Liability insurance – contractual covers based on occurrence of an insured cause or claims made cover


Liability insurance represent elegant method of covering risk of bearinf financial consequences of own civil liability. In certain industries, state introduces compulsory liability insurances, with that in the field of ownership and use of motor vehicles is the most typical. Public interest in protection of damaged persons shows up in certain cases as transfer of burden on to insurance companies increasing social function without their approval and influence in that way. Extension of number of industries where there is compulsory liability insurance, without precise devising of a legal insurance frame with precise and acceptable economic implications for private insurance, is not acceptable from the aspect of policyholder protection and sustainable on a longer term. Beside the mentioned, it is necessary to make difference between liability insurance of various activities or types of liability and, in accordance with that, carry out liability insurance contract law reform. Characteristic of one type of liability insurance is not represented with the other, which may bring to unexpected results in a business practice. Practical consequences that are not balanced according to the insurance technic and a reasonable expectation of contractual parties, may not be generaly accepted. Therefore, it is necessary to allow greater contractual will in this field.