In contractual relations, legal practice, civil relations, the concepts of “object” and “subject” are often found. Insurance is an equally wide area of relationships, but not legal, but commercial. Therefore, in the same way there are participants in these relations with their expectations and interests. What must be understood as the object and subject of insurance?
What is a subject of insurance?
A subject is, first of all, an active participant in a process, an executor of an activity, carrying out actions to obtain any result.
For example, in the legal sphere, the subject is a person with a physical or legal status, who has rights and obligations.
In insurance, such a participant will be the insurance company itself (insurer), which carries out insurance activities. However, it is known that the emergence of commercial relations requires the presence of at least two parties. The other active side in insurance is the policyholder and beneficiaries. They will also be actors.
What is an insurance object?
The object is usually what the action or some activity is directed at; it is passive. The object is inextricably linked with the subject. The activity of the subject is precisely directed at the passive object.
In law, the object is a combination of various benefits in relation to which property or other legal relations may arise.
In insurance, the object will be material interests, to which, in fact, insurance is directed. This is the interest of the insured in the insurance of a particular risk. The definition of “property interests” is more common.
What is an insurance item?
Thus, it is clear what constitutes the subject and object of insurance. The subjects of insurance are the direct active participants in the transaction, the object is what the activities of the subjects are directed to - the property interests of the insured and beneficiary. And what, in fact, do we insure? What exactly is insurance coverage aimed at?
There is another significant concept in insurance - the subject of insurance. This is something tangible with which insurance is directly linked. After all, it is impossible to insure property interests on their own, they must be connected with something, or rather, from the damage or disappearance of something, they may arise in the future. The subject of insurance is what the insurance company takes on insurance .
Related concepts and terms
An insurance (or property) interest is expenses that do not yet exist at the time of insurance, which the policyholder or beneficiary has the risk of incurring upon the occurrence of an insured event related to the loss or damage of the insurance subject. Regarding the concepts of the object and the insurance subject, this is the object to which the activity of the subject is directed.
Insured event - an event that may occur with a certain degree of probability, in addition to the will of the insured and the insured, prescribed in the insurance contract. Upon the occurrence of insurance company pays money in the form of insurance payments.
Insurance payment is the amount of money that the insurance company pays to the policyholder or beneficiary under the insurance contract in the event of an insured event in the amount of the agreed insurance amount.
Sum insured - the sum insured by the contract of the insurer in each individual case upon the occurrence of an insurance event.
Insurance classification
There are many types and forms of insurance, the main ones are listed below:
1. On the basis of the intention and need for insurance, there is compulsory and voluntary insurance.
In case of compulsory insurance, the initiator is the state, creating requirements for compulsory insurance at the legislative level. Examples of such insurance are compulsory motor third party liability insurance (CTP), compulsory medical insurance (CHI).
In voluntary insurance, the decision on the need for insurance is made by the policyholder, if he has such a need.
2. On the subject of insurance and criteria of property interest, personal, property, risk insurance, as well as liability insurance are distinguished .
Personal insurance is aimed at life and health insurance, can be short-term (up to 1 year) and long-term (up to 25-30 years), can be combined, including the funded component. Health insurance also falls into this category.
Property insurance is aimed at neutralizing the material consequences of the risks associated with damage or loss of property (real estate, cars, etc.).
Risk insurance means insurance cover in case of financial risks, for example, related to non-fulfillment of contractual obligations in commercial transactions.
Liability insurance is connected with the coverage of damage to third parties in the event of the insured's fault. A vivid example is the well-known mandatory type of compulsory motor liability insurance.
The concepts of subject, object and subject, depending on types of insurance
Defining concepts change depending on the type of insurance. Each type has its own subject, object and subject of insurance. Although with a small caveat, the subjects of the type of insurance do not change, except in the form of ownership (legal entities or individuals) and the composition of participants.
So, the subject, subject and object of compulsory motor third party liability insurance will be:
- liability itself to third parties (item);
- an insurance company, the policyholder who suffered in an accident due to the fault of the policyholder (entities);
- property interest in covering the expenses of the insured person in an accident (object).
Moreover, the property interest is not the owner of the car injured in an accident, but the insured as the culprit of this accident.
The subject, subject and object of compulsory medical insurance are:
- the insured person and his health (item);
- insurance company, state or enterprises (entities);
- property interest in the form of free medical care (facility).
In voluntary life and health insurance, the subject will be the insured person and his life and health, the subjects will be the insurance company, the policyholder and beneficiaries, the subject will be the property interests of the policyholder and beneficiaries associated with the death of the insured person or their loss of health. Subjects and objects of health insurance in voluntary forms will be the same.
In property insurance, the subject will be buildings, houses, apartments, and the subject will be the insured's property interests related to their destruction or damage.
Subject, subjects and objects of social insurance - insured persons, the circle of which is determined by law (subject); social insurance fund, state, budgetary and private employers (entities); the material interests of the insured and their family members in the event of an event, the list of which is defined at the legislative level (object).
Conclusion
Thus, it can be seen that there are significant differences between the concepts of "subject", "object" and "subject" of insurance. The primary subject is what the insurance cover is aimed at, what determines the need for insurance in general. For example, when there is a house or a car that the policyholder values, then the object of insurance arises. Namely, property interests or, more simply put, potential losses that may arise in connection with the damage or loss of this property. And only then we can talk about subjective components. Since demand creates supply, not otherwise.