The comparison of insurance between them.

The comparison of insurance between them.

Personal insurance is subject to the flat-rate principle, that is to say that in the event of damage, the insurer can offer "compensation" disconnected from the amount of the damage. This is not the case with non-life insurance which respects the indemnity principle, ie, in the event of damage, the insurer cannot offer compensation greater than the amount of the damage.

The aim of the indemnity principle is to prevent the enrichment of the insured. The insured may have taken out several insurance policies, this is overinsurance. But even in this case, he will not be able to accumulate the indemnities. On the other hand, in the event of refusal of guarantee by one of the companies or of partial compensation by one of the companies, he may request full compensation from another company in which he has taken out an insurance contract.

The indemnity principle allows the subrogation of the insurer. In short, once the insurer has compensated his insured, he can turn against the insurer of the "offender" to seek compensation for the funds sent to the insured. It is said that the insurer is subrogated in the rights of the insured, since he recovers the faculty of legal action of his insured against the author of his damage. This subrogation in insurance of persons is not possible for insurance which has a lump-sum character, but remains possible for personal insurance which has a compensatory nature (invalidity benefits or daily sickness benefits by the law of 1994 n ° 94-678), and confirmed in case law [1].

This distinction between flat-rate insurance and indemnity insurance should be put into perspective with other types of classifications such as the classification between life insurance and non-life insurance, since life insurance is non-savings insurance. based on damage.

This distinction between fixed-rate insurance and indemnity insurance must also be seen in the light of another distinction between damage insurance (based on the principle of compensation) and personal insurance (which is mainly based on the compensation principle). flat rate).

However, some insurances, such as health insurance, operate with fixed and indemnity guarantees.

Finally, remember that with regard to life insurance for historical assets, this distinction between flat-rate insurance and indemnity insurance can play a preponderant role if insurers decide to continue to implement contingency guarantees in life insurance. Insured persons who will be compensated either according to the indemnity principle or according to the lump sum principle, for their risk of disability, health, etc.

If insurers also decide to innovate by implementing service guarantees and why not guarantees linked to the cancellation of acts, then indemnity guarantees and flat-rate guarantees will be included in a life insurance which initially did not include either one. , neither of these guarantees.

Home insurance contracts are multi-risk contracts which cover both damage caused to others (third party liability) and damage to their assets (damage). A look back at these two insurance policies combined in a single, very popular contract.

Damage insurance covers both damage to things and the liability of the owner or manager.

- Property insurance covers "patrimonial assets". Example a dwelling.

Property insurance is based on the principle of repairing the value of the item at the time of the loss. This is the indemnity principle laid down in Article L121-1 of the Insurance Code. The insured must not be able to enrich himself with his compensation. But the parties can agree on conventional arrangements when signing the contract. This is why the pre-contractual phase is the most important phase in insurance law. The arrangements are of two kinds, deductibles and maximum guarantees. There are therefore three concepts which coexist:
- The value of the item on the day of purchase (1),
- The value of the item at the time of the loss (2),
The value of the insured item which will give entitlement to compensation (3).

- Liability insurance covers a "liability debt". Example, the obligation to compensate for damage caused to others.

    "The characteristic of civil liability is to restore as exactly as possible the balance destroyed by the damage and to put the victim back in the situation where he would have been, if the damaging act had not occurred" [2] .

Liability coverage will only be effective in the event that a claim or legal action is made against the insured.

Liability can be civil when it concerns a private person.