Insurance contract

The law provides for a written contract conclusion. Failure to comply with the written form shall entail the invalidity of the insurance contract, with the exception of the compulsory state insurance contract.

An insurance contract (both voluntary and mandatory) can be concluded by drafting one document (clause 2 of article 434 of the Civil Code of the Russian Federation ) or by handing the insurer to the policyholder on the basis of his written or oral statement of the insurance policy (certificate, certificate, receipt) signed by the insurer . Acceptance of these documents by the policyholder is an agreement to conclude an agreement on the terms proposed by the insurer. For insurers, the conclusion of an insurance contract on the terms proposed by the insured is not mandatory.

Both the insured and the insurer must have legal capacity and legal capacity to enter into an insurance legal relationship. For the insurer, this is, first of all, the presence of a license and relevant constituent documents, duly registered. For the insured - the general rules of legal capacity and legal capacity in accordance with the Civil Code of the Russian Federation.

Personal insurance contracts are subject to the public contract rule contained in article 426 of the Civil Code. A public contract differs from other civil contracts in the following characteristic features:

1. one of the subjects of such an agreement should be a commercial organization (that is, an insurance company - an insurer);
2. commercial organizations must enter into contractual relations with any individuals and legal entities that apply to them (that is, policyholders);
3. the subject of the contract, defined as public, should be the obligation to sell goods, perform work or provide services, which in essence constitute the content of exactly that activity, which by its nature should be carried out by a commercial organization in relation to everyone who turns to it. In insurance, the subject of the contract are the obligations of insurers to protect the respective property interests of policyholders.

To conclude an insurance contract, the insurer submits to the insurer a written application in the prescribed form, or otherwise declares his intention to conclude an insurance contract in another acceptable way.

The fact of concluding an insurance contract must be certified by the insurance certificate (policy, certificate) transferred by the insurer to the insured with the application of insurance rules .

The insurance policy (certificate) must contain:

1. Title of the document;
2. name, legal address and bank details of the insurer;
3. surname, name, patronymic or name of the policyholder and his address;
4. indication of the insurance object ;
5. amount of the insured amount ;
6. indication of insurance risk ;
7. the size of the insurance premium, the timing and procedure for making it;
8. contract time;
9. procedure for amendment and termination of the contract;
10. other conditions by agreement of the parties, including additions to insurance rules or exclusions from them;
11. signatures of the parties.

Thus, the main insurance documents confirming the conclusion on certain conditions of the insurance contract are the general conditions, insurance rules and insurance policy.

Sometimes an addendum may be attached to the insurance contract.

The law also provides for the replacement of the insured in the insurance contract, sets out the cases in which it is possible to refuse insurance payment and terminate the insurance contract.

The policyholder is replaced in the insurance contract according to the following rules:

1. In the event of the death of the policyholder who has entered into a property insurance contract, the rights and obligations of the policyholder shall be transferred to the person who accepted this property by inheritance. In other cases, replacement of the policyholder, his rights and obligations shall be transferred to the new owner with the consent of the insurer , unless otherwise provided by contract or law .
2. In the event of the death of the insured who has entered into a personal insurance contract in favor of a third party, the rights and obligations determined by this contract shall be transferred to the third party with his consent. If it is impossible for this person to fulfill obligations under an insurance contract, his rights and obligations may be transferred to persons who exercise, in accordance with the legislation of the Russian Federation, obligations to protect the rights and legal interests of the insured person.
3. If during the period of the insurance contract the insured is recognized by the court as legally incapable or limited in legal capacity , the rights and obligations of such an insured are exercised by his guardian or trustee. In this case, liability insurance ends with the termination or limitation of the capacity of the insured.
4. During the reorganization of the insurer, which is a legal entity , during the term of the insurance contract, its rights and obligations under this contract are transferred with the consent of the insurer to the respective assignee in the manner determined by the legislative acts of the Russian Federation.

The policyholder may receive a refusal to receive insurance payment in the following cases:

• commission of deliberate actions by the insured, insured person or beneficiary aimed at the occurrence of an insured event ;
• commission by the insured or by the person in whose favor the insurance contract is concluded, an intentional crime in direct causal connection with the insured event;
• reporting by the insured to the insurer of false information about the insurance object;
• receipt by the policyholder of appropriate compensation for property insurance damage from the person guilty of causing this damage;
• other cases provided for by legislative acts.

For example, the Civil Code of the Russian Federation (Article 964) stipulates that the insurer is exempted from the payment of insurance compensation and the insurance amount, unless otherwise provided by the insurance contract and the law, when the insured event occurs as a result of:

• exposure to a nuclear explosion, radiation or radioactive infection;
• military operations, as well as maneuvers or other military events;
• civil war , popular unrest of any kind or strikes .

The insurer is also exempted from paying insurance compensation for losses arising from the seizure, confiscation , requisition, seizure or destruction of the insured property by order of state authorities, unless otherwise provided by the insurance contract.

The conditions of the insurance contract may provide other grounds for refusing insurance payment, if this does not contradict the legislation of the Russian Federation. Moreover, the decision to refuse insurance payment is made by the insurer and communicated to the policyholder in writing with a reasoned justification of the reasons for the refusal.

The insurance contract is terminated in the following cases determined by law :

• expiration date;
• fulfillment by the insurer of obligations to the insured under the contract in full;
• non-payment by the insured of insurance premiums within the time period established by the contract;
• liquidation of the insurer, which is a legal entity, or the death of the insurer, which is an individual, except in cases provided for by the law of the Russian Federation;
• the liquidation of the insurer in the manner prescribed by legislative acts of the Russian Federation;
• adoption by the court of a decision to invalidate the insurance contract;
• in other cases stipulated by legislative acts of the Russian Federation.

The insurance contract may be terminated ahead of schedule at the request of the insured or insurer, if this is provided for by the terms of the insurance contract, as well as by agreement of the parties. The parties are obliged to notify each other of the intention to prematurely terminate the insurance contract at least 30 days before the expected date of termination of the insurance contract, unless otherwise provided by the contract.

In case of early termination of the insurance contract at the request of the insured, the insurer returns insurance premiums to him for the unexpired term of the contract minus the costs incurred. If the claim of the insured is caused by the violation of the insurance rules by the insurer , the latter shall return to the policyholder the full insurance contributions made by him.

In case of early termination of the insurance contract at the request of the insurer, he shall return to the policyholder the full insurance contributions made by him. If the insurer's demand is caused by the insurer's failure to comply with the insurance rules , he will return the insurance premium to the insured for the unexpired term of the contract minus the costs incurred.

An insurance contract may be declared invalid by a court . According to the Law of the Russian Federation “On the organization of insurance business in the Russian Federation”, an insurance contract is considered invalid in the following cases:

• if it is concluded after an insured event ;
• if the object of insurance is property subject to confiscation on the basis of a court decision that has entered into legal force.

• Kazantsev S.K. Fundamentals of Insurance: Textbook. Ekaterinburg: IPK USTU, 1998 ISBN 5-8096-0006-9
• Gomella V. B. Fundamentals of Insurance: Textbook M: SOMINTEK, 1998