Insurance On Right Of Others And Its Conditions According to the Emirati Civil Law and As Amended

Insurance On Right Of Others And Its Conditions According to the Emirati Civil Law and As Amended

Insurance On Right Of Others And Its Conditions According to the Emirati Civil Law and As Amended

Agreement of the person for insurance on his life is a main condition for this type of insurance, as insurance on other’s life becomes void if this person does not agree to insure on his life in written and before entering the contract. In case he lacks capacity, insurance on his life is conditional on agreement of his legal representative.
The conclusion is that if a person insures on life of another person for his benefit or for benefit of another person, the insurance contract will not be true except with agreement of these two parties and agreement of the insured upon person. That is because insurance on a person’s life without that person being a party in the contract makes his life under speculation as his life produces entitlement of the insurance amount and this makes his death a benefit for a beneficiary and this pushes this latter to assault him, therefore law stipulates agreement of the insured upon person for validity of the insurance contract.
The insured upon person could be minor or incapacitated, and in this case agreement of the guardian, custodian or caretaker is required, means who represents the insured upon person.
Agreement, whether issued by the insured upon person or his legal representative, it must be written. Writing here is a condition for entering not for proving, as the verbal agreement is not enough even if proved, and any writing is enough. It is not stipulated for writing to be official and the agreement must be issued before entering the insurance contract. The insured upon person can sign the insurance application, and in this case the agreement is before entering the contract. The agreement of the insured upon person could be issued in an independent document from the insurance application, provided its date is before date of the insurance contract. The insured upon person signing an insurance document is not considered approval before entering the contract. It is contemporary, so it is not considered.
In case agreement of the insured upon person was not issued or issued without fulfilling the previous conditions, the insurance contract would be void absolutely, and any beneficiary can assert its voidance, and the court can rule with that. Authorization does not correct voidance, if the agreement was issued after entering the insurance contract, fulfilling the conditions, it would have no effect and the insurance contract would remain void.
Agreement of the insured upon person as aforementioned is not necessary only for validity of the insurance contract, it is necessary also to appoint the beneficiary if the insurance for benefit of others. It is necessary as well for validity of the beneficiary assigning his right in benefit from the insurance to another person with consideration or without consideration, or mortgaging this right at another person. All this is for the same considerations which require agreement for validity of the insurance contract. The beneficiary’s right transfer into another beneficiary or confirmation of a mortgage to another person makes that other person have benefit in death of the insured upon person. Therefore, agreement of the latter on assignment or mortgage is a must.

Attorney / Mohamed Al Marzooqi
Mohamed Al Marzooqi Advocates & Consultancy
Lawyer in Abu Dhabi, Dubai – UAE

“Insurance On Right Of Others And Its Conditions According to the Emirati Civil Law and As Amended”