Legal Nature of Liability Insurance

Abstract

The question of the legal nature of liability insurance is a subject of constant attention, given the specificities of this type of insurance relating to the subject matter of insurance, the status of the insurer in the contract, the goal of the insured to be reached by concluding the contract on this type of insurance, the obligation to report the occurrence of the insured event, the status of the third injured party, etc. The author gives several opinions on the legal nature of this type of insurance, and also analyzes many institutes regarding the conclusion and execution of liability insurance contracts. The liability insurance belongs to the property insurance, but there are many differences. These differences lead to more questions, which primarily concern the liability of the insured as a subject matter of insurance, the possibility for a third injured party to make a direct claim for compensation against the insurer, and the limited amount of insurance. Particular attention is paid in the paper to the relationship of the insured and the insurer, as well as the relationship of the third injured party and the insurer. In addition, the author refers to certain provisions of the Act on Obligations in this area, as well as the provisions of the German Act on Insurance Contracts, which regulates in a much more detailed way some issues related to the legal nature of liability insurance. The paper concludes that liability insurance also includes the public interest, which relates to the protection of third parties, whether or not they can be determined.