Property is insured voluntarily. And the risk of causing harm is mainly at the request of the law. Although there are situations when such foresight is very beneficial. In the article we tell who is obliged to ensure liability and why you need it.
Who insures liability and why?
The insured house burned down; the owner received a payment from the insurance company. Everything is clear here: the property is lost, the damage to the owner who insured it is compensated. The same can be said about health or life insurance. But what does insurance mean for such an intangible concept as liability?
Let’s look at the example of car owners. Every driver must have an OSAGO policy in accordance with the Federal Law “On Compulsory Insurance of Civil Liability of Vehicle Owners”. According to him, in the event of an accident, the payment will be received not by the owner of the car, but by the one who suffered from his actions.
The law does not protect you. Who? Someone you could potentially harm. This is third party liability insurance.
Sergey fell asleep at the wheel in his Audi and drove into Denis’s Lexus at a traffic light. The culprit of the accident was going to sell the car. The OSAGO policy, which expired two weeks ago, the owner decided not to reissue. And Denis suffered from such hindsight.
The owner of a Lexus never traveled a day without an OSAGO policy and thought that insurance was protecting him. But after the accident, he found out that no one would pay him anything. Because he did not insure his car, and Sergey did not insure his civil liability.
By law, the perpetrator in this case is obliged to compensate for the damage on his own. But Sergey has no savings for such a case, he has nothing to pay with.
Not only car owners can and should answer to someone for their actions and their consequences.
Types of liability insurance
Insurance is a reliable tool for dealing with risks. It is used by both individuals and legal entities. Only the premiums, the extent of the alleged damage, and the reasons for purchasing the policy differ.
Liability insurance (CO) is:
- voluntary (when you want to protect yourself and others).
- mandatory (when such an agreement is required by law).
For example, carriers of goods or owners of pets can relieve themselves of part of the costs of damages. And the owners of hazardous production facilities must take care of their employees and neighbors according to the law.
Oleg Khanin, entrepreneur, CEO of SOYUZ Insurance Brokers and SOYUZ Insurance Technologies:
“Liability insurance protects the insured from claims and claims of third parties. This is necessary if the work, actions or inaction of the insured may cause harm to someone. Both property and harm to life or health.
The most popular and understandable example of compulsory liability insurance is OSAGO.
With regard to voluntary species, a common case from practice is the bay of the premises. An unexpected leak in pipes or an open faucet can cause a lot of harm not only to the owners of the apartment, but also to neighbors from several lower floors.
These are simple and inexpensive insurance contracts that the owners conclude themselves or oblige the tenants to issue.
There are more complex and expensive types, such as directors’ liability insurance. Refers to business, suitable for large companies. Works for the benefit of policyholder officials.
Such people make management decisions, their actions or inaction can cause material harm to shareholders, customers or partners. The sums insured here start from 100 million and can reach up to several billion rubles.
The most common types of liability insurance:
- OSAGO.
- owners of hazardous enterprises.
- pet breeders.
- professional responsibility (notaries, lawyers, private practitioners).
- tour operators.
- owners of ships and aircraft.
- gun owners.
The more damage you can cause, the higher your liability and the need to insure it.
Compulsory third party liability insurance
The owner of the car is required to have an OSAGO policy. It is forbidden to drive without this document. The amount of the fine for violation is 500 rubles.
The contract can be concluded at an insurance company or a large bank (if the product is on the list of services). To do this, you don’t even need to leave your home – you can apply for a policy online and receive the document itself by e-mail.
The cost of the policy depends on:
- the size of the settlement (cheaper in rural areas), region.
- driving experience (more expensive for beginners).
- type of machine, its purpose and engine size.
- how many people drive a vehicle (V).
There are other individual discounts and surcharges. At the same time, the final price of several thousand is almost always less than the costs in the event of an accident.
If you accidentally run into someone with your car, you won’t regret spending ten thousand (or less) on OSAGO. The injured party can receive from the insurance company up to four hundred thousand rubles for car repairs and up to five hundred thousand rubles compensation for harm to life and health.
And if OSAGO is not issued, you will have to pay on your own.
Sergei, who crashed someone else’s Lexus, had difficulties with the law. Denis filed a lawsuit; the bailiffs seized the property and accounts of the culprit. A loan helped to avoid even more trouble and solve the problem. The bank was ready to wait for the return of funds much longer than the owner of an expensive foreign car.
Where and how to insure risks
In Russia, such services are not as common (besides mandatory) as in other countries. However, many specialized companies offer RMs as separate products or as part of a complex.
When concluding a contract for an apartment, you can add compensation for damage not only for the owner of the property, but also for his neighbors. Then, if you forget the iron on the stove and burn down your apartment, while smoky neighbors, all the victims will receive compensation.
Another example of an integrated approach is dog insurance. It is possible to provide for in the policy both the illness or injury of an expensive pet, and an attack on passers-by. Then the insurer will also pay compensation for torn boots or bites.
Important questions for an insurance agent
Whether or not the company has JI services, only its representatives can tell. But there are questions that any insurance agent should ask before concluding a contract.
What to find out in the insurance:
- What is included in the package.
- What determines the amount of insurance premiums, what is the final cost of the policy in your case.
- What is included in the insurance, under what conditions will they refuse to pay.
- How many times can you get into trouble and receive damages under one contract.
Only civil liability can be insured. If the incident entails administrative or criminal liability, the case will not be limited to payment of insurance, you will have to answer according to the law.
But in cases of everyday unforeseen situations, SO will save personal funds and nerves. It is easier to entrust communication with the victims to the insurance company than to explain to them on your own that their damage was not included in your budget.