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Subject of Contract
Article 394
The subject of a contract for property insurance may be any right that may be evaluated in money for the assured.
Conclusion of Contract without Authorization
Article 395
- (1)
- A person who in his own name insures the property of another, shall be personally liable for payment of the insurance premium.
- (2)
- Where the premium has been regularly paid, the approval of the contract shall be valid even where provided after the occurrence of the insurance event.
Sum Insured
Article 396
- (1)
- The amount for which property is insured may not exceed its actual value. Actual value shall be considered the value for which another property of the same quality could be purchased to substitute the insured property.
- (2)
- The insurer shall be entitled to inspect the property in order to ascertain the actual value.
Over Insurance
Article 397
- (1)
- Where a sum insured has been agreed which exceeds the actual value of the property insured, the contract shall remain in force, whereas the sum insured shall be reduced to the amount of the actual value.
- (2)
- The insurer shall not be obliged to return the part of the premium corresponding to the difference between the sum insured and the actual value, unless the assured has acted in good faith.
Under Insurance
Article 398
- (1)
- Where a sum insured has been agreed which is less than the actual value of the property insured, and the insured item has been destroyed or damaged, the indemnity shall be determined in accordance with the ratio of the sum insured to the actual value.
- (2)
- Where the insurance contract has been concluded against first risk, the full amount of damages shall be compensated, provided it does not exceed the sum insured.
Insurance Indemnity
Article 399
- (1)
- In the case of occurrence of an insurance event the insurer shall be obliged to pay the insurance indemnity within the agreed time period. Such time period may not be longer than fifteen days and shall commence as from the date on which the assured has fulfilled his obligations under Article 389.
- (2)
- The indemnity shall be equal to the amount of damages as of the date of occurrence of the event.
Partial Destruction
Article 400
In the case of partial destruction of the insured property it shall be considered insured to an amount equal to the difference between the initial and the paid sum insured.
Transfer of insured property
Article 401
- (1)
- Where the insured property has been transferred, the successor shall subrogate for the rights under the contract, unless otherwise agreed.
- (2)
- The successor shall be liable jointly and severally for the premium not paid prior to the subrogation.
- (3)
- The insurer shall be entitled to claim the premium from the transferor, as long as he is not informed of the transfer.
- (4)
- The insurer and the successor may renounce the contract by notification to the other party, made not later than 30 days as from coming of knowledge of the transfer.
Subrogation into the Rights of the Assured
Article 402
- (1)
- By payment of the insurance indemnity the insurer shall subrogate to the rights of the assured against the person who has caused the damage.
- (2)
- Where the person who has caused the damage is a spouse, a relative of ascending or descending line or their spouse, as well as where he belongs to the household of the assured, the insured shall have the rights under paragraph 1 if that person has acted intentionally.
- (3)
- The assured shall be obliged to cooperate with the insurer in exercising his rights against the person who has caused the damage.
- (4)
- Where the property of the person who has caused the damage is insufficient, the insurer shall be satisfied after the assured.
Insurance Against Transportation Risks
Article 403
- (1)
- An insurance contract for road, air and river transportation shall cover all risks to which the cargo is exposed, unless otherwise agreed.
- (2)
- The cargo transported may be insured to the market price it has at the point of destination.
- (3)
- An insurance contract shall come into force by delivery of the cargo for transportation and shall continue until the delivery to the consignee, inclusive of re-loading and warehousing, unless otherwise agreed.
- (4)
- The insurer shall not cover risks after discontinuing the transportation or deviation from the route, unless otherwise agreed.
- (5)
- If the consignee under the transportation contract accepts the cargo before the damages have been ascertained, the insurer shall not be liable for compensation.
- (6)
- If the damages could not be visually noticed on the outside upon delivery, but have been ascertained thereafter within the term provided for by the rules for the respective type of transportation, the insurer shall owe compensation only if the consignee notifies him thereof, but not later than fifteen days following the receipt of the cargo.
Subscription Insurance
Article 404
- (1)
- The subscription insurance contract shall provide coverage of the rights of the assured for a certain period of time.
- (2)
- The assured shall be obliged to notify in advance the insurer about the property insured in each individual case, by a procedure provided in the contract. In such cases the insurer shall be obliged to issue separate documents upon request by the assured.
- (3)
- Each of the parties shall be entitled to terminate the contract by a one-month advance notice in writing, unless otherwise agreed.
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