Components of the insurance contract

Components of the insurance contract

The insurance contract establishes the legal relationship between the insurer and the insured, which obliges the insurer to pay the insurance amount if the insurance event is created and the guaranteed to pay the insurance premium in favor of the insurer. The insurance contract is a civil legal relationship that the current Civil Code governs. Civil legal relationships are distinguished from other legal links for their property character. Natural or legal persons appear as subjects of individual and coercive rights regulated by civil law norms.

Insurance, as a civil legal relationship, consists of three essential elements essential to its existence:
– the entities between which the public legal connection is established;
– the object of civil legal relationship;
– the content of this relationship, which consists of rights and
obligations of the parties deriving from the actual legal relationship.

From the wording of provision 1113, we find that the legislator has defined the meaning of both the contract of insurance of the property of the natural or legal person and the contract of I am ensuring the life and health of the natural person.

The meaning of a property insurance contract is given in paragraph “a” of Article 1113. The purpose of a person’s contract of life and health insurance is given in paragraph “b” of Article 1113. The changes that these contracts have in their object, wherein the first case, the purpose of the insurance contract is the property of the natural person. Or legal, while in the latter case, the object of this contract is the life and health of the natural person.

Also, the insurer’s obligations regarding the payment of the insurance amount are not the same in these two contracts.
Thus, in the case of property insurance, the insurer is obliged to compensate the insured for the damage suffered by the occurrence of the insurance case, understood within the amount specified in the contract, while in the case of insurance of the person, upon the presence of the event. Of the coverage, the insurer does not reimburse the damage in favor of the insured. Still, it is obliged to pay a certain amount, according to the conditions stipulated in the contract.

Keep in mind here that a person’s life and health are irreplaceable and cannot be converted into cash, whatever their amount, the reason why the legislator in the case of personal insurance has provided that the insured is obliged that upon the occurrence of the insurance, to pay in favor of the insured the amount of coverage offered in the contract, and not to compensate him for the damage suffered.

Form of the insurance contract for the very fact expressly provided for the Civil Code; the insurance contract is a formal solemn contract. An insurance contract is a legal, binding bilateral contract based on the mutual consent of the parties. This characteristic is expressly provided for in the Civil Code, according to which the insurance contract must be signed in writing, namely in the form of insurance proof or an insurance policy, because Otherwise, this contract is void. In this case, the structure of the contract is for validity (ad substantial) and is part of the content.

It follows that the legislator has not only restricted the autonomy of the parties will, in the sense that this autonomy of will has to be worn in a particular form which is the written form, but has also provided for the concrete way how this contract should be drafted, which is insurance proof or insurance policy.

Under these conditions, we can conclude that the insurance contract must be prepared in paper form and in the way of an insurance policy or insurance proof that the insurer issues to the insured; otherwise, it is invalid. Consequently, the contract will be null and void even if entered into before a notary under the rules for drawing up agreements in general.

An insurance contract is a principal contract because it is independent of any other obligation, unlike accessory contracts which cannot stand alone in local circulation. An insurance contract is a contract with remuneration as the insurer is obliged to pay the compensation or amount of insurance in case of occurrence of insurance. On the other hand, the insured must pay the insurance premium when receiving the insurance policy. The insurance contract is allied because it is not known when the insurance case may occur.