Kuwait Court of Cassation principle number 2404

Insurance contract. Its nature. It is a contract whereby the insurer undertakes to pay the insured or beneficiary a sum of money, a regular annuity or any other financial consideration upon the occurrence of the accident or realization of the risk specified in the contract, in return for monetary consideration paid to it. It is permissible to stipulate therein that the beneficiary be another person, who shall have a direct action against the insurance company. The judgment ruling that - 451 - Procedure that action is inadmissible for having been brought by a person lacking standing. An error in applying the law requiring its cassation. Example of a group insurance contract concluded by a company for the benefit of its workers.