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Insurance Claims - Dubai Court Rules Court Clarifies on Salary Payment


Injured on job? Full salary for 6 months, 

From 24/7


Dubai Court of Cassation, in its judgment, said in this particular case there was no report submitted which could help calculate what the company paid during the period of treatment to the driver. (File)


If an employee is injured while on the job, the employer is obliged to pay full salary for six months. And if the period of treatment exceeds six months, the employer ought to pay half the salary, said Dubai Court of Cassation in a new principle.

The court stated that in such cases – which involve either employees or insurance companies - the employer is obliged to make the payment after receiving medical report from the treating physician.

Dubai Court of Cassation issued the new principle while accepting an appeal by an insurance company against the judgment of Court of Appeal.

Appeals Court had ordered the insurance firm to pay Dh162,000 to a company, which had paid its driver who was injured in a road accident while he was driving the company vehicle.

The company sued the insurance company and requested the Court of First Instance to compel the insurance company to pay Dh162,000. The company based its claim on the fact that the driver was hit by a public transport bus, which was insured by the insurance company (respondent).

While the bus driver died in the accident, the company driver was injured.

The court commissioned an expert to prepare a report of the company's losses, following which it issued a verdict asking the insurance company to pay Dh90,000 to the affected company.

However, the plaintiff (company) appealed the judgement before the Court of Appeal, which amended the verdict given by the Court of First Instance and asked the insurance firm to pay Dh162,000.

The insurance firm did not accept the judgement and challenged it before the Court of Cassation.

The Court of Cassation based its judgment on Articles 144 and 147 of Labour Act 8 of 1980. While Article 144 establishes the rights of employees injured at work, Article 147 states that the medical report from the treating physician should cite details of injuries; the degree of impairment sustained by the employee as well as treatment procedures required. It also stipulates that both the employee and the employer should submit reports.

Dubai Court of Cassation, in its judgment, said in this particular case there was no report submitted which could help calculate what the company paid during the period of treatment to the driver. Also, the company had not provided the amount of monthly salary of the injured employee, which meant that the verdict of the Court of Appeal was incorrect.

Thus, the Court of Cassation accepted the appeal by the insurance firm.