We also advise clients on issues related to insurance law - in concluding an insurance contract, in the event of an insured event, in cases of non-life and liability insurance, we represent them in negotiations and litigation.
Some basic concepts
Insurance contract: Pursuant to § 422 (1) of the Law of Obligations Act (VÕS), one person (insurer) undertakes to indemnify the damage caused by the insured event or pay the agreed amount of money once or in parts or perform the contract in another agreed manner (insurer's performance obligation). The other person (the policyholder) undertakes to pay insurance premiums to the insurer.
Insured event is a previously agreed event, upon the occurrence of which the insurer must perform its performance obligation arising from the contract (§ 423 (1) of the LPA).
Insurance risk is a risk against which insurance is taken out (§ 423 (2) of the LPA).
Policy - the insurer must issue to the policyholder a document on the conclusion of the insurance contract (policy) in a form that can be reproduced in writing. At the request of the policyholder, the policy must be issued in writing (§ 434 (1) of the LPA).
General insurance - In the event of an insured event, the insurer must indemnify the insured person for the damage caused by the insured event in accordance with the contract. If the thing is insured, the insurer must, among other things, indemnify the damage that arose as a result of the liquidation of the consequences of the insured event, as well as the damage that occurred due to the loss of the insured things upon occurrence (§ 476 (1)).
Liability insurance - In this case, the insurer must fulfill the obligation to indemnify the policyholder for the damage caused to the third party (injured party) as a result of the insured event during the validity of the insurance and bear the costs incurred for legal aid (§ 510 of the LPA).
Accident insurance - In the event of an accident, the insurer must pay the amount agreed in the contract either as a lump sum or periodic payments, indemnify the property damage caused by the occurrence of the insured event or perform the contract in another agreed manner (§ 548).