Object and subject of insurance: basic concepts, classification of insurance

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

In contractual relations, legal practice, civil legal relations, the concepts of "object" and "subject" are often encountered. Insurance is the same wide area of relationships, but not legal, but commercial. Therefore, in the same way there are participants in these relations with their expectations and interests. What should be understood as the object and subject of insurance?

What is the subject of insurance?

A subject is, first of all, an active participant in any process, a performer of any activity, carrying out actions to obtain any result.

For example, in the legal sphere, the subject is a person with a physical or legal status, having rights and obligations.

In insurance, such a participant will be the insurance company (insurer) itself, carrying out insurance activities. However, it is known that for the emergence of commercialRelationships require at least two parties. Another active party in insurance is the insured and the beneficiaries. They will also act as subjects.

What is the object of insurance?

The object is usually what the action or some activity is directed at, it is passive. The object is inextricably linked with the subject. The activity of the subject is precisely aimed at the passive object.

In law, the object is a set of various benefits, in relation to which property or other legal relations may arise.

In insurance, the object will be material interests, to which, in fact, insurance is directed. This is the interest of the insured in insuring a particular risk. The definition of “property interests” is more common.

What is the subject of insurance?

Thus, it is clear what the subject and object of insurance are. The subjects of insurance are the direct active participants in the transaction, the object is what the activities of the subjects are aimed at - the property interests of the insured and the beneficiary. What exactly do we insure? What exactly is insurance protection aimed at?

There is another essential concept in insurance - the subject of insurance. It is something tangible, with which insurance is directly linked. After all, it is impossible to insure property interests by themselves, they must be connected with something, more precisely, against damage or disappearance of something.they may arise in the future. The subject of insurance is what the insurance company takes for insurance.

Related concepts and terms

Insurance (or property) interest is the costs that do not yet exist at the time of insurance, which the insured or beneficiary has the risk of incurring in the event of an insured event associated with the death or damage of the subject of insurance. With regard to the concepts of the object and the subject of insurance, this is the object to which the activity of the subject is directed.

An insured event is an event that may occur with a certain degree of probability against the will of the insured and the insured, prescribed in the insurance contract. When it comes, the UK pays money in the form of an insurance payment.

Insurance payment is the amount of money that the insurance company pays to the insured or beneficiary under the insurance contract upon the occurrence of an insured event in the amount of the agreed sum insured.

Sum insured - the amount of the insurer's payment established by the contract in each individual case upon the occurrence of one or another insured event.

Insurance classification

There are many types and forms of insurance, below are the main ones:

1. Based on the intention and need for insurance, there is compulsory and voluntary insurance.

With compulsory insurance, the state is the initiator, creating mandatory insurance requirements at the legislative level. Examplessuch insurance are compulsory third party liability insurance (OSAGO), compulsory medical insurance (CHI).

With voluntary insurance, the decision on the need for insurance is made by the insured, if he has such a need.

2. According to the subject of insurance and the criteria of property interest, there are personal, property, risk insurance, as well as liability insurance.

Personal insurance is aimed at insuring the life and he alth of a person, can be short-term (up to 1 year) and long-term (up to 25-30 years), can be combined, including a funded component. He alth insurance also falls into this category.

Property insurance is aimed at neutralizing the material consequences of risks associated with damage or loss of property (real estate, cars, etc.).

Risk insurance covers financial risks, such as non-performance of contractual obligations in commercial transactions.

Liability insurance covers damage to third parties in case of fault of the insured. A striking example is the well-known mandatory type of OSAGO insurance.

The concepts of the subject, object and subject depending on the types of insurance

Depending on the type of insurance, the defining concepts also change. Each type has its own subject, object and subject of insurance. Although with a small caveat - subjects from the speciesinsurance do not change, except for the form of ownership (legal or natural persons) and the composition of participants.

So, the subject, subject and object of compulsory OSAGO insurance will be:

• self liability to third parties (subject);
• insurance company, policyholder injured in an accident through the fault of the policyholder (subjects);
• property interest in covering the costs of the victim in an accident by the insured (object).

Moreover, the property interest is not the owner of the car that suffered in an accident, but the insured as the culprit of this accident.

The subject, subject and object of compulsory he alth insurance are:

• insured person and his he alth (subject);
• insurance company, state or enterprises (subjects);
• property interest in the form of receiving free medical care (object).

In voluntary life and he alth insurance, the subject will be the insured person and his life and he alth, the subjects - the insurance company, the insured and beneficiaries, the object - the property interests of the insured and beneficiaries associated with the death of the insured person or loss of he alth. Subjects and objects of he alth insurance in voluntary types will be the same.

In property insurance, the subject will be buildings, houses, apartments, and the object will be the property interests of the insured associated with their destruction or damage.

Subject, subjects and objects of social insurance –insured persons whose circle is determined by law (subject); social insurance fund, state, budgetary and private employers (subjects); material interests of the insured and their family members in the event of occurrence of events, the list of which is determined at the legislative level (object).

Conclusion

Thus, it is clear that there are significant differences between the concepts of "subject", "object" and "subject" of insurance. The primary subject is what insurance protection is aimed at, what determines the need for insurance in general. For example, when there is a house or a car that the policyholder values, then the object of insurance arises. Namely, property interests or, more simply, potential losses that may arise in connection with damage or destruction of this property. And only then we can talk about the subjective components. Since demand creates supply, and not otherwise.