Kuwait Court of Cassation principle number 163

Summary: Licensing a motor vehicle or renewing its licence. Its condition: insurance against civil liability arising from motor vehicle accidents. The insurance must remain effective throughout the licence period. Its purpose: protecting the injured party and ensuring that compensation is obtained. This insurance is deemed stipulated for the benefit of a third party suffering injury to his person or property, who thereby has a personal right recoverable from the insurer, a direct right derived from the law. The insured may not, under the provisions of this law, recover from the insurer the 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 insurance purposes and therefore does not benefit from it. Rule: The provision in Article 6 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 requires insurance against civil liability arising from vehicle accidents, effective throughout the licence period, and that the Minister of Interior shall issue a decision concerning the rules and conditions of this insurance, and the provision in Article 63 of Minister of Interior Decision No. 81 of 1976 issuing the Executive 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 from vehicle accidents occurring in Kuwait within all its territorial boundaries. The insurer's obligation shall cover 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 applying to license a motor vehicle or renew its licence, intending thereby to protect the injured party and ensure that he obtains his 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 suffering injury to his person or property, who consequently has a personal right recoverable from the insurer, a direct right derived from the law. The insured, however, is not considered a third party for purposes of this insurance, does not benefit from it, and is not entitled under its provisions to recover from the insurer the compensation paid to the injured party unless this is agreed in the insurance policy itself.