicle accident that has taken place outside the United Arab Emirates, unless there is explicit stipulation in the insurance contract.

The decision, handed down by the Court of Cassation, which concluded this case for the benefit of the insurance company, is based on the Ministerial Decree N° 54 of 1987 specifying the geographic coverage of insurance policies.

As a reminder, the complainant had hired a car in Dubai to travel to Oman, where she had been victim of an accident after which her husband died and her daughters were seriously injured.

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