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you are here: > Civil Code
> Article 225
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7. Obligation
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| 7.4 Standards of financial products | ||
| Article 225-Property Insurance | ||
| 225.1 | Property Insurance | |
| A contract of property insurance is a contract relating to buildings, contents, transport vehicles or any other property whereby the insurer undertakes, for a premium or assessment, to make a payment to the client or a third person if an event relating to property covered by the insurance occurs. | ||
| 225.2 | Standards of structure and information | |
| The standard structure of property insurance contracts shall be as follows: | ||
| (i) All the key and pertinent information that is unique to the contracts is provided in form design including signature and approval at the front; | ||
| (ii) Any modified clauses, new clauses (including new technical word definitions), list of deleted clauses and/or other special considerations that are different from the standard form of general contract immediately after the summary of key information; | ||
| (iii) The standard clauses (including definitions) of the primary form as the last attachment with any deleted clauses crossed out using a clear "x" through the body of the clause . | ||
| This structure shall allow the easiest method of contract interpretation, validation that it complies to the primary form and conversion to an electronic record. | ||
| 225.3 | General application of property insurance | |
| The following are the general application and requirements of property insurance: | ||
| (i) All persons who have a home loan, property loan or lease require property insurance for the item(s) related in the contract, in case of fire and/or accident; | ||
| 225.4 | Mandatory disclosure of policyholder | |
| Where property is of value, policyholders must provide in electronic form (at their own expense) clear evidence of both ownership as well as any serial numbers, certifications as well as digital image of the property. | ||
| 225.5 | Mandatory coverage requirements of property | |
| Property insurance must in is structure be universal in its validity in the event of natural, human created and unforseen events causing the damage/destruction of property. | ||
| That a particular location for property is more prone to damage than others should be reflected in the higher premium rates for such a location compared to a low risk area. | ||
| However, under no circumstances is an insurance provider permitted to craft policies in such a way that certain exclusions deny the effect of the policy in the event of a particular disaster. Such "act of God" clauses are both unlawful and immoral and not permitted under any circumstances. | ||
| 225.6 | Prompt claims processing | |
| Tha maximum permitted delay in claims payment is 60 days. Thereafter any delay in claims payment for a legitimate claim, even if subject to significant investigation shall result in a civil offence by the insurer with justifiable financial penalties and remedies open to the claimant. No court injunction, nor appeal shall allow such penalties for slow claims processing to be further delayed. | ||
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