Basic information about insurance
The insurance policy
The policy is written instrument which sets out the terms of the contract. Although not essential for the existence of the contract, the insurance practice has imposed no exceptions. The policy is the main document of the insurance contract, which state the rights and obligations of the parties, is a private document written in various places. The general conditions are printed, while the conditions are usually typed.
Basic information about insurance
All conditions of safety are in the contract. This clause should be read very carefully. Every year, insurers make large sums of money for benefits written into the contract and are not claimed by the insured.
Insurance all over the world, has a dual role, the economic and social
Economic function: it eliminates the uncertainty about the future achieving economic efficiency, wealth stabilized, combat poverty and encourage saving.
Social function: it stimulates the forecast, contributing to improving health.
Essential conditions of insurance in Spain: It is regulated by law 50/80 of Insurance Contract.
Can not be assured (art. 19 LCS) accidents caused by bad faith of the insured. The bad faith penalty is not assimilated, without more, to civil, with important consequences (especially in automobiles).
Oversure, underinsurance .- The insured risk can not be significantly higher or lower than the real value of the thing or the insured (sum assured), so it is essential to a prudent assessment of the insured object. In the first case (Overinsurance) the casualty, the insurance only compensate the damage to the real value of the thing, though the insured was older. In the case of underinsurance, the Cia. compensated in the same proportion in covering the security interest: if the thing was worth € 1000 and secured by 500, causing damage to 500, indemnify half of it: 250 €. Applied in these cases, the clause entitled “provide compensation.” This clause applies to all types of insurance, except those referred to as first loss insurance