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

— INSURANCE CONTROL SERVICE —

Brussels, 20 December 1991

COMMUNICATION NO. D.94

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

I. INTRODUCTION

The present communication replaces Communication D.20, which has become outdated due to the introduction of new insurance products or formulas.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 application for a specific branch or whether they can launch their new products on the market after simple notification to the Control Service.

II. CLASSIFICATION CRITERIA

"Insurance risks" are classified based on 3 criteria:

1. Hazard

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

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2. Subject matter of the risk

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The person (or group of persons), the property (or the set of goods), the liability of a person (or group of persons), the financial loss... that is the subject of the insurance contract and that is exposed to being affected (or suffering) as a hazard occurs.

3. Coverage

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This is the expression of the insurer's obligation towards the insureds, in the event that a hazard occurs.

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

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

IV. APPENDIX

You will find attached the document displaying the classification of branches 1 to 18.

You are requested to inform us now of the receipt of this communication and to bring to our written attention any difficulties that may arise during its interpretation.

[Signature]
J.-M. DELPORTE

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3.-

BRANCH 01 - ACCIDENTS

1. Hazard

   Accident causing bodily injury to the persons who are the subject of the risk (with possible additional 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 payment, compensation, or a payment comparable to that provided for in the legislation on work accidents (Law of 3 July 1967 or of 10 April 1971), or a payment in accordance with common law.

4. Examples

   • COVERAGE COMPARABLE TO THAT PROVIDED BY LAW.

     • Extra-statutory (persons not subject to the law) - Law of 3 July 1967 or of 10 April 1971.
     • Extra-statutory - supplementary insurance (subject and non-subject persons) - Law of 10 April 1971.
     • Guaranteed wage.
     • Excess of law (insurance of the part of the wage that exceeds the legal ceiling).
     • Extension to illness in general or occupational disease.
     • Extension to private life.

   • LUMP-SUM TYPE COVERAGE (with possibly a part of compensation).
     ---------------------------------------------------------------- Individual policies (possibly family)

     • Private and professional life (general)
     • Private life only (general)
     • Professional life only
       • general (limited to professional life)

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4.-

• 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 a professional sport (professional football
  players, 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, speleo-
      logy, deep-sea diving, ...

  • Miscellaneous
    examples:

    • political and social unrest (strike, popular 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 stadium ;
  • ski classes.

• LUMP-SUM TYPE COVERAGE.

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5.-

• COMMON LAW TYPE COVERAGE.

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  Example:

  • traffic (driver).

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BRANCH 02 - ILLNESS

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 payment, compensation, 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.
     "Serious" diseases.
     Special cases e.g. : cancer, childhood paralysis, childhood diseases.

   • Professions.
     Medical and paramedical professions.
     Self-employed.
     Professional sportsmen.
     Artists.

   • Tourism and travel.
     General.
     Medical costs.
     Tropical diseases.
     Hospitalization.

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BRANCH 03 - MOTOR VEHICLE CASCO (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.

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BRANCH 04 - CASCO RAILWAY ROLLING STOCK

1. Hazard

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

2. Subject matter of the risk

   Vehicle or set of vehicles.

   Examples :

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

3. Coverage

   Various modalities for compensation.

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9.-

BRANCH 05 - AIRCRAFT CASCO

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 set 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, parachutes ;
   • spacecraft.

3. Coverage

   Various modalities for compensation.

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BRANCH 06 - CASCO SEA AND INLAND WATERWAY VESSELS ------------------------------------

1. Hazard

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

2. Subject matter of the risk

   Vessel or set of vessels.

   Examples :

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

3. Coverage

   Various modalities for compensation.

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11.-

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 goods and/or in residence 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.

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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 set of goods (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 goods.

   Examples :

   • homes, shops, farms ;
   • enterprises, factories, warehouses ;
   • school institutions, hospitals ;
   • mobile homes, camping equipment ;
   • forests, woods.

3. Coverage

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

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13.-

BRANCH 09 - OTHER DAMAGE TO GOODS

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 set of goods (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 goods.

   Examples :

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

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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 -----------------------------

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.
• Third-party liability of operation (transport companies).

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BRANCH 11 - AIRCRAFT THIRD-PARTY LIABILITY -----------------------------

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.
     Rome Convention.
   • Third-party liability of operation (transport companies).
   • Third-party liability of the carrier (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 damage caused to third parties.

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

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 :
     • shipowners ;
     • captains ;
     • pleasure craft.
   • Third-party liability of operation :
     • transport ;
     • shipbuilders ;
     • repairers.
   • Third-party liability of carrier (contractual) :
     • carried persons ;
     • merchandise, luggage, and all other goods.
   • Third-party liability of the ship charterer.

3. Coverage

   Various, with the aim of compensating 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 neighbor nuisance) ;
   • contractual liability ;
   • objective liability.

4. Examples

   • Third-party liability of the railway

     • Third-party liability towards third parties.
     • Third-party liability of carrier (contractual).
     • Third-party liability of operation (transport company).

   • Third-party liability private life (+ possible extension to professional life)

     • general
     • specific
       • Third-party liability dogs and other pets (including horses and
         carriages).
       • Third-party liability building, TV and antennas.
       • Third-party liability hunting and use of firearms.
       • Third-party liability in the private organization by the insured of
         temporary activities, such as the organization of games, parades, shows, processions, festivities, balls, fancy-fairs, braderies, exhibitions, horse races, trips, competitions.

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• Third-party liability professional activities

  • Third-party liability of operation of commercial, industrial, agricultural enterprises or of craft enterprises.
  • Third-party liability after delivery (Third-party liability products) or after execution of works.
  • Third-party liability of administrations and public institutions.
  • Third-party liability of nuclear installations.
  • Third-party liability of persons or associations of persons (including their personnel) who provide intellectual services.
  • Ten-year Third-party liability of architects and contractors.
  • Third-party liability of buildings, antennas, signs for professional purposes.
  • Third-party liability of educational institutions.
  • Church fabric.
  • Organization - for profit - by the insured of temporary activities such as games, parades, ...

• Third-party liability of public establishments

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BRANCH 14 - CREDIT

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 sale - personal loans ;
   • mortgage credit ;
   • agricultural credit ;
   • consignment ;
   • leasing ;
   • factoring ;
   • credit life insurance.

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BRANCH 15 - SURETYSHIP

1. Hazards

   The involvement of the surety insurer (the beneficiary wishes to realize the suretyship).

2. Subject matter of the risk

   Any industrial, commercial, or financial enterprise that must deposit sureties in the framework of its activities.

3. Coverage

   Compensation regarding the hazard.

   Examples :

   • transport ;
   • customs triptych and/or repatriation costs and/or customs costs ;
   • travel agencies ;
   • rent ;
   • contractors ;
   • criminal law ;
   • wood.

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BRANCH 16 - ALL KINDS OF FINANCIAL LOSSES

(not included elsewhere)

1. Hazards

   Various hazards that interrupt, disturb, or cancel an ongoing or planned activity and cause financial losses.

   Examples :

   • bad weather ;
   • machine breakdown ;
   • fire ;
   • loss of pilot license.

2. Subject matter of the risk

   Financial losses: loss of profit, depreciation, exchange risk, ongoing high general costs, cancellation costs, ...

3. Coverage

   Various compensation modalities :

   • with compensation character ;
   • with lump-sum character ;
   • with mixed character (lump-sum and compensation).

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BRANCH 17 - LEGAL ASSISTANCE

1. Hazards

   Various facts that can lead to liabilities or disputes.

2. Subject matter of the risk

   The rights or interests of a person (legal person or natural person) or of a community of persons when they are involved in a dispute or can be as plaintiff or defendant.

3. Coverage

   Various forms of service provision or reimbursement of costs necessary for the defense of the insured's interests.

   By contract, coverage can be extended to reimbursement when the insureds are the victims of damage caused by an insolvent third party.

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BRANCH 18 - ASSISTANCE

1. Hazards

   Various events (accident, illness, death of insureds and their close family members, car breakdown, theft of the insureds' vehicles, fire, major damage to the insureds' homes ...).

2. Subject matter of the risk

   The smooth progress of a trip or stay.

3. Coverage

   Provision of various assistance services and reimbursement of certain costs.

   Examples :

   • assistance persons ;
   • assistance vehicles ;
   • assistance persons and vehicles.

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