The first three
fire, theft and land transport are strictly damage insurances, the insured interest falls on specific and determined things; the other five are equity insurance, in which the interest that is insured affects the general assets of the insured and not specific and determined assets.
Outside the insurance against damages regulated in the Law there are others that would also enter into that generic denomination, like this: agricultural insurances, automobile insurances in general and civil liability of the hunter.
The Law defines it as that insurances contract for which the insurer undertakes within the limits established in the law and in the contract to compensate the damages caused by fire in the insured object. It is considered fire, combustion and burning with flame, capable of spreading, of an object or objects that were not intended to be burned at the place and time it occurs. The insured property must be described in the policy, the law in its art. 46 describes the assets that are included in the notion of furniture: things of ordinary or common use of the insured, their relatives, dependents and other people who live with it, excluding, unless otherwise agreed, insurance coverage the damage caused by the fire in public or private transferable securities, commercial effects, banknotes, precious stones and metals, artistic objects and other valuables that are in the insured object even if its existence and destruction and deterioration are proven by the sinister. If the damages caused by the adoption of measures by the authority or the insured to prevent, cut or extinguish the fire, the expenses of transport or rescue of the insured objects and their disappearance are included, unless the insurer proves that they were stolen. The so-called indirect damages such as the change of alignment in the damaged buildings, the lack of rent or use, the termination of the contract, the suspension or cessation of work, the lack of profits or any other similar damage are not covered. The obligation to indemnify is imposed when the fire originates due to a fortuitous event, misconduct of strangers and own negligence or of the persons of those who respond civilly, but not of those caused by fraud or serious fault of the insured, and provided that the destruction deterioration of the objects on which the insured interest falls occurs in the place described in the policy, unless its transfer had been previously accepted by the insurer. This type of insurance can also cover, through a premium, the locative risk and the resource of neighbors. Thus the locative risk refers both to the responsibility of the insured, tenant of the damaged building, against the owner of the same, as to the responsibility of the owner against the tenants, or even against third parties. The risk called resource of neighbors is the one related to the civil responsibility, consequence of the actions that against the insured can execute a third party, derived from the propagation of the fire. As for the duration of the fire insurance contract, it will be regulated in the general conditions, if it is stipulated for a period to its expiration it will be understood tacitly extended for a period not exceeding one year.
Insurances against theft
It is defined as that insurances contract by which the insurer undertakes, within the limits established in the law and in the contract, to indemnify the damages derived from the illegitimate theft by third parties of the insured things. The coverage includes the damage caused by the commission of the crime in any of its forms. Extending the compensation, not only to the value of the interest of the insured good, but also to the damages that derive from the commission of the crime, which can be delimited with greater or lesser extent in the policy. Unless otherwise agreed, extraordinary risks insured by the Compensation Consortium are excluded. Claims caused by gross negligence of the insured, the policyholder or the people who depend on them or who live with them, as well as those outside the place described in the policy or occurred in their transport unless both circumstances are excluded would have been expressly consented to by the insurer. Finally, abandonment is allowed, if the contract includes it, that is, that the insured, when the object is not found in a period, has the right to demand the entire amount insured in exchange for assigning his rights over the insurer the object of the insured interest that has been recovered.
Land Transportation Insurances
In Spain the art. 54 of the Law of the insurances contract defines it as that contract by which the insurer is obliged, within the limits established in the law and in the contract, to indemnify the material damages that may occur with occasion or consequence of the transport of the goods ported, the medium used or other insured objects.
In the case of combined transport, the Law of the insurances contract applies if the land route is the main one. In another case the discipline of maritime or air transport applies. The legitimacy for contracting insurances extends to the commission agent and the transport agencies.
The coverage begins unless otherwise agreed, since the goods are delivered to the carrier and ends when they are delivered to the recipient at the destination. It is possible to agree the extension of the insurances to the risks that affect the goods from the moment they leave the warehouse or the address of the shipper until they enter the warehouse or domicile of the recipient, and even cover the transitory deposit of the goods and the immobilization of the vehicle or its change during the trip due to transport incidents.
The characteristics of this insurances contract are
The policy is normally floating or subscription. Premiums are accrued for each trip or expedition according to the percentage set in the policy or in the rate attached thereto.
It is usually done on their own or whoever’s behalf, to thereby transfer the security or any purchaser of the goods during transport.
It is insurances inspired by the principle of universality of risk. Although normally the policies establish exclusions that cut the breadth of that postulate.
The duration of the contract can be for a specific time or for a trip, establishing an expiration period of 6 months for the claim of damages after the end of the contract. With respect to the payment of the compensation, the insured will not lose his right to compensation for the accident, when the means of transport, the itinerary or the travel periods have been altered or it has been made in a time other than that provided, as long as the Modification is not attributable to the insured.
Contract compensation is governed by the following rules
Those necessary to carry out the re-shipment of the insured transported objects will be considered included in the rescue costs.
In case of total loss of the vehicle, the insured may leave them to the insurer, if so agreed.
In the absence of an estimate, the compensation will cover, in case of total loss, the price that the goods had at the place and at the time they are ordered and, in addition, all the expenses incurred to deliver them to the transporter and the price of the sure if it fell on the insured.
When the insurance covers merchandise risks that are destined for sale, the compensation shall be regulated by the value that the merchandise had at the place of destination.
Finally we can point out some special transport insurance, insurance that is practiced in special policies:
- Securities transport insurance: it is the one that falls on interests related to commercial or industrial purposes, public securities, lottery or banknotes or similar documents.
- Package transport insurance: it falls on interests related to things carefully packed in sealed packages or boxes, the company being responsible for the weight of the package up to a maximum amount.
- Insurance of wagons in traffic: it covers the risks of destruction, breakdowns or direct damages suffered by the insured material, both in travel and in stay at the railway stations, sidings, garages and enclosures of the repair shops.
Lucro Cesante insurances
It is regulated as that insurances contract by him that the insurer is obligated, within the limits established by law and in the contract, to indemnify the insured for the loss of the economic performance that could have been achieved in an act or activity of not having occurred the incident described in the contract. This type of insurances may be concluded as a stand-alone contract or added as a pact to another of a different nature. This insurances covers risks affecting one or several lucrative operations predetermined in the policy, or fall on the activity of a commercial company, ensuring the loss of benefits and the general expenses that the holder of the latter must continue to bear when he is totally or partially paralyzed , as a result of events determined in the contract. In the event that insurance for loss of profit and other damages on the same object coexist, but with a different insurer, the insured must notify each of the insurers of the existence of the other insurance. The compensation to be paid according to the law, unless otherwise agreed.
- The loss of benefits produced by the incident during the term established in the policy.
- General expenses that continue to tax the insured after the production of the incident.
- The expenses that are a direct consequence of the incident.
- When the contract only aims at the loss of benefits, the parties may not predetermine the amount of compensation.
The law defines it as that insurance contract for which the insurer is obliged, in the event of breach by the policyholder of its legal or contractual obligations, to indemnify the insured by way of compensation or penalty of property damage suffered, within the limits established in the law or in the contract. All payments made by the insurer must be reimbursed by the policyholder. It is definitely a contract stipulated by the policyholder to guarantee the fulfillment of certain obligations that it has contracted with the insured. The modalities of this insurance are: insurance for securing anticipated amounts for housing; surety insurance in favor of the Public Administration, as well as those that have a contractual origin such as those related to works or those required to practice a profession: insurance broker.
There has been some doctrinal sector that has denied him the nature of insurance, attributing to him the legal nature of an insurance consolidation. Today most of the doctrine is inclined to point out that we are facing an insurance contract, something that has come to be legally reaffirmed, when the Law collects it as a form of damage insurance.
Under the credit insurances contract, the insurer undertakes, within the limits established in the law and in the contract, to indemnify the insured for the final losses that he experiences as a result of the definitive insolvency of his debtors.
The cases in which the definitive insolvency of the debtor will be deemed to exist:
- When it has been declared bankrupt by firm judicial resolution.
- When an agreement has been judicially approved establishing a withdrawal from the amount.
- When the execution or enforcement order has been issued, without the free assets being sufficient for payment.
- When the insured and the insurer, by mutual agreement, consider that the credit is uncollectible.
- However, after 6 months from the insured’s notice to the insurer of the non-payment of the credit, the latter will pay the 50% of the coverage agreed, provisionally and on account of subsequent final settlement.
The amount of the compensation will be determined according to a percentage of the final loss, which will have to be established in the policy for which the expenses incurred by the recovery procedures, the procedural expenses and any other expressly agreed upon will be added to the amount of the unpaid credit. Said percentage shall not include the insured’s benefits, nor be less than 50% of the final loss.