Insurance contract

Essential terms are necessary for contracts of a certain type. The contract is considered concluded only if there is agreement between the parties on all essential points. If the parties do not reach an agreement on at least one of the essential conditions, then the contract cannot be considered concluded.

Those terms of the contract that are recognized as such in the relevant legislative and regulatory acts are considered essential. In international insurance practice, the following conditions are essential for insurance contracts:

events upon the occurrence of which the insurer is obliged to pay insurance compensation (sum insured);

the territory covered by the insurance contract;

object of insurance;

sum insured;

procedure and terms of payment of insurance compensation (sum insured);

validity period of the insurance contract;

period of liability of the insurer for obligations;

the amount and procedure for paying the insurance premium (contribution);

the procedure for making changes to the terms of the contract;

legal consequences in case of non-fulfillment or improper fulfillment of obligations by the parties under the contract;

procedure for resolving disputes between the parties to the contract.

In Russian insurance law, the list of essential conditions is somewhat different. Article 942 of the Civil Code of the Russian Federation establishes four essential conditions of an insurance contract, three of which are common to property and personal insurance:

the nature of the event against which insurance is provided (insured event);

sum insured;

validity period of the insurance contract.

For property insurance: property or property interest that is insured. For personal insurance me: the insured person.

It should be remembered that if an agreement is not reached between the parties on at least one of these conditions, the contract is considered not concluded. And an unconcluded agreement is not valid simply because it does not exist.

In particular, a contract in which there is no insured amount is considered not concluded, since in accordance with Art. 942 of the Civil Code, the insured amount refers to the essential terms of the insurance contract. However, there is one exception to this rule. In Art. 4 Law of the Russian Federation “On medical insurance of citizens in the Russian Federation” standard forms of medical insurance contracts are provided, approved by Decree of the Government of the Russian Federation No. 41 of January 23, 1992. In accordance with this document, the insurer is obliged to pay for all medical services provided to the insured in accordance with the insurance program attached to the policy.

Usual terms of the contract- these are the conditions present in any contract and provided for by law in the event that the parties do not wish to establish anything else. This is information about the place where the agreement was concluded, the form of the agreement, and the moment it came into force. As a rule, the contract comes into force from the moment the insurance premium is paid by the policyholder, unless otherwise provided in it.

Mandatory terms of the contract are prescribed to the parties for agreement by law. In insurance contracts, this is, for example, the sum insured, the start date of insurance coverage, etc.

Initiative conditions are included in the contract at the request of the parties. The law allows the establishment of any conditions that do not contradict the law in a contract by mutual agreement, which contributes to maximum consideration of the wishes of the parties.

Individual agreements in insurance contracts relate to an individual specific risk. Moreover, such an individual agreement always has advantages over the general content of the contract. In practice, in such cases, it is recommended to use the following rule: the conditions developed on the basis of an individual agreement precede the standard conditions.

Along with the mandatory requirements and norms regarding insurance contracts contained in legislative acts, in world insurance practice there is the concept of customary law, which is also important for the developing Russian insurance. Common law is the so-called unwritten law, socially recognized and universally applied norms that are not included in any law due to their obviousness. For example, the following common law rules are relevant for insurance. The policyholder can trust the explanations of the insurance company's agents regarding the content and scope of insurance coverage. An insurance broker, although he represents the interests of the policyholder, has the right to make claims against the insurance company regarding the payment of commissions to him, since it is the insurance company that pays for his work.

Procedure for concluding an agreement. The conclusion of a contract is preceded by an agreement between the parties, which is achieved through negotiations. The basis for their initiation is an oral or written statement from the policyholder. A written statement is almost always used in relations with legal entities and, increasingly, with individuals. It serves as the document on the basis of which the insurance company draws up an insurance contract, issues a certificate or policy.

The use of a written application is convenient in that it allows the insurer to check the circumstances of the case and after that accept or reject the client’s application. An insurance contract, if there is a written application, comes into force when the insurer notifies the applicant that his application has been accepted.

During negotiations prior to concluding a contract, the insurance company is obliged to familiarize the policyholder with the terms and conditions of insurance. The policyholder, in turn, is obliged to provide the insurer with all the information necessary to assess the risk. If the insurer does not provide the specified information, he has every reason to refuse to conclude the contract.

Voluntary insurance contract - a legal form that serves the purpose of creating insurance funds of insurance organizations at the expense of policyholders.

Insurance policy, or insurance certificate, - a document of a standard form, which is issued by the insurer to the policyholder (insured) and certifies the fact of concluding an insurance contract.

Duration of the insurance contract - the time stipulated by the insurance conditions during which the insurer’s insurance liability is valid, i.e. his obligation to make an insurance payment upon the occurrence of an insured event. There are short-term insurance contracts, the validity of which does not exceed one year, and long-term insurance contracts, the validity of which is at least one year.

Insurance contract

Voluntary insurance is carried out on the basis of an insurance contract, which must be concluded in writing. Along with the law “On the organization of insurance business in the Russian Federation,” the legal norms governing the insurance contract are presented in Chapter 48 of the Civil Code of the Russian Federation.

An insurance contract is an agreement between the policyholder and the insurer. Under this agreement, the insurer undertakes to make an insurance payment to the policyholder in the event of an insured event, and the policyholder undertakes to pay insurance premiums on time.

Underwriting

The procedure for concluding an insurance contract is preceded by underwriting.

Underwriting is the process of dividing potential policyholders into classes based on the appropriate classification of risks in order to assign them a suitable tariff. The underwriter decides whether or not to accept the risk presented in the application for insurance. It is customary to distinguish between the procedures inherent in individual and group underwriting. Group underwriting evaluates group characteristics, demographics, and past losses. In individual underwriting, the policyholder must provide information confirming that his risk is insurable (for life or health insurance) or specific details regarding his property or vehicle (for property or business insurance). With life insurance, the individual policyholder's risk must be approved by the insurance company's underwriter (this process can take a long time). A common practice is for the policyholder to fill out questionnaires containing questions about his lifestyle, smoking, and the health status of the policyholder himself and his family members. When insuring large sums of life insurance, the policyholder is required to undergo a medical examination.

If the underwriter decides to accept the risk for insurance, the next thing he must do is apply the correct premium rate. Premium rates are assigned for each class of policyholder by the actuarial department. The role of the underwriter is to determine which class a particular insured should be classified into. The insurance business cannot avoid some discrimination; Otherwise, the resulting anti-selection will make insurance unaffordable for many. Anti-selection can occur when price categories are so broad that both favorable and unfavorable risks for the insurer are combined into one group, and policyholders pay the same price for them. Under such circumstances, for policyholders with high risks, insurance is more profitable due to the price being lower than necessary to create an insurance fund, and for policyholders with insignificant risks, the price will be too high. Consequently, policyholders with insignificant risks will not be interested in insurance on such terms, since the deal is not profitable for them. If only unfavorable risks are accepted for insurance, it will become very expensive. In order to prevent this market error, insurers must charge lower premium rates for small risks, i.e., the price of insurance must be differentiated.

The main purpose of the underwriter's work is to obtain confidence that that the insurance premium assigned to each policyholder actually reflects his risk, and therefore insurance operation is profitable.

The underwriting procedure consists of the following stages:

1st stage: make a risk assessment based on the insurance application or more detailed research;

2nd stage: decide whether to accept this risk for insurance;

3rd stage: offer the policyholder the most optimal option for insurance conditions for both parties;

4th stage: calculate the insurance rate.

The underwriting process involves assessing risk based on an insurance application or more detailed research. The legislation reserves the right of the insurer to independently assess the risk. This is necessary to decide whether to accept this risk for insurance. Next, the insurer develops insurance conditions and calculates the insurance premium. Underwriting is an extremely responsible procedure in the activities of an insurance organization. The consequences of an underwriter's error in assessing risk can lead to an incorrect calculation of the insurance premium, and consequently to an unprofitable operation (in the worst case, to the insolvency of the company).

In some cases, the information contained in the insurance application is sufficient to conclude an insurance contract. But from the perspective of the most accurate risk assessment, such an approach is considered risky for the insurer. If the information contained in the application is not enough to assess the risk, then the underwriter (a highly qualified specialist in the field of insurance business who has the authority from the management of the insurance company to accept the proposed risks for insurance, determine tariff rates and specific terms of the insurance contract for these risks), based on norms of insurance law and economic feasibility, has the right to request additional information from the policyholder.

Insurance Application

The procedure for concluding an insurance contract begins with filling out an insurance application form. An oral or written statement from the policyholder serves as the basis for concluding a contract. Unlike Russian insurance practice abroad, a written application is required. Based on this application, the insurance company draws up an insurance contract and issues a certificate or policy.

The application has a standard form for an insurance organization and contains the information necessary for the insurer to assess the risk of a potential client - the applicant. The application form includes questions to characterize the risk at the time of concluding the insurance contract.

The insurance application is the main source of information about the risk and contains a number of points regarding the characteristics of the risk. In some cases, the information contained in the insurance application is sufficient to conclude an insurance contract. But from the perspective of the most accurate risk assessment, such an approach is risky for the insurer. If the information contained in the application is not enough to assess the risk, the insurer has the right to request additional information from the policyholder.

When filling out the application, the applicant must be aware that all the information provided by him will subsequently act as the basis of the insurance contract. The applicant must be informed of the consequences of deliberate misrepresentation of his or her health status. The first responsibility of the future insured is to comply with one of the basic doctrines of the insurance business - the principle of supreme good faith.

The policyholder, in turn, is obliged to provide the insurer with all the information necessary to assess the risk. If the insurer does not provide the specified information, he has every reason to refuse to conclude the contract.

This is explained by the fact that only the policyholder knows everything about his risks. The insurer only knows what he is told. For a correct risk assessment, it is important to know all the essential circumstances
insurance - risk circumstances that can influence the decision of the insurance company to enter into an insurance contract or introduce appropriate agreed conditions into its content.

In accordance with this, the policyholder is required to provide truthfully and completely all necessary information on the risk. This is called the principle of highest integrity in insurance.

In order to ensure that it receives the necessary information, the insurer uses two methods:

• direct survey in the form of an application;
• inclusion in the contract of a condition that the client must independently inform the insurer about facts important for assessing the risk.

Failure to comply with this condition gives the insurer grounds to refuse insurance protection to the client. The obligation to disclose all material factors concerns the moment of conclusion of the contract, since this is a long-term contract. In property and liability insurance, this obligation exists not only at the time the contract is concluded, but also when it is renewed after a year.

In general, insurance companies are free to choose the form of application for insurance. The main thing is that this form meets the needs of the insurer. The decision on the structure and content of the documentation is the responsibility of the underwriter, and then it is approved by the marketing service, contract management and claims processing departments. The final decision regarding the insurance application form remains with the insurance product development (construction) department.

It is necessary to determine how reasonable and appropriate the questions in the application are, and whether they are offensive to the policyholder; in addition, it is necessary to exclude the possibility of misinterpretation of the questions.

Traditionally, the statement is prepared in such a way as to identify all the details and aspects that are considered material in relation to the risks.

Each insurance company has its own view on the questions included in the application, which largely depends on the balance of the needs of the underwriter and the marketing department. This is often a trade-off between the desire to extract as much information as possible and the need to shorten the statement so that it does not turn off potential clients.

Insurance contract form

In accordance with Art. 940 an insurance contract can only be concluded in writing. The exception is compulsory state insurance contracts, where written form is not required.

The forms of an insurance contract can be different: an agreement signed by two parties, or an insurance policy (certificate, certificate, receipt) signed by the insurer and drawn up on the basis of a written or oral statement from the policyholder.

Bearer insurance policy

In accordance with Art. 930 of the Civil Code, it is now possible for bearer policies to appear, which, although they are not, can circulate on the secondary market and thereby play the role of an investment object. Insurers should, however, be careful when placing such policies among citizens, since clause 2 of the Decree of the President of the Russian Federation “On protecting the interests of investors” dated June 11, 1994 prohibits such activities without an appropriate license.

General policy

One of the types of policies that is directly defined in the Civil Code as an insurance contract is a general policy
(Art. 941). Let's imagine a situation where it is necessary to systematically insure consignments of cargo, and the insurance conditions for different consignments are identical, and only the object of insurance itself differs (the consignment is different each time) and the insured amount, and therefore the payment. For such cases, a general policy or general insurance contract has been developed, which defines all insurance conditions, except for the insured amount and payment. The insurance object in the general contract is described by general characteristics, since at this stage it cannot yet be individually determined. The insured amount, payment and individual characteristics of the insurance object are determined by policies or certificates that are issued for each batch.

The agreement between the policyholder and the insurer, expressed by the general policy, in most cases cannot contain all the essential terms of the insurance contract, since the most important of them - the insured amount and the individual certainty of the insurance object - become known only for a specific batch of property.

Public nature of the personal insurance contract

Art. 927 of the Civil Code indicates that a personal insurance contract is public. This means that an insurer licensed for any of the types is obliged to enter into this agreement with anyone who applies to him “if possible”
(Article 426 of the Civil Code).

Terms of the insurance contract

Essential terms are required for certain types of contracts. The contract is considered concluded only if there is agreement between the parties on all essential points. If the parties do not reach an agreement on at least one of the essential conditions, then the contract cannot be concluded.

Those terms of the contract that are recognized as such in the relevant legislative and regulatory acts are considered essential.

In Russia, the list of essential conditions is somewhat different.

Art. 942 of the Civil Code establishes four essential conditions of an insurance contract, three of which are common to property and personal insurance: the nature of the insured event; sum insured; validity period of the insurance contract. The fourth condition is necessary for property insurance: the property or property interest that is insured. For personal insurance: the insured person.

It should be remembered that if an agreement is not reached between the parties on at least one of these conditions, the contract is considered not concluded.

A contract in which there is no insured amount is considered not concluded, since in accordance with Art. 942 of the Civil Code, the insured amount refers to the essential terms of the insurance contract.

As a rule, the contract comes into force from the moment the insurance premium is paid by the policyholder, unless otherwise provided in it.

Individual agreements in insurance contracts relate to an individual specific risk. Moreover, such an individual agreement always has advantages over the general content of the contract. In practice, in such cases, it is recommended to use the following rule: the conditions developed on the basis of an individual agreement precede the standard conditions.

Insurance rules

Mandatory insurance rules

In the Civil Code, the mandatory nature of insurance rules for the insurer is established in Art. 943. It gives the policyholder and the beneficiary the right to refer to the rules if they are referenced in the insurance contract. In addition, the parties are allowed to agree in the contract on changes to certain provisions of the rules.

In order for the terms of the insurance rules to become mandatory for the other party to the contract (the policyholder and the beneficiary), this, firstly, must be established in the contract, and secondly, the rules must be an integral part of the contract. If they are only attached to the contract (policy), the fact of delivery of the rules to the policyholder must be recorded in the contract.

Standard insurance rules contain the following points:

1. General provisions (basic terms and definitions).
2. Subjects of insurance (the range of subjects of insurance has been determined).
3. Object of insurance (objects of insurance are defined).
4. Insurance risks. Insured event (a list of insured events is defined in which the insurer is liable for insurance payments, and exceptions are cases when the insurer is exempt from payment, i.e. losses that are and are not subject to compensation. This paragraph also contains both main and additional conditions).
5. Sum insured (the procedure for determining the insured value of property and establishing the insured amount).
6. Insurance premium (insurance premium) (basic insurance rates, procedure for paying the premium, actions of the insurer if the insured event occurs before the next insurance premium is paid).
7. Conclusion, validity period and termination of an insurance contract (i.e., the procedure for concluding the contract, the conditions for its entry into force and termination, other requirements for the contract).
8. Consequences of changes in risk level.
9. Rights and obligations of the parties (insurer, policyholder, insured, beneficiary).
10. Determination and payment of insurance compensation (grounds for payment, form and deadlines for filing a claim, terms for processing a claim and payment, determining the amount of payment, conditions, grounds for refusal to pay).
11. Changes and additions to the insurance contract.
12. Dispute resolution procedure.

The rules are accompanied by a basic table and a sample insurance policy.

Essential terms of the insurance contract defined in Art. 942 Civil Code. The content of the contract is the totality of its terms or clauses expressing the will of the parties. In legal practice, the terms of a contract are usually divided into essential, ordinary, mandatory and individual.

Essential terms are necessary for certain types of contracts. The contract is considered concluded only if there is agreement between the parties on all essential points. If the parties do not reach an agreement on at least one of the essential conditions, then the contract cannot be concluded.

Essential terms of the insurance contract:

In property insurance, the essential conditions of insurance include: the condition on the amount of the insured amount; condition on the duration of the contract; a condition about property or property interest that is the object of insurance; a condition on the nature of the event, in the event of which the insured event is insured.

In personal insurance, the essential insurance conditions include: the condition about the insured person; condition on the amount of the insured amount; condition on the duration of the contract; a condition on the nature of the event against the occurrence of which in the life of the insured person insurance is provided (Article 942 of the Civil Code of the Russian Federation).

Article 434 of the Civil Code of the Russian Federation distinguishes two ways to conclude an agreement:

1) by drawing up one document agreed upon and signed by the parties;

2) by exchanging documents that would indicate the parties’ desire to conclude this agreement.

The document certifying the conclusion of the insurance contract must contain the following data:

1) name of the document;

2) name, legal address and bank details of the insurer;

3) last name, first name, patronymic or name of the insured’s organization and its address;

4) the amount of the insured amount;

5) indication of the insurance risk;

6) the amount of the insurance premium, the timing and procedure for its payment;

7) duration of the agreement;

8) other (special) conditions by agreement of the parties, including additions to the rules or exceptions to them; procedure for changing and terminating the contract, etc.;

9) signatures of the parties.

Let us remind you that an agreement in which there is no insured amount is considered not concluded, since in accordance with Art. 942 of the Civil Code, the insured amount refers to the essential terms of the insurance contract.

__________________________

There is one exception to this rule. In Art. 4 of the Law of the Russian Federation “On Medical Insurance...” provides standard forms of medical insurance contracts, which are approved by the Decree of the Government of the Russian Federation dated January 23, 1992 “On measures to implement the Law...”. From these standard forms it follows that the insurer is obliged to pay for all medical services provided to the insured in accordance with the insurance program and the possibility of limiting payment to any amount is not provided. Consequently, a person insured under a health insurance contract has the right to unlimited payment for medical services in accordance with the program attached to the policy, regardless of whether there is an insured amount in the contract or not (Article 970 of the Civil Code).

Along with the essential conditions, the contract also contains a number of conditions belonging to different categories.

Usual terms of the contract- these are the conditions present in any contract and provided for by law in the event that the parties do not wish to establish anything else. This is information about the place where the contract was concluded, the form of the contract, etc.

Mandatory terms of the contract are prescribed to the parties by law for agreement. In insurance contracts, these are, for example, details of the parties, terms of payment, start date of insurance coverage, etc. As a rule, the contract comes into force from the moment the insurance premium is paid by the policyholder, unless otherwise provided in it.

Unlike mandatory individual conditions are included in the contract at the request of the parties. The law allows the establishment of any conditions that do not contradict the law in a contract by mutual agreement, which contributes to maximum consideration of the wishes of the parties. Individual agreements in insurance contracts relate to an individual specific risk. Moreover, such an individual agreement always has advantages over the general content of the contract. In practice, in such cases, it is recommended to use the following rule: the conditions developed on the basis of an individual agreement precede the standard conditions.

Along with the mandatory requirements and norms regarding insurance contracts contained in legislative acts, in world insurance practice there is the concept customary law which is also important for the developing Russian insurance industry. Common law is the so-called unwritten law, socially accepted and universally applied rules that are not included in any law due to their obviousness, for example, compliance by the parties with the terms of a contract. By the way, the corresponding clause in Russian practice is usually included in the insurance contract. For insurance, such norms of customary law are important as the policyholder’s trust in the explanations of insurance company agents regarding the content and scope of insurance protection.

Polisnye cargo insurance conditions may have significant differences depending on the nature of the cargo, type, method, route and other individual parameters of transportation.

Below are the main cargo insurance conditions that can be found in a classic insurance contract.

All types of cargo, with or without packaging, including oversized and dangerous ones, can be accepted for insurance.

The following cargo requires separate approval:

Excise goods;
- cash;
- precious metals, stones, jewelry and ornaments;
- drawings, paintings, sculptures and other works of art;
- live animals;
- flowers and plants
- military products (weapons, ammunition, etc.)

Insurance period (start and end of insurance)

Insurance is valid within the limits of the start and end dates of transportation specified in the policy. As a rule, the insurance period is indicated based on the planned transit time for the entire transportation period, taking into account storage, reloading (transshipment).

In the event of an increase in cargo delivery time, the Policyholder has the right to request an extension of the insurance contract. At the same time, the Insurer has the right to request payment of an additional insurance premium if the conditions of transportation change (route, carrier, etc.)

In addition, the insurance policy specifies specific operations with cargo, limiting the beginning and end of the insurance coverage. Such actions may be the beginning or end of loading onto the carrier’s vehicle (car, ship), transfer of cargo to the first carrier, to the terminal, airline warehouse, etc.

In Russian practice, by default, insurance coverage does not include loading and unloading operations.

In a cargo insurance contract, as a rule, such a concept as a conditional franchise is used. This term refers to the procedure for settling a loss and denotes the non-reimbursable part of it, i.e. the application of an UNCONDITIONAL deductible automatically reduces the amount of insurance compensation by its value.

The deductible is expressed as a percentage of the insured amount (the cost of the cargo) or the actual monetary value. At the same time, the value of the deductible affects the tariff: the larger the deductible, the lower the tariff, and, accordingly, vice versa.

On the one hand, the franchise in cargo insurance serves as a certain psychological factor that promotes a more careful attitude of the Insured to the insured cargo. On the other hand, the deductible is one of the factors by which insurance rates can be adjusted.

Insurance is a service whose popularity in Russia is growing every year. Russians insure property, life and health. People who do not have special knowledge have many questions related to concluding a contract, one of which is: “What terms of the contract are considered essential!” Let's try to figure it out together.

About essential conditions

Essential terms are significant provisions that require agreement between the parties entering into a contract. If agreement is not reached on at least one point, the agreement will not enter into force.

The policyholder and the insurer should come to mutual agreement on the following issues:

• • subject of the contract;
  • a number of conditions provided for by law;
  • conditions set by one of the parties as significant.

Essential terms of the insurance contract

The most important point of the contract that requires consideration and approval is the subject or object of insurance.

About the subject of the agreement and other significant conditions

Determining the subject of the contract is one of the biggest problems in . A peculiarity of the issue related to the subject of insurance is the fact that the legislation does not have an accurate description of the concept of the subject of the insurance contract. Therefore, when concluding an agreement, the concepts of subject and object are often mixed, or provisions are included that are not related to the document, etc.

Subject of insurance law

In principle, the subject of the contract is the activity of the insurer, which is paid for by the policyholder. That is, this is protection, which is essentially a product. A citizen who wants life or health buys this product. Hence we conclude: insurance protection is the subject of the contract.

Article 942 of the Civil Code of the Russian Federation provides for a number of conditions, in addition to the subject matter, on which the interested parties need to reach agreement.

• . Nature of the event and occurrence of the insured event.
• Conditions considered essential by one of the parties.
• Duration of the contract.
• Amount of monetary compensation and procedure for payment of funds.

The contract is not valid without mutual agreement of the interested parties on all of the listed points.

Differences between property insurance and personal protection

When protecting personal interests, the presence of an insured person is documented. But at the same time, there is a need to agree on personal intangible interests (life, health, honor, dignity, etc.), which must be described in the contract. Since it assumes the occurrence of cases of damage and harm to the main interest. You can consider the nuances using an example.

Accident insurance involves a description of the following points: the client’s health, his life, or life and health together.

For example, according to , the object is the civil liability of the owner of a documented car. But the agreement provides for a description of other characteristics of the object, for example: the life of the car, the functionality of individual elements.

The objects specified in business risk insurance intersect with the objects of property and civil liability insurance. The result of this intersection was serious restrictions for insured entrepreneurs.

Pros and cons of defining by generic characteristics

To understand what generic characteristics are, let’s look at an example. 5 blue mink coats are insured. The generic characteristics in this case are: 5 fur coats, blue mink. That is, exactly 5 fur coats (no more, no less) from blue mink (not from arctic fox or brown mink) will be considered the insured object.

Generic characteristics of things are number, weight, measure, quality and other characteristics inherent in all objects of the same kind. It is important to know that property defined in this way is fungible.

Despite the fact that the division of things into individual and defined by generic characteristics is considered classical and cannot be questioned, currently in the Civil Code of the Russian Federation there is no concept of an individually defined thing, and rules regarding such a definition.

However, the courts recognize that it is possible to agree on the terms of an object by indicating its generic characteristics. For example, you can legally insure:

• the goods are sold and in circulation;
• property, defining its location address;
• vehicles of the insured carrier, as well as drivers servicing the vehicle and passengers.

The absence of an accurate formulation of generic characteristics when establishing the insured property can lead to serious complications that will negatively affect the conclusion of the contract.

How to correctly determine an insured event

An event described in detail in the contract is called, upon the completion of which the policyholder is paid a certain amount of money, or compensation.

An event covered by the document has the following characteristics:

• probability of occurrence (may or may not happen);
• randomness (it is impossible to establish in advance the possibility of an attack);
• level of harmfulness (amount of damage).

An insured event is a life circumstance that does not depend on a person, his consciousness and will.

The event should be described taking into account the following aspects:

• dangers and exceptions;
• all types of damage and harm permissible in a particular case;
• cause-and-effect relationships between danger and harm, the description of which may vary depending on the contract.

For example, if property is insured against flooding, then the insurance will cover direct losses, reimbursing only the cost of property damaged by water.

If the property is not insured against a fire, during the extinguishing of which water got on things, burned things or damaged by fire will not be covered by the contract.

But if all causes of damage or loss of property caused by fire are insured, then compensation will be provided even if things are flooded with water when extinguishing the fire. This is considered consequential loss coverage.

The example shows that upon the occurrence of a life circumstance fixed in the contract, only in the case of a correctly described direct and indirect connection between danger and harm, the owner will receive the maximum amount of money as compensation.

How to avoid disputes when reviewing contract provisions

Most often they arise regarding the nature of the event that led to the insured event. For example: “Death or damage to a car due to theft.” The insurer refuses to pay compensation for a stolen car. At the same time, it is supported by the appellate and cassation courts, drawing attention to the fact that only theft, and not the death or damage of the vehicle, has an evidence base.

But theft can be considered as a danger, and damage or death of a vehicle can be considered as harm caused. If a car is stolen, it is not always lost or damaged. It is enough to include the loss of a car in such an agreement, and all problems would be solved instantly.

The policyholder's mistake lies in inattentively studying the contract, which was taken advantage of by an unscrupulous insurer by including an unfair condition in the document.

Amount and procedure for payment of monetary compensation

Legislation referred to as significant or necessary is essential. Among them is a description of the insurance premium and the procedure for paying amounts of money.

Amount of contributions

Standard contracts have a special column in which the amount of the insurance premium is entered. An empty column allows the contract to be declared invalid, since agreement between the parties regarding this clause was not reached. As a last resort, you need to check the document for possible typos.

Procedure for receiving insurance payment

Contracts concluded in a non-standard form must necessarily contain a clause on the amount and procedure for paying the insurance premium. Any discrepancy is suspicious. This is due to the fact that there is no free insurance; for any purchased product, which is protection, you must pay a certain amount. The amount of the insurance premium is completely dependent on the amount of risk determined by the insurer.

Period and procedure for depositing funds

The exact date of depositing funds may not be determined documentaryly, since according to clause 1 of Art. 957 of the Civil Code of the Russian Federation, the agreement will come into force only from the moment the contribution is paid. After the insurance contract comes into force, time ceases to have any legal meaning, since the deadline for paying the premium is the obligation to pay the insurance amount.

The payment procedure is less important than the amount of the premium, since without specifying the deadline for depositing funds, the contract can be considered valid.

Insurance compensation: features of approval

The insured amount is the monetary compensation paid by the insurer. The insurer can limit the total amount by agreeing with the policyholder on an essential condition specified in the contract as a “limit of liability.”

It is extremely unprofitable for the policyholder, due to the fact that it is considered an uncertain term of the contract.

In the event of an automatic change in the amount of monetary compensation during the validity period of the contract, the policyholder can restore it by making the necessary additional payment. Changing the amount automatically is possible in the case when the payment amount and bonus are fixed in currency or conventional units.

Foreign currency is used as a unit of account, and payments are made in rubles at the current rate at the time of depositing funds.