Liability insurance contracts are one of five types of insurance contracts regulated in the Law on Insurance Business 2022. This article shares in detail the legal regulations surrounding liability insurance contracts according to current legal regulations. Execution.

CSPL: Articles 57, 58, 59, 60, 61 Insurance Business Law 2022

1. The insured object of a liability insurance contract

– According to the provisions of Article 57 of the Law on Insurance Business 2014, the insured object of a liability insurance contract is determined to be the insured’s civil liability towards a third person according to the provisions of law.

– In the 2015 Civil Code, there is no specific definition. “Civil liability” is, however when compared to Article 351 of the Civil Code with the following provisions:

Article 351. Civil liability due to breach of duty

1. The party with the obligation who violates the obligation must bear civil liability to the party with the right.

Breach of obligation is the failure of the obligee to perform the obligation on time, incomplete performance of the obligation or improper performance of the content of the obligation.

2. In case the obligor fails to properly perform its obligations due to a force majeure event, it is not subject to civil liability, unless otherwise agreed or otherwise provided by law.

3. The obligee is not subject to civil liability if it can be proven that the failure to perform the obligation is entirely due to the obligee’s fault.

It can be understood that civil liability is the obligation of one party to another party arising due to the damage-causing act of the perpetrator. In the field of insurance, Civil liability is defined as the obligation to compensate third parties for damages arising from the occurrence of an insured event.

2. Responsibilities of insurance enterprises and branches of foreign non-life insurance enterprises

– The liability of an insurance enterprise or branch of a foreign non-life insurance enterprise only arises if a third person requests compensation from the insured due to an act that causes damage to a third person during the insurance period.

– A third person has no right to directly request compensation from an insurance enterprise or branch of a foreign non-life insurance enterprise, unless otherwise provided for by law. other.

3. Limit of insurance liability

– Limit of insurance liability is the amount of money that an insurance enterprise, branch of a foreign non-life insurance enterprise must pay to the insured as agreed in the insurance contract.

– Within the scope of insurance liability limit, insurance enterprise, branch of a foreign non-life insurance enterprise must:

+ (1) Pay the insured the amount of money that according to the law the insured is responsible for compensating the third party.

+ (2) Pay the costs related to resolving disputes about liability to the third party and interest payable to the third party due to the insured’s delay in paying compensation according to the instructions of the insurance enterprise, branch of the foreign non-life insurance enterprise outside.

+ The total amount in (1) and (2) does not exceed the insurance liability limit, unless otherwise agreed in the insurance contract.

– In case the insured must pay a guarantee or deposit to ensure that assets are not retained or to avoid lawsuits in court, at the request of the insured and agreed in the insurance contract, the insurance company will pay Branches of foreign non-life insurance enterprises must provide guarantees or deposits within the limits of insurance liability.

4. Right to represent the insured person

Insurance enterprises and branches of foreign non-life insurance enterprises have the right to represent the insured person to negotiate with a third person on the level of compensation for damages, unless otherwise agreed in the insurance contract.

5. Compensation method

At the request of the insured, the insurance enterprise or branch of a foreign non-life insurance enterprise may directly compensate the insured or a third person who suffered damage.