CASUALTY INSURANCE

CASUALTY INSURANCEDAVID|LARRACAS|MACALALAD|ONGKIKO|ORINDAY|PABUSTAN|QUIROZDEFINITIONCasualty insurance includes all forms of insurance against loss or liability arising from ACCIDENT or MISHAP EXCLUDING certain types of loss or liability which are not within the scope of fire and marine insurance.

It cannot be transferred without the consent of the insurer.

RISK OR LOSSESA casualty insurance might be presumed to include any loss or damage when an accident is the cause of the loss. Thus it excludes losses arising from accident which are within the coverage of the other types of insurance.

Two General Divisions of Casualty InsuranceA. Insurance against specified perils which May affect the person and/or property of the insured

Such as: personal accident, robbery or theft, damage to or loss of motor vehicle, insolvency of debtors, defalcation (bad faith, deceit, misconduct, or dishonesty) of employees, etc.

B. Insurance against specified perils which may give rise to liability on the part of the insured for claims of injuries to others or for damage to their property

Such as: workmens compensation, motor vehicle liability, professional liability, products liability, etc.Kinds of Casualty InsuranceIncludes, but is not limited to:Employers liability insuranceMotor vehicle liability insurancePlate glass insuranceBurglary and theft insurancePersonal accident and health insurance as written by non-life insurance companiesOther substantially similar kinds of insuranceWhat is Liability Insurance?Said to be a contract of indemnity for the benefit of the insured and those in privity with him OR those to whom the law upon the grounds of public policy extends the indemnity against liability.Under this type of policy, indemnity is provided in respect to a legal liability to pay damages.Liabilities that are Insurable:Liability for Quasi-delict or Non-fulfillment of Contracts

Liability for Criminal Negligence- liability arising from deliberate criminal acts are not insurable.As a General Rule:

Liability insurance, like other forms of insurance, must be supported by an insurable interest in the insured, although there is some authority to the contrary.Insurable Interest in Liability Insurance Insurable InterestThis is to be found in the interest the insured has in the safety of person who may maintain or in the freedom from damage of property which may become the basis of suits against him in case their injury or destruction.The interest depends upon whether he may be charged by law with the liability against which insurance is taken out. Liability InsuranceIf one qualifies as an insured, it should be always be supported by an insurable interest.

General Distinctions:Insurance against liabilityThe coverage or liability of the insurer under the first attaches when the liability of the insured to the injured 3rd party attaches regardless of actual loss at the time.When Liability Insurance in Policy Payable3. One against actual loss.

4. An action against the insurer does not lie until an actual loss is sustained by the insured.

3rd Party Liability InsuranceThe insurer assumes the obligation of paying the injured 3rd parties to whom the insured is liable.In GeneralThe class into which particular policy falls depends on the intention of the parties as evidenced by the phraseology of the agreement in such respect in the policy.Rights of the Injured to Sue Insurer of Party at faultDepends on whether the contract of insurance is intended to benefit third persons also or only the insured.

When indemnity is against third person liability.When indemnity is against actual loss or payment.Basis of the Insurers LiabilitiesLiability of the insurer is based on contract.

Extent of the Insurers LiabilityOnly up to the extent of the insurance policy and that required by law..

Accident and Health InsuranceClosely Related PurposesAccident InsuranceFor pecuniary loss suffered as a result of injuries sustained in an accident.Health InsuranceFor pecuniary loss arising out of disease-related illness.Combination of CoveragesAccident insurance is frequently offered as supplement to life insuranceAccident insurance is also provided with other coverages, most prominently with motor vehicle insurance.Burden of ProofInsured's BeneficiaryInsurerMeaning of accident and accidentalas used in accident policyAccidentIt is an event that takes place without ones foresight or expectation from an unknown cause when it is an unusual effect of a known cause when it is not expectedCause may be Attributable to Fault or NegligenceThe terms do not, without qualification, exclude events resulting in damage or loss due to the fault, recklessness or negligence of third partiesRule as to death or injury arising from accidental or accidental meansUsually treated as synonymous.

GENERAL RULE:If it is the natural result of the insureds voluntary acts, unaccompanied by anything unforeseen except the death or injury; NOT DEATH OR INJURY BY ACCIDENT OR ACCIDENTAL MEANSEXCEPTIONSome additional unexpected independent. and unforeseen happening that brings about the result of death or injury.DEATH or INJURY is NOT THE NATURAL or PROBABLE RESULT of the INSUREDS VOLUNTARY ACT

Suicide VS.Willful Exposure to Needless PerilBoth signifies a disregard for ones life.

Suicide imports a positive act of ending ones life.Willful exposure to needless peril imports a reckless risking of ones life, almost suicidal in intent.EXAMPLESPerson walking a tightrope without any safety device.Person playing Russian RouletteWILLFUL EXPOSURE TO NEEDLESS PERIL.

#YOLO #JustRussianThingsMeaning of intentional as used in an accident policyImplies the exercise of the reasoning faculties, consciousness, and volition.

Where a provision of the policy excludes intentional injury, the intention of the person inflicting the injury is controlling.

EXAMPLE

#BackInjury #LiftPaMore #NoPainNoGainNo Action Clause in Liability InsuranceA clause that expressly disallows suing the insurer as co-defendant of the insured in a suit to determine the insureds liability to the third person.

It was held that the no action clause cannot prevail over the Rules of Court on joinder of causes of action and permissive joinder of causes of parties. (Sec. 5 of Rule 2 and Sec. 6 of Rule 3)

THANK YOU.DAVID|LARRACAS|MACALALAD|ONGKIKO|ORINDAY|PABUSTAN|QUIROZ