CASUALTY INSURANCE Insurance covering loss or liability arising from accident or mishap, excluding certain types of loss which

by law or custom are considered as falling exclusively within the scope of other types of insurance such as fire or marine. (Sec. 174, Insurance Code) It includes, but not limited to:  Employer s Liability Insurance-insurance against liability for damages caused to workmen arising from injuries by reason of defective condition of machinery, etc.  Workmen s compensation insurance-Compensation for loss resulting from injuries, disablement or death of workmen thru industrial accident, casualty or disease  Public liability insurance- Indemnifies against liability or account of injuries to the person or property or another  Motor vehicle liability insurance- Insurance against passenger and third party liability for death or bodily injuries or damages to property arising from motor vehicle accidents  Plate Glass Insurance-against loss from accidental breaking of plate glass windows, etc.  Burglary and theft insurance-Insurance to cover loss of property thru burglary, robbery or theft  Personal accident and health insurance (written by non life insurance companies) Indemnifying the insured against expense, loss of time and suffering from accidents causing him physical injury. Health insurance indemnifies the insured for expenses and loss occasioned by disease  Accident insurance reimburses the insured for pecuniary loss suffered as a result of injuries sustained in an accident  Health insurance reimburses the insured for the pecuniary loss arising out of disease related illness.  Burden of proof: Insured s beneficiary has the burden of proof in demonstrating that the cause of death is due to the covered peril. Once the fact is established, the burden then shifts to the insurer to show any expected peril that may have been stipulated by the parties.  Accident/ Accidental- that which happens by chance or fortuitously without intention or design, and which is unexpected, unusual or unseen y Event happening without human agency = ACCIDENT y Deliberate act + unexpected, unforeseen happening = ACCIDENT  Incidental- implies the exercise of reasoning faculties, consciousness or volition

TWO GENERAL DIVISION OF CASUALTY INSURANCE Insurance against perils which I. May affect person and/or property of the insured II. May give rise to liability on the part of the insured for the claims for injuries to others or for damage to their property. Liability Insurance is a contract of indemnity for the benefit of the insured and those in privity with him or those to whom the law upon the grounds of public policy extends the indemnity against liability DIFFERENCE Insurable interest I. Indemnity against actual loss- sections 10 and 14 of insurance code which provides the insurable interest in life and property are applicable here. II. Indemnity against liability- interest of the insured has in the safety of persons who may maintain or in the freedom from damages of property which may become the basis of suits against him in case of injury or destruction. When payable I. Against actual loss- action against the insurer does not lie until an actual loss is sustained by the insured II. Against liability- liability of the insurer attaches when the liability of the insured to the injured third party attaches, regardless of actual loss at that time. Right of the injured person I. indemnity against actual loss or payment- third person cannot proceed against the insurer, the contract being solely to reimburse the insured for liability actually discharged by him through payment to third person II. Indemnity against third party liability- third person to whom the person is liable, can sue directly the insurer upon the occurrence of the injury or event upon which the liability depends. Basis and extent of indemnity Both are based on the contract and the insurer is liable only up to the extent of the insurance policy. Prepared by: Jille Audrey Ola LLB 2-2