Kuwait Court of Cassation principle number 1820

Payment of a debt. Effect thereof. Subrogation of the payer to the creditor’s rights. - The insurer and the third party responsible for the car accident. The source of each one’s obligation to compensate differs: the former’s obligation arises from the insurance contract and the latter’s from the harmful act. Effect thereof. They are concurrently liable for this debt, and the insurer that has paid the compensation may be legally subrogated to the injured party’s rights against that third party. Condition thereof. The payer must be liable for the debt with the debtor or obliged to pay it on the debtor’s behalf. Article 394 of the Civil Code. - Leasing the insured car to a third party does not make the lessee a party to the insurance contract. Consequence thereof. The lessee does not benefit from the rights it creates and is not liable for the obligations arising from it. Rationale thereof: contracts neither benefit nor prejudice persons other than the contracting parties and their successors.