Contract liability insurance: procedure, conditions, documents and recommendations

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In the modern world, insurance claims, related concepts and laws, as well as the nuances of civil insurance require special attention. It is important not only to understand what is reflected in the content of a civil liability insurance (CL) agreement, but also to distinguish between the features inherent in various cases and types.

In addition, the composition of the package of required documents and the procedure for concluding an agreement are equally important information, so it should be freely available to every citizen. What does contractual liability insurance mean?

What is civil defense insurance?

The main distinguishing feature of such agreements formulated on the basis of civil defense insurance is that the subject matter on which the agreement is concluded is of a property nature.

In this practice, there is an immutable postulate, it is also the basic rule - if a person has caused damage, be itproperty or physical, caused harm to the injured party, then it is obliged to fully compensate for the losses and losses incurred. For this, liability insurance is provided under the contract.

Refund Items

• Property expenses of the injured party. This article includes absolutely all property and financial coverage claimed by the injured party in order to restore or return in full, or repair property that was damaged by the culprit. This is called covering the real damage caused to the victim by the perpetrators. For example, this provides for a contract of compulsory insurance of civil liability of the owner of a car.
• Legal expenses incurred by the victim. Includes the money that the person who suffered the loss of rights spent to restore them. This may include, for example, costs resulting from the recall of goods or services, various legal costs.
• Income received by the victim. If the property that suffered as a result of the actions of the perpetrator brought income to its owner, then the perpetrator is obliged to compensate the amount of the benefit that was lost for a specific period and under certain conditions. This procedure is clearly stated in the fifteenth article of the Civil Code of the Russian Federation.
• Compensation for harm that was caused to the he alth and life of the victim.

It is worth noting that liability insurance under the contract in this case will apply not only to actions that are destructive (destructive) in nature, but also to casesinaction that results in damage to the victim.

Classification of liability

Civil liability is divided into two components: contractual and non-contractual.

In a contractual case, the rules, obligations and liability, as well as punishment for non-compliance, which are spelled out in the text of the relevant contract, are subject to regulation.

GO of a contractual type is limited by the rules of insurance and the procedure, or liability provided for by law or by personal agreement of the parties to the contract. The terms of the liability insurance contract will be discussed below.

That is, there are two options. First: the framework within which the contract is executed is regulated by legislative forms and legally limited limits of liability. The second option: the two parties to the contract independently agree on the scope of responsibility - who, how and for what will be responsible.

All agreements regulated by the contract must be clearly spelled out, all terms, amounts and rights must be fixed.

The non-contractual form of civil defense (it is also called tort) is regulated only by law and other regulatory legal acts.

The most common is contractual liability insurance.

It should be noted that there are different liability regimes. For example, there are different types of lawsuits, depending on whether contract or tort is used:

• By conditionorigin of damage.
• By statute of limitations.
• On the burden of proof.
• By the absence or presence of compensation for moral damage.
• Other modes. Such a distinction between civil defense is a necessity in case an illegal action occurs related to obligations under the contract.

An example is the case when a passenger who has suffered from the actions of the carrier has the right to independently choose the mode of judicial execution and the type of statement of claim.

Why might you need to conclude a liability insurance contract?

Features

The Civil Code of the Russian Federation fixes some features that accompany the operation of a civil defense insurance contract. This is detailed in the 48th chapter, in article No. 932:

1. Only one single policyholder can insure against the risk of liability that may arise for breach of contract.
2. The beneficiary may also be insured. At the same time, it does not matter whether this is fixed in the contract or not, in whose favor it was concluded (in favor of the insured, beneficiary, other persons, in no one's favor).
3. The insured risk of liability arising from breach of contract is provided for by law.

Types of contracts

Currently, there are a number of the most common insurance contracts, which reflect various cases of an insurance nature and civil liability that differs from other typesresponsibility.

Types of liability risk insurance include:

• Insurance of civil defense developer.
• Tour operator.
• Car owners. This is a vehicle owner's liability insurance contract.
• Freight carriers or passenger carriers.
• Injury liability insurance contract.

In the process of considering the features of insurance for various reasons and civil defense, it will not be superfluous to pay special attention to each of the above types of contract.

Insurance contract of civil defense developer

In accordance with the amendments adopted in the Federal Law, developers must fulfill certain obligations regarding the transfer of residential premises to those participants who appear in the concluded agreement.

Providing some type of collateral is such an obligation. There are several ways to choose a deposit:

1. Bank guarantee.
2. Contract of civil liability insurance of the developer against the risk that may arise due to default.

In this case, the insurance contract will need to be concluded even before all the necessary documents are submitted under the shared construction agreement or other construction contract with Rosreestr.

When concluding such an agreement, the object of insurance will be the property interests of the insured (in this case, the developer), which are inextricably linked with the interestsbeneficiaries, that is, participants in shared construction.

An insured event is the developer's failure to fulfill its obligations to rent out housing to participants in a shared construction agreement. In this case, all insurance amounts and losses must be calculated in accordance with the shared construction agreement.

Contract of compulsory insurance of civil liability of the tour operator

If we talk about the contractual relationship regarding the travel contract, and the default by the tour operator (which is in this case the Insured), then the clients of the firm (who are the beneficiaries) are en titled to submit written claims for covering all expenses incurred, including number and cost of the tour itself.

In this case, Federal Law No. 132 acts as the governing legislative act, fixing the basics of tourism activities, as well as the rules for civil defense insurance.

In the case of insurance of the tour operator's civil liability insurance risks may be:

• Losses that arose as a result of complete non-fulfillment or improper fulfillment by the Insured of his obligations.
• The presence of unspecified situations in the tourism product.
• Violation of measures to ensure the safety of the client of the tour operator during the organization of the trip or directly in the process of the trip.

Under this agreement, the insurance compensation includes the amounts fixed by the tour operator's liability insurance contract, as well as compensation for the damage actually caused to the beneficiary.

Insurance civil defensevehicle owners

In accordance with the legislation that is currently in force in the territory of the Russian Federation, each owner of a vehicle or owner of a taxi fleet is obliged to conclude a compulsory insurance contract with an insurance contract, aka OSAGO.

This type is the most common on the market for such services today. The main insured events under the OSAGO agreement include:

• Damage caused to a passenger or other vehicle as a result of an accident.
• Damage to property, excluding damage to the he alth of the victim.
• No more than two vehicles are involved in an accident. All this is provided for by the contract of compulsory liability insurance of vehicle owners.

Both vehicles involved in an accident must have OSAGO policies.

Carrier's civil liability insurance contract

In this case, the carrier's liability is regulated by Federal Law No. 67. In accordance with this law, all legal entities, firms, enterprises, organizations providing services for any type of transportation are required to insure their civil defense if they carry passengers.

With the exception of the subway and passenger-type taxis, the law obliges carriers operating the following modes of transport to insure their passengers:

• Railway. Moreover, insurance is provided for transportation to absolutely any distance. Also regulated by the Charter of railway transport.
• Air. Insurancenecessary for transportation over distances of any distance, including by helicopters. This activity is regulated by the Air Code. What else do you need a civil liability insurance contract for vehicle owners?
• Marine. The activity is regulated by the Maritime Navigation Code. When it comes to transporting goods.
• Internal water. Control is carried out on the basis of the Inland Water Transport Code.
• Ground. This category includes trams, buses, trolleybuses, metro, monorail transport. Regulation is carried out on the basis of the Charter of Road Transport and Urban Surface Electric Transport.

Public liability insurance contract for damages

The Civil Code of the Russian Federation and the law on insurance contain provisions on liability, which can be included in the contractual and tort form of regulation of compensation for insured events. Namely:

1. It is allowed to insure the risk of civil defense of the insured himself in accordance with the contract in which he bears certain obligations in case of harm or damage to other persons.
2. The contract must necessarily specify the one who is responsible. Otherwise, all responsibility will fall on the insured.
3. A civil defense insurance contract for damage or harm is always considered concluded in favor of the victim. Regardless of whether you have insurancepolicyholder.

What else can be a compulsory liability insurance contract?

Third Party Insurance

If we consider this type on the example of an agreement relating to construction and installation work, it will become clear what constitutes civil defense insurance to third parties.

In this case, the contract may be concluded by the developer, who will be the first insured, the main contractor, who will be the second, and the person who is directly insured and acts as the beneficiary.

The object can be both property interest and damage, harm that may be caused to third parties during construction and installation work, or work related to commissioning.

In this case, insurance risks are recognized:

• Harm caused to the he alth or life of third parties.
• Damage to third party property.
• Prisoners in one case harmed property, he alth and life of third parties.

Required documents and order of registration

Insurance of any type of civil defense is always carried out in accordance with a certain procedure.

This procedure is regulated by the code of insurance rules. They include:

• You must submit a written application that will contain a request for the provision of insurance services. After that, a meeting of the two parties takes place to carry out negotiations, in which everything is discussed withoutexclusion obligations and conditions. At the same time, the representative of the insurance company is obliged to inform the citizen about all the conditions, possible risks, and privileges specific to each of the products offered.
• In accordance with the principle of good faith in the insurance industry, a person or organization providing such services must notify its customers of the terms of the contract honestly and in full.
• After discussing the terms, the agreement reflects the will of the policyholder.
• The contract must contain such information as the last name, first name, patronymic and contacts of the policyholder.
• The amount of risk insurance for causing property damage must be agreed and indicated.
• It is also necessary to indicate the period of insurance, premiums, type, as well as the method in which contributions will be made.
• A separate item should indicate cases that are not insured, and upon the occurrence of which compensation will not be awarded.

Thus, civil defense insurance is a certain coercive measure at the state level, which is used when there is a violation of rights and there is a need to restore them when damage or injury has been caused and needs to be repaired.

This is why the legal framework is so important. It is designed to regulate the implementation of certain measures aimed at meeting the needs of the injured person at the expense of the violator or perpetrator,harmed him.