Kuwait Court of Cassation principle number 2523

Insurance against damage. It must be based on a legitimate economic interest, such that the risk insured against arises from an activity not contrary to public policy and morals. The reason therefor. Insurance against risks resulting from acts not sanctioned by law is impermissible. Contravention thereof. Its effect. Nullity of the insurance. - A non-Kuwaiti’s engagement in trade individually. The law prohibits it by a prohibition pertaining to public policy. The consequence thereof. Absolute nullity of all contracts he concludes connected with this activity, including the insurance contract. The exception. A non-Kuwaiti’s practice of a simple craft or small trade.