Kuwait Court of Cassation principle number 153

Summary: - Licensing a motor vehicle or renewing its licence. Its condition: insurance against civil liability arising from motor vehicle accidents. The insurance must remain valid for the duration of the licence. Its purpose. Protecting the injured party and ensuring that the injured party obtains compensation. This insurance is deemed stipulated for the benefit of a third party who suffers injury to their person or property and thereby constitutes a personal right recoverable from the insurer, being a direct right derived from the law. The insured may not, pursuant to the provisions of this Law, have recourse against the insurer for compensation paid to the injured party unless otherwise agreed in the insurance policy itself. The basis thereof: the insured is not considered a third party for purposes of the insurance and therefore does not benefit from it. Rule: The provision in Article Six of Decree-Law No. 67 of 1976 concerning traffic—before its amendment by Law No. 52 of 2001—that licensing any motor vehicle or renewing its licence is conditional upon insurance against civil liability arising from accidents involving the vehicle, such insurance to remain valid for the duration of the licence, and that the Minister of Interior shall issue a decision prescribing the rules and conditions of this insurance; and in Article 63 of Minister of Interior Decision No. 81 of 1976 issuing the Implementing Regulations of the Traffic Law, that "Insurance of motor vehicles is compulsory for the benefit of third parties, and the insurer shall cover civil liability arising from material bodily damage resulting from vehicle accidents if they occur in Kuwait within all its territorial boundaries. The insurer's obligation shall be for the amount of compensation awarded, however great that amount may be...", mean, as established in the case law of the Court of Cassation, that the legislature imposed compulsory insurance on everyone seeking to license a motor vehicle or renew its licence, with the aim of protecting the injured party and ensuring that the injured party obtains their right to compensation making good the damage caused by it, however great its value. This type of insurance is stipulated for the benefit of a third party who suffers injury to their person or property and who accordingly has a personal right recoverable from the insurer, being a direct right derived from the law. The insured, however, is not considered a third party for purposes of this insurance, and therefore does not benefit from it and is not entitled, pursuant to its provisions, to have recourse against the insurer for compensation paid to the injured party unless that is agreed in the insurance policy itself.