The compulsory car insurance contract
The motor vehicle symbolizes well-being, the comfort to reach destinations, a means of communication, but without forgetting that it is also the cause and origin of numerous accidents and extensive damage
The risks involved in a car are:
- Those that affect physical integrity.
- Those that affect your assets.
- Those that affect your person or rights.
To alleviate these risks, there are two types of insurance:
- Mandatory Insurance.
- Voluntary Insurance.
Its purpose is that through the Mandatory Insurance it is intended to cover the risk created by driving motor vehicles, against possible liabilities, losses or damages to third parties.
It is characterized by its obligation, causing harm to people (objective or risk liability) or causing damage to things ( Subjective Responsibility).
It is regulated by the Law on RC and insurance in the circulation of motor vehicles, Law 21/2007 of July 21, amended by Law 35/2015 on the reform of the system for the assessment of damages caused to people in accidents of circulation, the – Regulation 1507/2008 of September 12 that develops the previous Law and by the Insurance contract law 50/80.
Concepts of Compulsory Insurance
- Motor vehicle: Includes everything related to motorized vehicles that are suitable for driving on the earth’s surface, (including mopeds, special vehicles, trailers and semi-trailers) and whose putting into circulation requires administrative authorization, according to the legislation on traffic, circulation of motor vehicles and road safety.
- Fact of traffic: Realities derived from the risk created by driving motor vehicles. (Occurring both in garages and car parks, as well as on public and private roads or land suitable for both urban and interurban circulation, as well as on roads or land that, without having such aptitude, are for common use).NO events of circulation will be understood:
Those derived from the holding of sports events with motor vehicles in specialized circuits for that activity, without prejudice to the obligation to take out special insurance. derived from the performance of industrial or agricultural tasks by special motor vehicles for this purpose, without prejudice to its application in case of circulation on the roads or land mentioned above.NOTE: Judgment of the CJUE, the SOA extends the coverage of the function of the vehicle – Vehicles that serve as an instrument for the commission of intentional crimes against people and property, with the exception of crimes against traffic safety .NOTE: The TJ, admits its coverage as long as the right of repetition exists.
- Damage: The impairment suffered by the insured or by a third party in their patrimony, physical or material. As long as:
- The Third Party: Any person other than the insured.
Essential elements of the contract:
Risk: Possibility of a setback or misfortune occurring, affecting both the insured himself and a third party.
Validity of the contract if it did not exist at the time of its conclusion or the accident had occurred.
Premium Payment It is the fundamental obligation of the policyholder, and an essential element of the contract. At the same time, it is also the obligation of the insurer to pay the benefit in the event of the accident, if when the accident occurs it has not been paid, the insurer is released from its obligation. </ P>
- Effects of non-payment: </ strong> the insurer is released from its obligation. The contract is not started. Whenever there is FAULT on the part of the policyholder.
- Non-payment of following premiums:
During the month following expiration: the contractual relationship remains in force and deploying all its effectiveness. There is no possibility of repetition against the insured, only to receive the premium.
During the five months following the day after expiration: if the relationship has not been resolved, even though the insured person no longer has their own coverage, the injured party is liable with the power of repetition.
After six months to the day the unpaid premium expires: the contractual relationship is automatically terminated without having to be terminated. The insurer will be released. Requirement that it be the policyholder’s fault.
Obligations of the Policyholder:
- Duty to declare the loss. (The insurer may reject the damages that this has entailed).
- Facilitate all kinds of information and collaboration.
- Reduction of the consequences of the accident.
Obligations of the Insurer:
- Satisfaction with the agreed service
- Repair or replacement of damaged property
- Provision of a service.
- A capital or income