Types of Insurance contracts

National Technical University

“Kharkov Polytechnic Institute”

 

 

 

 

 

Report

 

The subject: Finances

 

Types of Insurance contracts

 

 

 

 

 

 

 

 

 

Student: Frolova J.S

Teacher: Parzirnaya A.L

 

 

 

                                      

 

Kharkov 2012

 

Content

 

 

1. Form and conditions of insurance contract

 

The contract of insurance is the legal fact generating the insurance obligation. The insurance contract, or the insurance contract — this agreement between the insurer and the insurer that the insurer undertakes to make insurance payment to the insurer or other person in favor of which the insurance contract is signed at insured event, and the insurer undertakes to pay insurance fees (insurance premium) in established periods.

The insurance contract, as well as any other contract, is made as a result of a mutual consent of the parties, coincidence their will. Thus the agreement should be reached according to all essential contract provisions and is expressed in a form demanded by the legislator. Insurance companies at the conclusion of contracts of insurance with the clients usually apply the standard forms of contracts developed by them on otkdelny types of insurance. Such contracts reflect conditions of rules of insurance on the basis of which insurers have the right to sign insurance contracts according to the issued license more often.

The insurance contract as any transaction, should answer the general conditions of validity of the transactions, the provided civil legislation. The contract of insurance can be concluded as by drawing up of one document signed by the parties, and by an exchange of documents by means of the mail, cable, teletype, telephone, electronic or other service allowing authentically to establish that the document proceeds from the party under the contract

At the conclusion of the contract of property insurance between the insurer and the insurer the agreement should be reached:

About a certain property or other property interest being object of insurance;

1) about character of an event on which case of approach (insured event) insurance is carried out;

2) about the size of an amount of coverage;

3) about period of validity of the contract.

At the conclusion of the contract of personal insurance between the insurer and the insurer the agreement should be reached:

1) about the insured person;

2) about character of an event on which case of approach in life of the insured person (insured event) insurance is carried out;

3) about the size of an amount of coverage;

4) about period of validity of the contract.

Legal value of essential conditions consists that absence at least one such condition doesn't allow to consider the contract concluded. Conditions on which coordination one of the parties insists belong to number of the essential also. Insignificant it is possible to consider, for example, such conditions:

1) amount of insurance payments;

2) order of payment of insurance fees;

3) consequences of failure to pay of contributions;

4) an order of the introduction of the contract in force;

5) order of definition of a damage, payment of an amount of coverage etc. 

There is one easily remediable mistake which should be met in insurance contracts. As a rule, they standard, i.e. the text of the contract are developed in advance and left blank spaces for a specification of some conditions. These blank spaces, undoubtedly, just also are those conditions concerning which according to the statement of one party – in this case – the agreement should be reached the insurer. In many contracts some of these blank spaces aren't filled or the crossed out section from which it is difficult to understand will of the parties is put. This negligence at desire can easily become the basis for contract recognition unconcluded.

 

 

 

 

 

 

 

 

2. Types of contracts of insurance

 

Let's dwell upon separate types of insurance and we will consider features of drawing up of contracts of each of these types. Types of insurance are classified as follows:

1. Obligatory insurance.
2. Personal insurance
3. Property insurance.
4. Responsibility insurance.

2.1. Obligatory insurance

 

Obligatory insurance is applied when participation of insurance company in compensation of a damage represents public interest. In this case degree of freedom of the parties of the contract of insurance is essentially limited. Instead of the right to the conclusion of the contract the insurer has a duty it to conclude, and at the insurer – to accept risk on insurance. Emergence of such duties possibly only in the cases provided by special federal laws, establishing an order and conditions of carrying out types of obligatory insurance. The most striking example of obligatory insurance is obligatory medical insurance, According to the Law, at the appeal to medical medical institutions receiving medical care according to the list and the volume established by territorial programs of obligatory medical insurance is guaranteed to citizens.

First of all, it is necessary to decide on subjects of obligatory medical insurance:

• ü as insurers the legal entities signing contracts of insurance and paying insurance fees act: at insurance of the idle population – the state in the person of local authorities, at insurance of the working population – legal entities irrespective of form of ownership and an organizational and legal form;
• ü the insured persons – individuals in favor of whom the insurance contract, i.e. all citizens of Ukraine, and also the foreign citizens who are constantly living not territories of Ukraine is signed;
• ü insurers – the medical insurance companies having the state license for the right of carrying out obligatory medical insurance;
• ü and also, the medical institutions having the license for the right of rendering of medical care and services according to the territorial program of obligatory medical insurance.
• ü the insured persons – individuals in favor of whom the insurance contract, i.e. all citizens of Ukraine, and also the foreign citizens who are constantly living not territories of Ukraine is signed;.

This contract defines the transaction between the insurer and the insured according to which the insurer undertakes to organize and finance granting of medical services to workers of the insured, for what last undertakes to list insurance payments (at a rate of 3,6 % from a wages fund). But the insurer, certainly, itself doesn't render medical services, and concludes contracts with medical institutions. In the appendix the example of such contract (the Contract №3) is resulted.

Relations between medical institution and the insurance medical organization are under construction on the basis of the contract on granting of the treatment-and-prophylactic help. A contract integral part is the list of services rendered by establishment. The medical institution hasn't the right to refuse to the insurance medical organization the conclusion of the contract concerning the citizens insured by it who according to the confirmed order of the organization of medical aid have the right to service in this establishment.

The insured citizens are obliged to have the policy of obligatory medical insurance which is nominal, on it the insurance medical organization and medical institutions in which the insured person has the right to medical aid reception should be specified. The policy should be shown by citizens each time at the reference behind medical aid reception.

2.2. Contract of personal insurance

 

According to the Law on insurance contracts of personal insurance can consist in the relation of property interests of the citizens connected with life, health, work capacity and provision of pensions. One of the most mass types of contracts of insurance concluded with insurers, contracts of the mixed life insurance are. It means that in the conditions of one contract the insurance covering is provided several incompatible risks. Traditionally such contract provides to the insurer an insurance covering on a death case from any reason during period of validity of the contract, at a attaining the age before the termination of term of the contract and in case of infliction of harm to health from accident consequences.

Apparently, the given contract generates the double obligation: the insured – to pay an insurance premium, and the insurer – after approach of the insured events rigidly regulated by the contract, to pay specify in the contract the insurance sum to the insured person or beneficiary. The list of risks under such contracts of insurance can be wide enough. The example of the "combined" contract of insurance, however the contract have been above resulted can be concluded and for one group of risks, for example, insurance upon accidents or illnesses, including risk of the reference insured in medical institutions (medical insurance).

Unlike obligatory insurance the insured is not obliged to conclude the contract. However, it has a right to conclude the similar contract simultaneously in the several insurance organizations. Besides, the similar contract can be concluded even if the insured risk is included into the list of risks under the contract of obligatory state social insurance.

Under the law the life insurance contract can't be concluded for the term of less than 1 year.

2.3. Contract of property insurance

 

Group of companies subdivides property insurance into three under - branches:

1) risk of loss (death), shortage or damage of a certain property;

2) risk of responsibility according to the obligations arising owing to infliction of harm of life, health or property of other persons, and in the cases provided by the law, also responsibility under contracts – risk of a civil liability;

3) risk of losses from business activity because of violation of the obligations by contractors of the businessman or change of conditions of this activity on circumstances not depending on the businessman, including risk of non receipt of the expected income – enterprise risk.

However, in the Law on insurance insurance of responsibility is taken out separately owing to the complexity and originality. Really, insurance of responsibility has many lines separating it from insurance of property therefore on insurance of responsibility it is necessary to stop separately.

As to property insurance, within it it is possible to allocate the following under - branches:

1. Insurance of means of land transport. The insurer undertakes to pay full or partial compensation of the damage put to object of insurance in the contract.

2. Insurance of means of air transport. Object of insurance are property interests of the person about which insurance the contract, connected with possession, using and the order the aircraft, owing to damage or aircraft destruction is signed.

3. Insurance of means of a water transport.

4. Insurance of other types of property, that is, actually any property.

5. Insurance of financial risks. This group of risks is understood as loss of the income or expenses of the person about which insurance the contract owing to loss of work, stops of production, bankruptcy, default of contractual obligations, court costs etc. is signed.

Signing the contract of property insurance, it is necessary to know that if in it strictly certain insurance events, the event which has caused a damage which is not getting under such definitions are listed, isn't insured event even if it possesses all signs of risk of common concept similar to definition.

Despite publicity of the contract of property insurance, the insurer can refuse to sign the contract if the property is in an accident condition that should be fixed in insurance rules.

As in other types of insurance, upon insurance the policy can be given out. Besides, at property insurance by an integral part of the policy there can be such documents, as: "Calculation of an insurance premium", "The description of the insured object", "The inventory of the insured property", etc.

 

 

2.4. Contract of insurance of responsibility

 

In the Law on insurance by one of objects of insurance the property interests not contradicting the legislation connected with compensation by the insurer of harm caused to them to the personality or property of the individual, and also the harm caused to the legal entity are called also. 

It is possible to carry the following to characteristics of this contract:

• Ø Under the contract of insurance of responsibility the beneficiary is in advance unknown. Any person can be it, including and legal to which the insurer caused a damage and which had an obligation according to the current legislation to indemnify this loss. Thus there is a new design of the contract in favor of the third party.
• Ø As the amount of damage is in advance unknown, and in the contract it is impossible to stipulate it. However, in it the top limit of the sum (is specified by item 1.1.) or "responsibility limit".
• Ø Under the contract the fact of approach of insured event admits on the basis of "the proofs provided to the insurer". It can be both the resolution of judicial authorities, and voluntary recognition of the insurer.

 

Conclusion

 

As the conclusion it would be desirable to give the wishes concerning, on the one hand, problems of legislative regulation of insurance activity, and on the other hand, literacy and a correctness of use of these laws in practice.

  Certainly, the modern system of the right is still far from perfect. The main document regulating system of insurance, the Civil Code is. In the majority of its articles there is a reference to laws and other regulations which should place finally all points over "i". However often demanded statutory act simply is absent that does senseless the corresponding norm of group of companies. Besides, different laws often contradict each other as, for example occurred to an exception of the Law on insurance of chapter concerning the insurance contract.

Unfortunately, domestic insurers not always legally competently approach to the conclusion of the contract of insurance that leads to superfluous expenses (first of all because of the conflicts to tax inspection) and to long lawsuits. To avoid it, it is necessary to show consideration more for legal base and to watch all its changes. For drawing up of contracts of insurance, rules and policies it is necessary to take as a basis the standard forms developed by experts in the field of the insurance right.

List of references

 

Books

Rodionova V. M. Finance. - M, Finance and statistics, 2001

Insurance from And to Y.Pod red. L.I.Korchevsky, K.E.Turbine. M of INFRA-m of 2001.

Fedorov G. S. Economic and social situation of Russia - M, ЮНИТИ, 1998

 

Articles

Glazkova G. V., Yu.B.Fogelson. Insurance contracts: typical mistakes at the conclusion and execution. Financial newspaper. Regional release No. 15-17, 2000 of.Dedikov S. V. Insurance contracts: not everything is so unequivocal … Financial newspaper Regional release No. 19, 1999 of.

Rehammers of Century, Khaikin R. Disappointment prevention. A way to success No. 1, 1998

 

 

 

 

 

 

 

 

 

 

 

ДОГОВОР Nо. _____ 
                           страхования имущества 
    
   г. ________________                           "___"__________ 20___ г. 
    
       ____________________________________________, лицензия Nо. ______, 
            (наименование страховой организации) 
    
   выданная _____________________________________, именуемая в дальнейшем 
                   (наименование органа) 
    
   "Страховщик", в лице ________________________________________________, 
                                     (должность, ф.и.о.) 
    
   действующего на основании __________________________, с одной стороны, 
                                (Устава, положения) 
    
   и ____________________________________________________________, в лице 
              (ф.и.о. гражданина, наименование организации) 
    
   ___________________________________________, действующего на основании 
              (должность, ф.и.о.) 
    
   _____________________________, именуем___ в дальнейшем "Страхователь", 
   (Устава, положения, доверенности) 
    
   с другой стороны, заключили настоящий договор о нижеследующем: 
    
                            1. Предмет договора 
    
        1.1. Согласно  настоящему  договору  Страховщик   обязуется   при 
   наступлении  одного  из  обусловленных  в  договоре страховых случаев, 
   повлекших утрату,  гибель,  недостачу  или  повреждение  указанного  в 
   договоре   имущества,  именуемого  далее  "Застрахованное  имущество", 
   выплатить Страхователю определенное в договоре страховое возмещение  в 
   пределах  указанной в п.  1.2 суммы (страховой суммы),  а Страхователь 
   обязуется уплатить страховую премию в размере ________________________ 
   в порядке и в сроки, предусмотренные договором. 
        1.2. Объектом  страхования  является   следующее   Застрахованное 
   имущество: 
  

№ п.п	ХАРАКТЕРИСТИКА ИМУЩЕСТВА	МЕСТОНАХОЖДЕНИЕ ИМУЩЕСТВА	СТРАХОВАЯ СТОИМОСТЬ  ИМУЩЕСТВА  (стоимость имущества на день  страхования)		СТРАХОВАЯ СУММА

 

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