Insurance interest in insurance

To conclude any contract, it is necessary that the final results of the agreement satisfy all interested parties. The insurance interest lies precisely in achieving the required compromise. The insured person simply understands that in the event of an unforeseen situation, the insurer will necessarily pay the agreed financial compensation. How is insurance interest in insurance determined and what does the Law say about this?

First explanations of insurance interest

The first theories on the coincidence of insurance interests were developed in England. So, Judge Lawrence determines that the insurance interest arises, if there are circumstances related to the subject of interest, which can change this subject or its characteristics. Insurance is designed to minimize the damage caused by the circumstances, and provide the injured person with monetary compensation. Thus, if there are no circumstances that could affect the characteristics of the insured item, then there is no insurance interest.

Classical theory of insurance law

This idea is simpler in the classical theory of insurance law, and it belongs to the well-known economist Ehrenberg. He calls the insurance interest an interrelated relationship, by virtue of which a related person can incur a material loss. There are other definitions, but on the whole they express the same thought: there is no insurance contract if there is no interest in such an agreement. Hence the conclusion follows that the interest of insurance companies lies in the fact that the insured event does not come about with the insured good. For the insured person, this interest is not so pronounced and amounts to the following:

• If the insured event occurs, he will be paid a refund;
• If the insured event does not occur, it will still have some good.

Importance of insurance interest

The following explanation of insurance interest is distributed in insurance law:

• It determines the principle of material protection from unforeseen circumstances.
• Defines all important elements of the occurrence of an insurance obligation. Among them - the object of insurance itself, subject composition, performance and responsibility of the parties.

To the above, we should add that it is the insurance interest that determines the maximum amount of compensation that the policyholder can count on.

How it works?

Protection of insurance interests consists in material compensation of risks that an insurance object may face, after which its characteristics will change. For example, car insurance for CASCO obliges the insurance company to compensate for losses caused to the car as a result of emergency, natural disaster, traffic accident, theft or complete destruction. Here, the insurance interest is, in fact, a car: in its integrity and safety, both parties to the transaction are interested - both the car owner and the insurance company. The circumstances play against them. If circumstances have not changed the characteristics of the car to the final date of the policy, both parties can breathe peacefully. But if the car was stolen or destroyed, the insurance will protect the interests of the owner of the car, financially compensating him for the loss of the car.

Insurers and rogues

Unfortunately, not always the interests of owners and insurers coincide at the stage of signing the policy. Numerous cases of fraud with insurance forces insurers to look for other options for conducting their activities. For example, the recent scandal with insurance companies about the refusal to sell OSAGO insurance was caused by the actions of auto-workers who worked together with scammers. By arranging false accidents, they pumped so much money from the insurance companies through the court that they even suspended work in certain regions of Russia. It took a series of events on a federal scale to reduce losses incurred by insurance companies. Therefore, it should not be surprising that insurers try to protect their interests as much as possible and for this they use all permissible methods.

Tricks of insurers

Referring to the insurance company (UK) for legal payment, the policy holder often faces numerous tricks of lawyers of the insurance company. Classic cases of incorrect (to put it mildly) behavior of representatives of the UK are:

• Proposal to sign consent to compensation without examination. Having received 1/10 of the requested amount, the victim goes to court, where he is shown his own consent. In the consideration of the case, the court, respectively, refuses.
• The offer to inspect damaged property from experts of the UK. As a rule, "lured" experts give a very low amount of damage. By signing the examination report, the victim automatically agrees to a meager amount allocated by the insurance company. The court will be forced to refuse to satisfy the claim, since earlier the victim agreed with the preliminary sum of the damage caused. He confirmed his agreement with the signature.
• The victim of an accident "accidentally" takes the original notice of an accident without making a copy. The original is lost, and the victim can not receive compensation due to the absence of this document.
• Having filed an application for an accident, the victim waited several months for payment. During this time, he himself repaired the car. In payment, he was denied, as representatives of the UK considered an excuse for seeking compensation for the contrived. Photos from the place of the road and transport adventure, a damaged car and a road accident notification from the car owner did not remain.
• Under the terms of CASCO, the insurer does not compensate for the loss of the wheels, if the other parts of the car were not damaged. If the customer does not notify the police and the insurance company that his car was damaged in writing, the payment for CASCO will be refused.

How to protect your interests

This is only a small part of the tricks with which the victim has to deal with when contacting an insurance company. If you are confident that you can protect your rights, and are willing to spend time and money on it - bravely into battle. The rest are strongly encouraged to seek help from a legal company and to represent interests in insurance to professionals.

Lawyers and insurance companies

Representation of interests in the insurance company has long turned into a special kind of business. As a rule, the victim does not play any role here - the protagonists are the representatives of the victim (avturists) and agents of the insurer. Representation of interests in an insurance company is the specialization of many legal bureaus. Both sides have a thorough knowledge of insurance legislation and are able to fight on an equal footing in the courtroom.

Lawyers are able to conduct correct procedural actions, organize an independent examination and defend the insurance interest of the car owner at the court. The cost of professional services is completely compensated by the money owed to the insurance company. That lawyers have accepted business management, it is necessary to issue the power of attorney. Interests insurance company will protect itself, well, and the victim should be sure that with the help of a lawyer, he will necessarily receive the money due to him.