Article 1026 of the Civil Transaction Law, Federal Law No. (5) of 1985 states that Insurance is a contract where the assured and the insurer cooperates in facing the insured risks or events, and whereby the assured pays the insurer a specified sum or periodical installments, and if the risk or the event set out in the contract materializes, the insurer pays to the assured or the person stipulated as the beneficiary, a sum of money or a regular income or any other pecuniary right.
The law shall lay down provisions governing those bodies which may carry on insurance business and matters relating to their legal form, the manner of their establishment, the manner in which they carry on their business, and supervision thereof, in such a manner as to achieve the cooperative aims of insurance, and the definitive laws and basic principles shall not conflict with the Islamic Shari’a.
Article 1028 is an important part of the insurance law. This states that any of the following provisions appearing in a policy of insurance shall be void.
- Any provision that provides that the right to insurance shall lapse by reason of a breach of the law, unless the breach involves a felony or a deliberate misdemeanour.
- A provision whereby the right of the assured shall lapse by reason of his delay in giving notice of the incident insured against to the parties which should be notified or to provide documents in the event that it appears that there is a reasonable excuse for the delay.
- Any printed condition relating to cases involving nullity of the contract or forfeiture of the insured’s right, which is not shown in a clear manner;
- The arbitration condition included in the printed general conditions of the policy and not as a special agreement distinct therefrom.
- Any arbitrary condition, the breach thereof appears that it has no bearing on the occurrence of the event insured against.
Article 1036
Actions arising out of insurance contracts shall be barred by limitation after the expiration of three years from the date of the occurrence which gave rise to such action, or of the knowledge of the interested party of its occurrence. This period, however, shall only run, in the event of concealment by the insured of the information relating to the risk insured against, or submission of incorrect statements, as from the date the insurer has taken knowledge thereof.
Obligations of the insurer
The insurer is bound to pay the insured amount or the sum due to the insured or the beneficiary, as agreed, upon the occurrence of the risk or maturity of the period fixed in the contract.
Insurance covering tort liability shall have no effect unless the victim files a claim against the beneficiary after the occurrence of the event from which resulted such liability.
If you or your loved ones encounter any unfortune incidents in life, you shall approach an expert attorney for better clarifications.
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