Damage Insurance Branches Insurance of properties and liability Insurance Damage insurance is the insurance which the insured risk is a matter related to WhatsApp: +971555570005
Damage Insurance Branches
Insurance of properties and liability Insurance
Damage insurance is the insurance which the insured risk is a matter related to the insurer’s possession not in person, unlike the insurance of persons. Where the insured risk is related to the life of person, not his possessions .
Accordingly, if the risk is related to possessions and the damage that may accrue to it. Then the Insurance will fall within the category of insurance of damage. For example fire insurance, theft insurance, plant damages and liability insurance .
And If the risk is related to the insured person, such as death, serious injury or disability, Then it will be within insurance of persons.
In case of death of livestock, it shall be included in the scope of damage insurance, because livestock are seen as possessions, and it’s death is harmful to the owner and cause financial loss.
Health Insurance is considered as insurance for people, although it is an insurance of damages at the same time, In terms of reimbursement of treatment expenses and medicines, which is the main obligation in this type of insurance,
Also injuries insurance is considered as insurance for people In respect of the amount of insurance paid by the insurer to the insured,
But falls within the scope of damage insurance in respect of treatment expenses. And the main component of this insurance is the amount of insurance, Though treatment expenses is a secondary component, Other than health insurance the main element is treatment expenses.
Damage insurance is divided into two main branches: insurance of properties and liability insurance:
Insurance of properties is the intention to insure for the insured the damage of his possessions directly, such as burning of his house or his belongings are stolen or damage to his plants.
First the insurance of properties:
The insured property may be a particular kind , such as insurance for a house from fire, Or may not be specified except by its kind, Such as insurance of goods located in a particular warehouse or insurance of baggage in a house,
Also the insurance of properties may be on a specific amount of possessions, such as theft or loss of property , Or money received by the cash or if a trader loses profits after the burning of his shop, And the maximum amount of the insured possessions is usually set.
we see from it that the insurance of properties stands out two persons, the insurer and the insured.
Second liability insurance
The insurance of liability is aimed at securing the insured from all the liabilities in case of any damage. The damage insured here is not damage to the possessions directly, as in the insurance of properties, but it’s the damage caused by the emergence of debt in the insured’s liability because of the realization of his tort responsibility, such as car accidents and turning of the fire if the neighbors house which was on fire or realizing of contractual relationship as a tenant and become responsible in case of fire . The insured harm is the emergence of debt because of the responsibility.
Therefore, It is sometimes called insurance of the debt, and since the insured’s possessions is a guarantee for this debt, then the damage is indirectly on the possessions as it receives the debt.
The liability insurance falls within the scope of damage insurance, and it is one of the two main branches, Even if the responsibility of the insured arises from harming the injured person on his body, If a person protected himself from the responsibility of car accidents, And then trampled a person on the road, then the injured person will return to him,
The insured in this case does not insure the injured person from the damage that was inflicted on his body , and the insurer provides the official insured with the pledge and not the injured,
the financial damage caused to the official insured by returning compensation to the injured .
So the liability insurance falls within the scope of damage insurance, And not in the insurance of people , Whether the responsibility arises for the damage of the owners on the possessions or the injury on the body,
The insurance of liability highlights three persons, insurer and insured responsible and the injured,
The injured person in this insurance can not be considered as the beneficiary for whom the insured is required for his benefit, but the conditions are for his benefit,
The insured has secured himself in the interest of himself, and does not insure the victim or insure himself in the interest of the victim,
And if the injured is due to sue the insured directly then he will win the case but by the law.
The risk insured in liability insurance is not the injury, But it is also provided damage to the insured from the return of the injured ,
Once the harm is inflicted on the injured person, it is only achieved by the return of the injured person to the insured, Then only the insured can claim the insurer for the pledge, and the place in the insurance of liability is usually not specified, Therefore, the insurer will often set a maximum limit demanded by the insured to scale his responsibility, Because the insurance will be paid upon the responsibility of the insured.
In other cases, he makes an undefined insurance in which he will be compensated in full, regardless of the extent of his liability, and he has to specify the place,
This is achieved if the person is responsible for something and he must return it to the owner, As in the case of the tenant’s liability for the fire, the place of insurance is designated as the leased eye that the tenant must return to the lessor.
Attorney / Mohamed Al Marzooqi
Mohamed Al Marzooqi advocates & Consultancy
Lawyer in Abu Dhabi, Dubai – UAE