Classification of Motor Third-Party Liability, All Risks, and Transport Insurance: Branches 1 to 18

— INSURANCE CONTROL SERVICE —

Brussels, 20 December 1991

NOTICE NO. D. 94

Subject: Classification of Motor Third-Party Liability, All Risks, and Transport Insurance: Branches 1 to 18.

I. INTRODUCTION

The present notice replaces Notice D.20, which has become outdated due to the introduction of new insurance products or formulas.

Its purpose is to assist companies wishing to propose new products in determining whether they must submit an authorization request for a specific branch or whether they can bring their new products to market after simple notification to the Control Service.

II. CLASSIFICATION CRITERIA

"Insurance risks" are classified based on 3 criteria:

1. Hazard
   The event that can give rise to a guarantee under the contract (Examples: theft, fire, accident, liability-causing event ...).

2. Subject matter of the risk
   The person (or group of persons), the property (or the totality of properties), the liability of a person (or of a group of persons), the financial loss ... that is the subject of the insurance contract and that is exposed to being affected (or suffering) by the risk if a hazard occurs.

3. Coverage
   This is the expression of the insurer's obligation towards the insureds if a hazard occurs.

III. THE CONCEPTS OF PRINCIPAL RISK AND ADDITIONAL RISK
------------------------------------------------- Reference is made to Article 6 of the Royal Decree containing the general regulation regarding the control of insurance companies.

This article clarifies under what conditions an insurance company can cover risks that are additional to a principal risk for which authorization has already been obtained, without requiring separate authorization.

IV. APPENDIX

Attached is the document showing the classification of branches 1 to 18.

You are requested to acknowledge receipt of this notice and to inform us in writing of any difficulties encountered in its interpretation.

J.-M. DELPORTE

KORTENBERGELAAN 61 - 1040 BRUSSELS - TELEPHONE 02 72 00 75 - TELEX 02 733 51 29

BRANCH 01 - ACCIDENTS

1. Hazard
   Accident causing bodily injury to the persons who are the subject of the risk (with possible extension to illness or certain conditions).

2. Subject matter of the risk
   A person (with possible extension to family members) or a community of persons.

3. Coverage
   Lump-sum compensation, damages, or compensation comparable to that provided for in the legislation on work accidents (Law of 3 July 1967 or of 10 April 1971), or compensation in accordance with common law.

4. Examples

   • COVERAGE COMPARABLE TO THAT PROVIDED BY LAW.
     • Extra-legal (persons not subject to the law) - Law of 3 July 1967 or of 10 April 1971.
     • Extra-legal - supplementary insurance (subject and non-subject persons) - Law of 10 April 1971.
     • Guaranteed wage.
     • Excess of law (insurance of the part of the wage exceeding the legal ceiling).
     • Extension to illness in general or occupational disease.
     • Extension to private life.
   • LUMP-SUM TYPE COVERAGE (with possibly a part of damages).
     Individual policies (possibly family)
     • Private and professional life (general)
     • Private life only (general)
     • Professional life only
       • general (limited to professional life)

• specific policies
  examples:

  • policies for a specific profession such as for farmers, highway police or police officers, public officials, surgeons and dentists, acrobats, artists ...;
  • policies for professional sports (professional footballers, professional cyclists, professional boxers, ...) ;
  • policies for schoolchildren and students.

• Traffic
  examples:

  • drivers and passengers of two-wheelers ;
  • occupants of cars or other vehicles ;
  • train passengers ;
  • passengers of scheduled and charter flights ;
  • pedestrians.

• Tourism and travel
  examples:

  • general ;
  • land, water and air plus accommodation ;
  • private car.

• Sport as an amateur
  examples:

  • winter sports, pleasure boating, hang gliding, speleology, deep-sea diving, ...

• Miscellaneous
  examples:

  • political and social unrest (strike, uprising, war, civil war, civil unrest ...) ;
  • natural disasters and industrial disasters (flood, earthquake, volcanic eruption, tsunami, hurricane, nuclear accident, chemical pollution ...) ;
  • policies related to a credit at a financial institution.
    Collective policies
    Examples:

• general ;

• school institution ;

• monastic community ;

• sports club ;

• sports ;

• sports events in stadiums ;

• ski classes.

• DAMAGES TYPE COVERAGE (with possibly a part of lump-sum compensation).

• COMMON LAW TYPE COVERAGE.
  Example:

  • traffic (driver).

BRANCH 02 - SICKNESS

1. Hazard
   Illness with possible extension to the accident affecting the persons who are the subject of the risk.

2. Subject matter of the risk
   A person (with possible extension to family members) or a community of persons.

3. Coverage
   Lump-sum compensation, damages, or combinations thereof.

4. Examples

   • Incapacity for work and disability.
     Guaranteed income, not linked to life insurance (annuity, capital). Incapacity for work - daily allowance.
   • Medical care.
     General.
     Surgical interventions.
     Hospitalization.
     Outpatient medical costs.
     Childbirth.
   • Diseases.
     General.
     "Severe" diseases.
     Special cases e.g. : cancer, infantile paralysis, childhood diseases.
   • Professions.
     Medical and paramedical professions.
     Self-employed.
     Professional sportsmen.
     Artists.
   • Tourism and travel.
     General.
     Medical costs.
     Tropical diseases.
     Hospitalization.

BRANCH 03 - MOTOR VEHICLE HULL (EXCLUDING RAILWAY ROLLING STOCK) ------------------------------------------------------------------------

1. Hazard
   Event that can cause damage to a vehicle (excluding railway rolling stock) that is the subject of the risk, including theft.

2. Subject matter of the risk
   Vehicle or a fleet of vehicles belonging to a person or a community of persons.

   Examples :

   • motor vehicles (cars, trucks, buses, tanks, motorcycles, trolleybuses, ...) ;
   • special motor vehicles (construction vehicles, agricultural vehicles, ...) regarding traffic risk ;
   • towed non-motorized vehicles (caravans, trailers, ...) ;
   • other non-motorized vehicles (carriages, bicycles, sailboats, ...).

3. Coverage
   Various modalities regarding compensation for damage.

BRANCH 04 - HULL OF RAILWAY ROLLING STOCK

1. Hazard
   Event that can cause damage to railway rolling stock, including theft.

2. Subject matter of the risk
   Vehicle or group of vehicles.

   Examples :

   • railways ;
   • trams ;
   • cable cars ;
   • mountain lifts ;
   • chairlifts.

3. Coverage
   Various modalities for compensation for damage.

BRANCH 05 - AIRCRAFT HULL

1. Hazard
   Event that can cause damage to an aircraft that is the subject of the risk, including theft.

2. Subject matter of the risk
   Vehicle or group of vehicles belonging to a person or a community of persons (legal person or natural person).

   Examples :

   • airplanes, helicopters, hydrofoils, seaplanes, U.L.M.'s ;
   • dirigibles, balloons, hot air balloons ;
   • gliders, hang gliders, parachutists ;
   • spacecraft.

3. Coverage
   Various modalities for compensation for damage.

BRANCH 06 - HULL OF SEA AND INLAND WATERWAY VESSELS -------------------------------------

1. Hazard
   Events that can cause damage to a sea or inland vessel or a vessel for navigation on lakes, including theft.

2. Subject matter of the risk
   Vessel or group of vessels.

   Examples :

   • ships, boats, hovercrafts ;
   • oil rigs, floating pontoons, constructions ;
   • tugboats, dredgers, pushboats.

3. Coverage
   Various modalities for compensation for damage.

BRANCH 07 - CARRIED GOODS

1. Hazard
   All facts that can cause damage, including theft and non-delivery.

2. Subject matter of the risk
   Merchandise, luggage, or any other carried good and/or in storage or in transit, regardless of the type of transport vehicle.

   Examples :

   • goods in general ;
   • refrigerated transport and isothermal transport ;
   • liquids, gas, explosives ;
   • luggage ;
   • special objects ;
   • collections, works of art, diamonds, jewelry ;
   • animals.

3. Coverage
   Various modalities for compensation for damage.

BRANCH 08 - FIRE AND NATURAL DISASTERS

1. Hazards
   Fire, explosion, smoke, subsidence, nuclear energy, storm, other natural elements (lightning, earthquake, flood, tsunami, ...) except hail and frost.

   Coverage for labor disputes, attacks, acts of malice and vandalism, and terrorism fall under Branch 08 insofar as they mainly concern hazards intended in the previous paragraph (e.g. a fire contract in the event of labor disputes).

   The same applies if they are related to these aforementioned hazards (e.g. : the mandatory coverage in simple risks of the damage "labor disputes - attacks" in the event of underwriting the fire coverage).

2. Subject matter of the risk
   Property or group of properties (other than those belonging to branches 03, 04, 05, 06 and 07), as well as the civil liability of the tenant or user for damage caused to these properties.

   Examples :

   • houses, shops, farms ;
   • companies, factories, warehouses ;
   • schools, hospitals ;
   • mobile homes, camping equipment ;
   • forests, woods.

3. Coverage
   Various modalities for the compensation of damage caused to the subject matter of the risk.

BRANCH 09 - OTHER DAMAGE TO PROPERTY

1. Hazards
   Hail, frost, and all other hazards than those intended in Branch 08.

   Examples :

   • electricity risk ;
   • contact with air or space vehicles ;
   • premature activation or accidental leakage of automatic fire extinguishing systems ;
   • theft ;
   • loss ;
   • snow ;
   • water damage ;
   • glass breakage ;
   • defrosting ;
   • accidents, illness, death of animals ;
   • harsh weather, insects, diseases.

   Coverage for labor disputes, attacks, acts of malice and vandalism, terrorism, and war fall under Branch 09 insofar as they mainly concern hazards intended in the previous paragraph. The same applies if they are related to these aforementioned hazards.

2. Subject matter of the risk
   Property or group of properties (other than those belonging to branches 03, 04, 05, 06 and 07), as well as the civil liability of the tenant or user for damage caused to these properties.

   Examples :

   • houses, shops, farms, care institutions ;
   • factories, companies, warehouses ;
   • exhibitions and trade fairs ;
   • special objects (furs, weapons, films, ...) ;
   • luggage ;
   • machines ;
   • construction sites ;
   • construction equipment ;
   • animals.

3. Coverage
   Various modalities for the compensation of damage caused to the subject matter of the risk.

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BRANCH 10 - MOTOR VEHICLE THIRD-PARTY LIABILITY

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1. Hazards

Liability-causing events or accidents involving the liability of a person or a group of persons.

2. Subject matter of the risk

Liability of a person or a group of persons arising from the use of a vehicle.

3. Coverage

Various, with the aim of restoring damage caused to third parties.

4. a. Branch 10a

• Motor vehicle third-party liability towards third parties - Law of 21 November 1989.
• Third-party liability of the organizers of speed, regularity, or handling races and competitions by means of motor vehicles (including participants).

4. b. Branch 10b

• Contractual liability of the road carrier.
  • Carried persons.
  • Merchandise, luggage, and other goods.
• Operational third-party liability (transport companies).
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BRANCH 11 - AIRCRAFT THIRD-PARTY LIABILITY

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1. Hazards

Liability-causing events or accidents involving the liability of a person or a group of persons.

2. Subject matter of the risk

Liability of a person or a group of persons arising from the use of an aircraft.

• Third-party liability towards third parties.
  Rome Convention.
• Operational third-party liability (transport companies).
• Carrier third-party liability (contractual).
  • Carried persons (Warsaw Convention).
  • Merchandise, luggage, and other goods.
• Third-party liability of the organizers of air meetings.

3. Coverage

Various according to the nature of the contract, with the aim of compensating for damage caused to third parties. ```

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BRANCH 12 - SEA AND INLAND WATERWAY VESSEL THIRD-PARTY LIABILITY

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1. Hazards

Liability-causing events or accidents involving the liability of a person or a group of persons.

2. Subject matter of the risk

Liability of a person or a group of persons arising from the use of a sea or inland vessel or a vessel for navigation on lakes.

• Third-party liability towards third parties :
  • shipowners ;
  • captains ;
  • pleasure craft.
• Operational third-party liability :
  • transport ;
  • shipbuilders ;
  • repairers.
• Carrier third-party liability (contractual) :
  • carried persons ;
  • merchandise, luggage, and all other goods.
• Ship charterer third-party liability.

3. Coverage

Various, with the aim of compensating for damage caused to third parties. ```

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BRANCH 13 - GENERAL CIVIL LIABILITY
(other than those mentioned under branches 10, 11 and 12)

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1. Hazards

Liability-causing event or accident involving the liability of a person or a group of persons.

2. Subject matter of the risk

Liability of a person or a group of persons.

3. Coverage

among others :

• in accordance with common law (articles 1382 to 1386bis + possibly neighborhood nuisance) ;
• contractual liability ;
• objective liability.

4. Examples

• Railway third-party liability
  • Third-party liability towards third parties.
  • Carrier third-party liability (contractual).
  • Operational third-party liability (transport company).
• Private life third-party liability (+ possible extension to professional life)
  • general
  • specific
    • Third-party liability for dogs and other pets (including horses and carriages).
    • Third-party liability for buildings, TV, and antennas.
    • Third-party liability for hunting and use of firearms.
    • Third-party liability for private organization by the insured of temporary activities, such as the organization of games, parades, shows, processions, festivities, balls, fancy-fairs, bazaars, exhibitions, races, trips, competitions.
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19.-

• Professional activities third-party liability
  • Operational third-party liability for commercial, industrial, agricultural, or craft enterprises.
  • Third-party liability after delivery (product liability) or after execution of works.
  • Third-party liability for administrations and public institutions.
  • Third-party liability for nuclear installations.
  • Third-party liability for persons or associations of persons (including their staff) providing intellectual services.
  • Ten-year third-party liability for architects and contractors.
  • Third-party liability for buildings, antennas, signs for professional purposes.
  • Third-party liability for educational institutions.
  • Church fabric.
  • Organization - professionally - by the insured of temporary activities such as games, parades, ...
• Third-party liability for public access facilities
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BRANCH 14 - CREDIT

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1. Hazards

Unpaid debt claim.

2. Subject matter of the risk

Any industrial, commercial, or financial enterprise with a credit risk towards its customers.

3. Coverage

Service provision and compensation of unpaid debt claims.

Examples :

• general insolvency ;
• export credit ;
• installment sales - personal loans ;
• mortgage credit ;
• agricultural credit ;
• consignment ;
• leasing ;
• factoring ;
• credit life insurance.

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