The Insurance of Responsibility on the International Level
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The insurance of the civil responsibility of car-owners.
Insuring the civil responsibility of car-owners, underwriter undertakes to compensate damages to third persons that resulted from the insurer’s maintenance of the automobile. On the territory of RM this kind of insurance is obligatory.
The object of insurance is a car-owner responsibility for damage to life, health and property of third persons, suffered in the result of car accidents.
Insurance agreements with car-owners registered in RM are concluded for 1 year, and with foreign owners, staying in the country temporarily – from 15 days up to 11 months. Insurance premiums are paid all at once.
Insurance reimbursement is paid at the rate of actual damage, confirmed by corresponding competent bodies and documents about losses suffered by victims.
In case of causing bodily injuries or death of the victim, insurance compensation is not limited by the maximum rate, independently on the number of the victims suffered in the result of one car accident.
The insurance compensation for the damage to life or health of the victim includes:
- spent earnings for the period of temporary disablement and in consequence of disability;
- additional expenses for buying medicines, prosthetic appliance, care, transport expenses;
- part of earnings, that in case of death of the victim his dependent disabled persons lost;
- expenses for burial.
In case of damage or destruction of the estate in the result of car insurance reimbursement is fixed depending on the actual damage expressed in money, according to the current exchange rate taking into consideration the depreciation and is limited by 10 000 minimal salaries.
The insurance compensation for damage to the property of third persons includes:
- expenses in connection with the loss of the estate;
- expenses on the reconstruction works of the estate;
- transport expenses of the suffered and expenses for taking the damaged transport in tow.
In case of causing bodily injuries or death, the compensation is paid only to those suffered persons that were outside the transport, which caused the accident.
“Green card” is an agreement that forms a special group of international agreements about the insurance of the car-owners’ responsibility. The main elements of “Green card” system are national bureaus of countries – participants of the agreement. The control under the fulfilment of the car-owners’ responsibility insurance in the international auto communication is made through these bureaus. As a rule, this control is made at the equipped frontier crossings.
The National Bureau together with the insurance companies decide questions of how to settle the claims submitted by third persons concerning the insurance cases inside the country and abroad. The National Bureaus are united into the International Bureau of the “Green card” (head-quartered in London), that coordinates their activities.
The insurance of the civil responsibility of carriers to passengers.
Carrier is a transport enterprise that issues the transportation document and performs the carriage of goods and passengers. The carrier is responsible for the property damage, resulted from the infringement of the rules or the agreed conditions of the carriage.
The suffered persons are paid the compensation by that sum of money that was exacted on the civil claim.
Insuring the responsibility of the air-carriers the insurers are those persons that run the air transport belonging to them.
The injury is understood to be as death, bodily injury or the damage caused to the property of third persons out of the air transport and on the land.
The matters of the civil responsibility of the air-carrier are regulated by the rules of the International air-rules, particularly by Rome Convention about reimbursement of the damage, caused by foreign airplanes to third persons. According to the insurance contract of the carriers responsibility the underwriter pays that sum of money that the insurer is obligatory to pay according to the law as the compensation for causing bodily injuries or causing the damage to goods or to the property of the third persons in the result of the insurance accident.
As to the sea-transport the insurance of the ship-owners’ responsibility that is considered as an independent branch of the insurance is made. This insurance stipulates the liabilities of the ship-owner connected with the harm caused to life, health of the passengers, to the crew, dockers in the port and so on. The damages caused to the property of the third persons are also the obligations of the insurance. This property are: other vessels, goods, personal things of the vessels crew, passengers or other persons and port installments.
The insurance of the ship-owners’ responsibility is effected through the clubs of the mutual insurance. At present, there are about 70 of such kinds of clubs in Great Britain, Switzerland, Norway, USA.
The insurance of the auto-carriers responsibility on the auto-transport is made in case of damages connected with the transportation of goods or passengers. The conditions of the auto-carriers’ responsibility are determined by the legislation of every country and rules of the international laws, established by the Convention about the international carriage of goods by roads.
The contract of the insurance of the auto-carriers responsibility in international transportation includes the following risks:
- the responsibility of the auto-carrier for the damage to or loss of the goods in transit and for losses resulted from these accidents;
- the auto-carrier’s responsibility for the financial losses of the clients;
- the auto-carrier’s responsibility to customs bodies;
- the responsibility to the third persons in case of damaging the goods.
The insurance of the civil responsibility of the enterprises –the sources of high danger.
In this kind of insurance, the responsibility is understood as the obligation to reimburse the damage, caused to the owners of the enterprises or the third persons.
The subjects of the civil insurance responsibility of the enterprises are the causes of harming the person (death, injury and other body injuries) and the damage caused to the property.
The risks connected with the usage of the transport by the enterprise that can be insured on separate kinds of the insurance are excluded from this kind of the insurance.
The insurance agreement is concluded after detailed studying of a concrete risk. The limit of the insurance responsibility is usually established.
The sum of the insurance premium depends on the volume of the responsibilities undertaken by the underwriter, the number of the insurance risks, the limit of the insurance responsibility, the period of the insurance and other factors.
The insurance reimbursement can not exceed the stated limit of the responsibility and the volume of the damage caused to the consumer (third persons).
Concluding the insurance agreement for 1 or more years the insurer is usually granted the right to pay the insurance premium by instalments.
Under this kind of the insurance the following things are compensated:
- expenses connected with the compensation of the damage caused to the suffered and additional expenses in the result of the damage or loss of its property;
- harm caused to his health or life;
- missed profit;
- moral harm;
- losses of the insurer connected with court expenses during considering his case about the reimbursement of the damage;
- expenses of the insurer to liquidate the accident’s consequences, connected with the cleaning of the polluted territory;
- expenses of the insurer to hold an independent expertise.
The insurance of professional responsibility.
The insurance of the professional activity unites the insurance of different persons who, while performing their professional activities, can damage the third persons. The object of the insurance are: the property interests of the insurer connected with the responsibility for the harm caused to the third persons in the result of the mistake during the fulfilment of the professional liabilities.
The insurance risks are carelessness or mistakes during conscientious and competent fulfilment of their liabilities. The insurer’s competence must be confirmed by the corresponding documents. From the volume of the responsibility the intentional actions of the insurer are excluded.
According to the insurance of the professional responsibility two groups of risks can be insured:
- The risks connected with the possibility to make body injuries or to harm the health. These cases are met in the practice of surgeons, dentists, and so on.
- The risks connected with the moral damage.
In case of damaging the client, the suffered has the right to make a claim from the moment when the consequences of the caused damage were discovered. The period of claim duration makes 15 years from the date of causing the damage and 3 years from the date of discovering hidden consequences of the caused damage.
The responsibility of the underwriter on all the damages appeared during the process of the Policy can not exceed the certain limit. The rate of the premium depends on the profession, age, the length of service, the date of receiving the qualification, the total number of the employees and so on.