Tuesday, 12 August 2008

Insurance policy classification

Classification of insurance policy terms assumes: express terms - the conditions,that are contained in the insurance policy (for example, damages must be payed during 7 days after insured accident became) and implied terms - the terms, that aren’t in the insurance policy, but they are refered to insurance contract by act of the common law (for eaxample, policy owner and insurer are obliged to follow the highest principles of honesty).

Usually, express terms are the description of the risk, from which the insurance is covered, the period of the insurance coverage, the possible sum, on which the object is insured, insurers’ deliverance from the responsibility by appropriate circumstances.

Insurance policy classification

In the insurance policy there are liabilities of either policy owner or insurer. For example , in the auto insurance policy for house property it can be specified : the loss or damaging of some house property, that have happened as a result of some accident(unexpected developments). In other express term it can be specified that the property, found in house is house property and some personal things. The accident can be fire, lightning stroke, explosion, hurricane, earthquake, flood, water leak, theft.

Auto insurance policy can contain some exceptions. For instance, from all house property pets and cars are excepted. From concept of “accident” such exceptions are disorders, strikes, floor convergence, on which house stands. In the insurance policy there can be something like that: “This auto insurance policy doesn’t include damage, loss or destruction of the property, if it had happened as a result of the war, invasion, civil war.”

Among the policy owner’s duties there is such express term: “The police has to be informed about loss accident or damage of the property after the theft.”