2.TYPES OF COVERAGE3
3.TYPES OF MOTOR INSURANCE POLICIES4
3.2.CARRIER LIABILITY INSURANCE8
3.4.THIRD PARTY LIABILITY INSURANCE12
3.4.1. THIRD PARTY LIABILITY INSURANCE IN ROMANIA12
3.4.2. INTERNATIONAL THIRD PARTY LIABILITY INSURANCE14
5.BAAR - ROMANIAN MOTOR INSURERS' BUREAU17
8.AUTO INSURANCE PRODUCTS IN ROMANIA38
Any vehicle driven on public roads must have a certain level of insurance. The motor insurance appeared for the first time at the beginning of the 20th century and was included in the category of insurance for accidents. In the second half of the century, due to the development of road transportation, impressive increase in the number of cars and their diversification, motor insurance was no longer only a type of insurance for accidents but became a new type of insurance as such. The total amount of insurance premiums in the case of motor insurance was in fact already higher then the total amount of insurance premiums cashed in for all other types of accidents. In fact, the need for motor insurance appeared short after the first cars were introduced at the end of the 19lh century, although at that time the number of cars was quite limited as only few could afford it. In Great Britain, the first motor insurers (“Law Accident” and “General Accident”) date from 1900 and were followed at the beginning of the 20th century by “Car and General” (1903) and “Motor Union” (1906). After the First World War, road transportation flourished mainly as a result of the new stimulating trend in the economy and the development of the car manufacturing industry. Simultaneously with the development of road transportation, there has been also an increase in the number of accidents and the lack of insurance made it impossible in many cases to cover up the losses or compensate the victims. Thus, insurance in order to protect innocent victims of accidents became also a social necessity. In Great Britain, the third party liability motor insurance became compulsory as a result of the “Road Traffic Act 1930”, but it was restricted to the injury or death of a person as a result of car accidents. First, the term “person” referred only to persons outside the vehicle but later on, the term was extended also to the car’s passengers. The example of Great Britain was soon followed by other countries, which led to a significant boom of motor insurance. Nowadays, and especially in the last 10 years, there has been a unique increase in the number of cars all over the world. Cars that once were a luxury product that only a few could afford became today a common good of high necessity.
2.Types of coverage
Although, at the beginning, the motor insurance included only protection for personal injury or other losses suffered by third parties, time brought in new types of protection. Thus, motor insurance is not limited to the insurance of the vehicle, but offer also other types of protection related to: merchandise insurance,
carrier's liability insurance,
third party liability insurance.
These types of insurance cover a large array of risks and have certain particularities that relate to insurable or non-insurable risks and the way they are underwritten. It is also worth mentioning that the motor insurance was influenced to a significant extent by the marine insurance.
3.Types of motor insurance policies
The insurance of merchandise during transportation may cover general or special risks, and thus, in such insurance contract, there are general and special insurance conditions. The insured amount is given by the value of the merchandise included in the insurance contract and agreed by the insurer. This amount...