The insurance contract contains liability determination terms. These are the terms on which the compensation is paid. In other words, defining the damages and other events for which the insurance compensation is paid. For example, it can be determined that compensation for work during the workplace is compensated.
In general, the insurance contract also includes liability limitation clauses. The terms of the restriction indicate the damages that are not covered by the insurance. For example, it has been possible to determine that insurance does not compensate for accidents caused by fighting or self-defense. If such damage is excluded from the insurance contract, the insurer will not be liable for the damage.
If the conditions are unreasonable for the insured or their application would lead to unreasonableness, they may be moderated. An individual condition can also be completely ignored.
Often, the insurance contract has been standard terms and conditions. They alone product produced by the other party of contract, which are repeated a number of insurance policies. They are the same content, although the contract is different. Standard terms are often included as an appendix to the actual insurance contract. An insurance contract may include an indication that “this contract is subject to the general contract terms XX.”
Normally, the insurance company will make standard terms. If the standard terms are unclear, they will be interpreted to the detriment of their author. That is, if the insurance company has made unclear terms, they are interpreted in the interest of the policyholder.
The terms of the insurance can not violate the mandatory provisions of the Insurance Contracts Act. Compulsory provisions are laws that can not be otherwise agreed by agreement. They are provided for policyholder protection. In other words, the terms of the insurance can not deviate from the law to the detriment of the policyholder.