By Dr Nizar Kochery/Doha
Question: What are the claim limitations in a fire accident insurance? Are they limited to the actual loss due to fire or extended to other damages?
Answer: According to Article 803 of the civil laws, in fire insurance the insurer shall be responsible for all damages arising from the fire or from the start of a fire that can become a complete fire or for a fire risk that can materialise. Its liability shall not be limited to the damages arising directly from the fire but also covers the damages that arise as an inevitable result thereof, particularly the damages caused to insured property by reason of using methods of rescue or of prevention of the extension of fire. It shall also be liable for loss or disappearance of insured items during the fire unless it proves that this has taken place as a result of a theft even if there is an agreement to the contrary.
Firm with 100% foreign ownership
Q: We understand that a new foreign investment law is in discussion. However, it is noticed that a few companies own 100% ownership currently. Can a construction company be established with 100% total foreign ownership without including a Qatari national as partner for a project currently? We are a foreign company mainly into scaffolding business and we have been awarded a tender in Qatar. For the execution of project, is it possible to establish our company with the same shareholders as in our main company? Please advise.
A: Under Article 3 of the Foreign Investment Law – Law No.13 of 2000, a foreign company can open a temporary branch office in Qatar if the company is awarded a specific contract involving a project that contributes to public service or interest. In this situation, the Minister of Economy and Commerce can license the foreign company to conduct business in Qatar for the specific purpose of completing the contract. The licence to operate the temporary branch office will expire once the contract is completed. A foreign company can open a representative office by filing an application at the Ministry of Economy and Commerce.
An offence under the penal law
Q: I had some issues with my colleague in relation to execution of certain things. We had strong arguments on that issue and he has insulted me in front of others in the office. One top of that he had also damaged some of my personal property. If I approach the police, what will be the action initiated against him for such acts? Please advise.
A: The offender shall be punished according to Article 389 of the penal law. As per the provisions of penal law, any person, who intentionally destroys, damages or spoils, another person’s movable or immovable properties, or makes them unusable, invaluable, useless or invalid, shall be punished with imprisonment for a term not exceeding three years and/or a fine not exceeding QR10,000. Punishment shall be imprisonment for a term not exceeding five years if the offence is committed by a minimum of three people.
Stipulation of two-year ban
Q: As per the new law on immigration, there is no two-year ban limiting a person from obtaining the work visa. But in my new employment contract, there is a restriction clause which does not allow to take up a job with any competitor. While the two-year ban has been removed from the law, is it legal to restrain an employee with such clauses in contract? What is the legality and which law empowers the clause? Please advise.
A: Though Law No. 21 of 2015 has abolished two-year ban on employees to obtain work visa, the restrictive covenant preventing the employee from working with competitor still exists. According to Article 43 of the Labour Law – No. 14 of 2004, if the nature of the work allows the employee to become acquainted with the clients of the employer or the secrets of the business of the establishment, the employer may stipulate that the employee shall not compete with him or participate in any undertaking competing with him after expiry of the contract. The period of such undertaking shall not exceed two years. Such stipulation shall be valid only if it is restricted as to place and to type of the work to the extent necessary to safeguard the employer’s lawful interests.
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