Implications of Compulsory Car Accident Insurance Comparative Study

Nadia Yas , Et Al

doi:10.17762/turcomat.v12i2.2052

Abstract

Compulsory civil liability insurance on car accidents is one of the most important topics, which aims to achieve traffic safety and reduce car accidents. Today, car accidents constitute a great danger to human life as they cause different types of physical and moral damages. This study, however, attempts to highlight the effectiveness of compulsory insurance in providing legal protection for damages resulting from car accidents. Such protection can be achieved through the process of creating legal mechanism to enable injured people to refer to insurance companies. It is quite apparent that nobody can deny the importance of insurance and its influence on people’s lives. Insurance companies nowadays have become an essential cornerstone in the economy of any country. An insurance contract has legal consequences on the parties, which leads to corresponding obligations. These parties are committed to comply with these obligations otherwise, any violation will be treated as per the prescribed legal sanctions. In conclusion, any research or study on the compulsory insurance system whether in the Emirati law or in Islamic Sharia is highly recommended as part of the attempts to solve and rectify any legal and legitimate problems in this system. An essential objective of the Islamic Sharia is to achieve all fair interests of people. Arab and international legislation consider car insurance compulsory with some exceptions in order to compensate all those affected by a car accident. Arab and other foreign laws as well as the legitimate ones have differed in their choices of car insurance basis. Many legislations in the field of compulsory insurance have limited the right of compensation to body damage. Some other legislations have covered damages of property. Most legislations have not specified the amount of compensation that the insurer is obliged to pay in case of injury, death, or property damages. companies.

Highlights

Due to the development that all aspects of our modern life have witnessed, insurance has become an important issue, and legislators have to intervene to make it compulsory where necessary such as the compulsory car accident insurance (Peden et al, 2004)
The decision to make car accident insurance compulsory was highly required as a procedure to ensure on one hand that victims receive compensation, and on the other hand, to protect the financial liability of those who cause the damage (Peden et al, 2004).The compulsory insurance contract is governed by a bilateral relationship between the client and the company
Arab and international legislation consider car insurance compulsory with some exceptions in order to compensate all those affected by a car accident

Summary

Introduction

Due to the development that all aspects of our modern life have witnessed, insurance has become an important issue, and legislators have to intervene to make it compulsory where necessary such as the compulsory car accident insurance (Peden et al, 2004). According to article No 5 of the Law No 652, 1955, the insurer shall cover the civil liability arising from death or body injuries, which affect any person in a car accident. The date of the incident and not the date of the claim shall be deemed to protect the direct right of the injured towards the insure the insured is obliged to inform the insurer of the accident and occurrence of damage as well as of the insured’s claim for compensation. The insurance company can claim against the insured for the compensation the latter might pay to the injured in specific cases This obligation comes as a result of legislating a direct lawsuit stripped of defenses for the injured. Because cancelling the insurance document in this case is not an application of the contractual liability that requires error, damage and causative relationship

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