When the rearview mirror on a car is lost, will the insurance company compensate?

In the car physical insurance contract, there are insurance provisions in case the car is stolen or the entire car is stolen, asking when the rearview mirror is lost, how much will the insurance company compensate?

1. When the rearview mirror on a car is lost, will the insurance company compensate? If so, how much will be compensated?

When the rearview mirror on a car is lost, will the insurance company compensate? In Clause 27, Article 4 of the Law on Insurance Business 2022, it is stipulated:

An insurance event is an objective event agreed upon by the parties or prescribed by law, and when that event occurs, the insurance enterprise or insurance enterprise branch shall not foreign life insurance companies, mutual organizations providing micro insurance must compensate and pay insurance premiums as agreed in the insurance contract.

And Article 20 of the Law on Insurance Business 2022 stipulates:

Rights and obligations of insurance enterprises and branches of foreign non-life insurance enterprises

1. Insurance enterprises and branches of foreign non-life insurance enterprises have the following rights:

…

d) Refuse to compensate or pay insurance in cases not within the scope of insurance liability or in cases where insurance liability is excluded as agreed in the insurance contract;

…

2. Insurance enterprises and branches of foreign non-life insurance enterprises have the following obligations:

…

d) Compensate and pay insurance money when an insured event occurs;

Accordingly, it is necessary to see what the scope of insurance and insurance events in this insurance contract are specifically agreed upon.

If agreed upon in a financial insurance contract Automobile property only has an insurance agreement in the case of “insurance in case the vehicle is stolen or robbed of the entire vehicle”, then according to the wording of the agreement, the insurance event must be theft or robbery of the entire vehicle.

In case a part of the vehicle is stolen, the insurance event has not yet occurred so compensation cannot be claimed.

2. What forms of compensation can the property insurance buyer and the insurance enterprise agree on?

The property insurance buyer and the insurance enterprise can agree on one of the forms of compensation specified in Clause 1, Article 52 of the 2022 Insurance Business Law, including:

Forms of compensation usually

1. The insurance buyer and the insurance enterprise or branch of a foreign non-life insurance enterprise may agree on one of the following forms of compensation:

a) Repair damaged property;

b) Replace damaged property with other property;

c) Pay compensation.

2. In case an insurance enterprise, a branch of a foreign non-life insurance enterprise and the insurance buyer cannot agree on the form of compensation, the compensation will be made in money.

3. In case of compensation specified in Point b and Point c, Clause 1 of this Article, the insurance enterprise or branch of the foreign non-life insurance enterprise has the right to recover the damaged property after replacing or compensating in full according to the market price of the property.

Thus, the property insurance buyer and the insurance enterprise can agree on one of the forms of compensation in the form of compensation. following:

(1) Repair damaged property;

(2) Replace damaged property with other property;

(3) Pay compensation.

3. How is transfer of claim rights for property insurance regulated?

Transfer of claim rights for property insurance is regulated in Article 54 of the 2022 Law on Insurance Business including:

(1) When an insurance event occurs, in case a third person is responsible for compensation due to an act that causes damage to the insured, proceed as follows:

– After the insurance enterprise or branch of a foreign non-life insurance enterprise pays compensation, the insured person is responsible for transferring to the insurance enterprise or branch of a foreign non-life insurance enterprise the right to request the third person to reimburse the amount that the enterprise has compensated;

– Insurance enterprises and branches of foreign non-life insurance enterprises have the right to deduct the compensation amount depending on the degree of fault of the insured person if the insured person refuses to transfer the right to request compensation from a third party.

(2) When an insurance enterprise or branch of a foreign non-life insurance enterprise exercises the right to claim compensation against a third person, the insured person is responsible for providing the insurance enterprise or branch of a foreign non-life insurance enterprise with necessary documents and relevant information as agreed in the insurance contract.

(3) An insurance enterprise or branch of a foreign non-life insurance enterprise may not request the insured person’s father, mother, spouse, or children to reimburse the amount of money that the insurance enterprise or branch of a foreign non-life insurance enterprise has paid to the insured person, unless these persons intentionally caused the loss.