Conditions shall be met in the insured risk – UAE LAW Our long experience in handling insurance issues at Mohamed Al Marzooqi advocates and consultancy Law Firm WhatsApp: +971555570005
Conditions shall be met in the insured risk – UAE LAW Our long experience
Conditions shall be met in the insured risk
Our long experience in handling insurance issues at Mohammed Al Marzooqi advocates and consultancy Law Firm allows us to discuss the conditions that must be met in the insured risk, which we will be discussing in details as follows;
First Condition: the Risk shall be uncertain.
The incident shall be possible, not sure to be occurred. However, the possibility is a fundamental element thereof, and the uncertain risk is realized in two forms:
1) That the risk occurrence is not inevitable. However, it is likely to occur in the future, it is not certain nor impossible, and the possibility of occurrence is what leads the parties to conclude the insurance contract, so that the insurance company will cover the losses arising from the realization of the risk if it occurred, The insurance company is entitled to insure the insured from a certain risk, and it is not logical that the insurance will prevent the risk, if so, the insurance contract is considered invalid because of its impossibility. It is worth mentioning that the insurance companies depend on the probability as a percentage in determining the insurance installment to be obtained from the insured on the basis thereof, for example For fire, theft, liability or injury insurance.
2- The danger is unavoidable, but at the time of its occurrence it is unknown.
It is not definite risk. However, it is suspended for an unknown period. For example, insurance against the risk of death. Death is one of life and the fate of every human being. , And this made the risk in this case is likely to be sure to occur. However, the date of occurrence remains unknown.
The second condition: the risk is not related to the will of one of the parties to the contract.
The logic of the idea of insurance categorically denies that the realization of the risk which is built on the basis of the expectation of occurrence is at the sole discretion of one of the parties. In the absence of the element of probability, which is the essential element of the insurance contract, the essence of insurance is the prevention of possible risks by nature or accident or the negative will of others, not at the will of one of the parties to the contract. If so, the insurance company would only have to prevent the realization of the insured risk and eliminate the possibility of occurrence, and avoid paying compensation to the insured. Which is practically rare.
The insurer is concerned with the will of the insured. He is in front of a profitable deal that will enable him to work to realize the danger and take over the compensation of the insurance company provided after realizing the danger he has created himself. This is contrary to the law. By analogy, the person can not be insured for his intentional mistakes. Which he did by his own free will. For example, the person who commits suicide after he has secured his life from the risk of death does not obtain compensation; in this case he was of his own free will.
The third condition: the risk is legitimate and not contrary to public order or morals.
The insured risk must be lawful, to be derived from an activity of the insured person that is not contrary to public order or morals
For example, we have previously stated that it is not permissible to insure a person from his intentional mistake, as that is contrary to the second condition that must be provided in the insured risk, providing that the risk shall not be related to the will of one of the parties to the contract, it becomes clear to us that there is another reason for not to insure the person of his will, because it is contrary to public order, the absence of this condition, that the risk is not contrary to public order or morality allows the person to insure his responsibility for deliberately harm people, This encourages him to harm others.
Another example is that it is not permissible to insure from financial fines or confiscation that can be criminally sanctioned. Also, it is not permissible to insure against the dangers of trafficking in the slave. If the slave trader himself is liable for any financial damage caused to him by this trade, the insurance contract is null and void for being against the public order and morals.
It is not permissible to insure against the mistakes caused by the trafficking in Hash or narcotics. If these forbidden items are confiscated and insured, the insured is not entitled to return anything to the insured because the insurance contract is invalid for violating the public order. Also it is not permissible to insure against smuggling
By light of the aforementioned we have counted the three conditions shall be met in the insured risk, the first condition the risk shall not be inevitable, The second condition is that the risk is not based on the sole discretion of one of the parties of the contract, the insured and the insurer, and the third that insured risk is not resulting from an illegal activity or contrary to public order and morality.
Attorney / Mohamed Al Marzooqi
Mohamed Al Marzooqi Advocates & Consultancy
Lawyer in Abu Dhabi, Dubai – UAE