Party Liability Insurance Research Articles

A Study of the Deficit of the Third Party Liability Compulsory Insurance of Motor Vehicle

With the rapid development of the popularization of motor vehicles and legal system construction, our daily lives become more convenient. But traffic accidents also have brought pain and heavy economic burden to the public. As the first compulsory insurance in China, the third party liability insurance aims at protect the injured in traffic accident sufficiently. In the recent years, however, the loss of the third party liability compulsory insurance of motor vehicle has aroused the concern of the whole society. Combining with our actual situation, this paper studies this insurance system in order to help to find out the deep causes of losses. Making a profit instead of suffering a loss has an important impact on the health of the insurance companies and the financial industry. Compared to the commercial insurance, the third party liability insurance of motor vehicle needs more improvement. According to the existing data and the foreign insurance operation experience, the paper analyzes the third party liability compulsory insurance of motor vehicle practicality through the comparative analysis. There are three parts to the causal analysis of the operating loss: insurance fraud, premium rate evaluation mechanism and the business model. At last, the paper gives some reasonable suggestions to make the compulsory motor vehicle liability insurance act better.

Essay on Wavelet analysis and the European term structure of interest rates

Analyses of trends on the third party liability insurance market have indicated in the recent years that the quantity and value of claims have been growing on all markets . The examination of reasons therefor reveals multiple factors, including also a change of social attitudes - a greater inclination of injured parties to assert claims and higher expectations as to the quality (extent) of compensation. This inclination results from social and economic factors. This paper describes current trends in this field on the Polish market in the context of experiences of other countries. It identifies the determinants of changes of attitudes of persons who assert claims and illustrates such attitudes with results of questionnaire surveys.

Limit of coverage in the motor liability insurance

Motor liability insurance provides the protection for persons sustaining damages as well as motor vehicle owners. Due to its characteristics and problems that insureds may have in the course of claim indemnification, the motor liability insurance is compulsory. The motor liability insurance is equally significant both domestically and internationally which affects various types of connecting, affiliating and harmonizing. Harmonization and standardization of certain elements of the motor third party liability insurance is provided for trough the European Union and Council of Bureaux with the membership of almost all European countries and the amount of minimum limits of coverage is one of the most important. The minimum limit of coverage for the motor liability insurance is one of the lowest in the European countries for a long period of time. In order to prevent the negative impact and to provide the quality protection of a very large number of insurance product users in line with the European standards, which have been fulfilled by almost all member states of the green card system it is proposed to amend the Law of compuslory motor liability, in order to implement as soon as possible the limits prescribed in 2009. The second phase following the detailed comparative analysis would be to prescribe the unlimited coverage, excluding the act of terrorism. The bonus-malus system should be amended due to the number of inconsistencies, leading then to fairer price for motor liability insurance policies depending on one's own contribution to risk occurrence.

Obowiązkowe zawodowe ubezpieczenia odpowiedzialności cywilnej

For several years obligatory third party liability insurance are getting more and more popular in Poland. Polish legislator obliged many professional groups to have such insurance. Author want to answer the question: if this situation is a necessity or an example of incorrect legislator’s activity? This article presents short history of third party liability insurance, philosophical basis of the regulation and shifts in the conception of civil liability caused by insurance. Author refers also to an influence which deregulation of access to regulated professions exert on obligatory third party liability insurance.

Development of Motor Third Party Liability Insurance Market in Terms of Changing Regulation

Motor third party liability (MTPL) is one of the most important lines of insurance business, in developed and in developing countries, as well. The legal framework in the European Union's Member States is determined with five Directives for motor insurance. Countries aspiring to join the European Union (EU) need to harmonise their national legislation in accordance with the requirements of these directives. The topic of this paper is to present an analysis of motor third party liability insurance market in terms of changing regulation. The main emphasis is directed towards the implementation of the Directives from the EU in the legislation of the Republic of Macedonia, regarding the question of the pricing for this class of insurance. There will be an analysis of the advantages and disadvantages as a result of turning from a state-regulated system to a liberal tariff regime for MTPL.

Romanian Compulsory Motor Third Party Liability Insurance In 2010 And The Predictable Future

Insurance coverage is mandatory for the motor's owners. Analyzing the condition of the insurance market trough 2010, by the gross written insurance premiums and the losses compensations in the same period, the study analyzes the Romanian bonus-malus system, by comparing it with the bonus-malus system of other states. The study reveals the impact of bonus- malus clause, and also the impact of the economic and financial crisis upon insurance market, the insufficiencies of the MTPL system and the ways of improving it. In the last part of this study, we analyze the future changes that the insurance companies have to make in according with the elimination of the discrimination trough gender in this insurance field.

Quasi-Likelihood Estimation of Benchmark Rates for Excess of Loss Reinsurance Programs

AbstractIn this paper a method for determining benchmark rates for the excess of loss reinsurance of a Motor Third Party Liability insurance portfolio will be developed based on observed market rates. The benchmark rates are expressed as a percentage of the expected premium income that is available to cover the whole risk of the portfolio. The rates are assumed to be based on a compound process with a heavy tailed severity, such as Burr or Pareto distributions. In the absence of claim data these assumptions propagate the theoretical benchmark rate component of the regression model.Given the whole set of excess of loss reinsurance rates in a given market, the unknown parameters are estimated within the framework of quasi-likelihood estimation. This framework makes it possible to select a theoretical benchmark rate model and to choose a parsimonious submodel for describing the observed market rates over a 4-years observation period. This method is applied to the Belgian Motor Third Party Liability excess of loss rates observed during the years 2001 till 2004.

Using a Bayesian Hierarchical Model for Fitting Automobile Claim Frequency Data

In this article, we consider Bayesian statistical models in which prior distribution of the risk parameter is to be specified in a hierarchical fashion. The model obtained is shown to be over-dispersed and competitive with other models in the literature for fitting automobile claim frequency data. We obtain analytical forms of the distribution, which presents excellent properties. The methodology is illustrated by practical examples in setting automobile third party liability insurance, with which its sensitivity to the structure function is tested.

Duration dependence models for claim counts

The aim of the paper is to introduce new claim count distributions constructed from different waiting time assumptions, such as the Exponential, Gamma and Weibull distributions. These models are then fitted to panel data with Gamma distributed random effects. The random effects allow for serial dependence and take residual heterogeneity into account. Predictive distributions are obtained with the help of Markov Chain Monte Carlo simulations. The approach is illustrated on the basis of a Belgian motor third party liability insurance portfolio observed for three years.

Insurance Coverage for Third Party Liability and Material Damage Arising From Nuclear Incidents Caused by Terrorist Acts

The OECD Nuclear Law Committee first began looking at the impact of terrorist acts upon the nuclear liability insurance market in November 2001, shortly after the attacks which took place in the United States on 11 September of that same year. The Committee was concerned about the impact which terrorist acts might have on the ability of nuclear operators to obtain third party liability and material damage insurance coverage for nuclear incidents resulting from such acts.

Nearest-neighbour methods for reserving with respect to individual losses

This paper focuses on the problem of predicting individual future late claims within a heterogeneous portfolio. For this purpose, thek-nearest-neighbour method is analysed, which intends to carry forward a considered loss according tok appropriately weighted similar observed claims experiences. Using a nonparametric regression approach, a normal approximation and asymptotic confidence intervals for the expected future indemnities are derived. The application of a backtesting procedure to third party liability insurance data reveals that thek-nearest-neighbour estimator performs better than the Chain-Ladder method.

Korea's space development programme: Policy and law

Abstract Korea now has a rapidly expanding space programme with exploration aspirations. The government is giving priority to the aerospace industry and, to put it on a better footing, recently enacted a New Space Exploitation Promotion Act. The early history and current and future development of Korea's space activities are briefly described in advance of a comprehensive presentation of the contents of the Act, including launch licensing, liability, registration of space objects, use of satellite information, astronaut rescue, third party liability insurance and establishment of institutions and plans to assist the Korean space effort. A call is made for Asian countries to unite and further their space development through a regional space agency.

THE LEGISLATION APPROACH OF THE THIRD PARTY LIABILITY INSURANCE FOR CONSTRUCTION DESIGNERS AND CONTRACTORS

Compulsory Third Party Liability Insurance is ranked as one of the most risky kinds of insurance. In the course of introducing the compulsory Third Party Liability Insurance for construction designers and contractors in Lithuania the experience of foreign countries was used for setting the insurance object, the criteria for the insured events and the third party rights for insisting on liability (restitution) for damages. The article analyses the provisions of law of construction and by‐laws regulating compulsory Third Party Liability Insurance for construction designers and contractors as well as the object of the compulsory Third Party Liability Insurance and differences between the compulsory and voluntary Third Party Liability Insurance for construction designers and contractors have been outlined. The evidence and conditions of the insured events within the Third Party Liability Insurance are reviewed and the insured event has been distinguished from a number of other events.

Un système de compensation plus équitable pour les personnes handicapées

Québec provides more than 300 assistance programs or measures to disabled persons, whether in the form of cash allowances or services. These programs, which were established over nearly half a century, provide unequal protection and access to assistance measures. Based on an exhaustive evaluation of existing programs, their origin and their actual effectiveness, the authors suggest that a more equitable compensation system be established for disabled persons. This new system requires that current assistance programs be simplified and merged, in particular as regards cash allowances. By carefully distinguishing between the principle of third party liability insurance and that of social solidarity, the authors put forward proposals which reduce the current irritants while respecting the state’s capacity to pay.

Automobile Insurance in British Columbia: Autoplan Turns Thirty

This article describes the five components of “Autoplan” insurance. This is the commercial name given to the universal automobile insurance regime that has been available in British Columbia since March of 1974. The minimum package comes with the following coverage: (1) third party liability insurance; (2) statutory accident benefits; (3) uninsured motorist protection; (4) underinsured motorist protection; and (5) inverse liability insurance. In closing, the article describes the main restrictions placed on recovery that relate to the conduct of the insured person.

Regulation of insurance services in the Czech Republic

The Insurance Act was passed in the Czech Republic in 1991. It provided for the establishment of new insurance companies and competition between them. The Ministry of Finance was authorised to supervise insurance activities. Amendments to the Act in 1993 covered the formation and financial placement of technical provisions and made changes to insurance company accounting rules. The second important transitional step was taken in 1999 with the passage of the new Insurance Act and a motor third party liability insurance Act with the aim of harmonising Czech insurance law with the EU legal framework. This harmonisation process should be finished by the end of 2002.

Accounting for Individual Over-Dispersion in a Bonus-Malus Automobile Insurance System

AbstractIndividual automobile insurance claims are characterized by over-dispersion relative to the Poisson model. In addition, claim propensities vary among individuals in any insurance portfolio. This paper presents a model which takes account of both characteristics. The model employs the negative-binomial distribution as the distribution for individual-level claims and a Pareto distribution as the distribution for claim propensities within the portfolio. The paper shows that the resulting model is tractable and has a number of attractive properties which make it suitable for this application. The fit of the model to actual claim numbers for automobile third party liability insurance is examined and found acceptable. Bayes theorem is then applied to this model to calculate illustrative optimal premiums under the Bonus-Malus System (BMS).

The Phenomenon of Whiplash and the Compulsory Third Party Liability Insurance: An Interim Report from the Netherlands

The increasing degree in which neck injuries are being suffered as a result of traffic accidents gives Dutch motor insurers rather a lot of worry (and head sores). Not only is number of neck injuries (hereafter nonetheless to be referred to as on increase; also amounts involved constitute a considerable part (approximated at 35%) of total financial burden of motor personal injury claims. In other countries whiplash is also a for insurers; in Europe that is especially case in Scandinavia and Germany. Remarkable, however, is that in these countries whiplash is more of a quantity problem (a lot of smaller claims), whereas in Netherlands it is a quantum problem. After all, in Netherlands we regularly come across sizeable claims, sometimes based on 100% permanent disability; that Dutch situation differs from in surrounding countries could very well be helped along by contemporary views on legal position of victim. Because, in whiplash cases we are generally dealing with medically (hardly) nonobjectifiable injuries (often with only subjective complaints such as neck pains, headaches, difficulties with concentration, irritability and sleeping problems; see also diagram regarding a possible classification Table 2, chapter 5, and reasoning from dictum the onus of proof rests with claimant, this could put victim in a difficult position to prove his case. In practice this is not actual, however, especially in view of broad interpretation of concept of causation. It is therefore often liable party (i.e. his third party liability insurer) who has to prove contrary. In this article various aspects of whiplash phenomenon will be discussed. In chapter 2 some figures and other statistical material will be described; both from Netherlands and from abroad. In chapter 3, three questions will be reviewed from a Dutch

Reinsurance of Third Party Motor Insurance and Motor Insurance in Finland

The need and extent of reinsurance of third party motor insurance depends fundamentally on the risk limits prescribed in the legislation of the country in question (and on the other hand the legal limits of the compulsory insurance may have been fixed with regard to the reasonable possibilities of the insurers getting reinsurance). There are two kinds of risk limits which are applied in different countries: total limits and individual limits. The former defines the maximum joint indemnity for an accident, paid to all claiments together, and the latter defines the maximum indemnity paid to each claiment separately. From the social point of view limits of this sort are not expedient, especially in regard to physical injuries. Owing to this total limit the indemnity for a single claiment can depend on the number of other claiments, which is quite inadequate from the point of view of the actual need to get insurance cover for injuries. The individual lump sum limit allows full compensation for slight injuries but can cut down the compensation for serious ones, which is an irrational method of settling an indemnity system. Owing to these risk limits motor car drivers may also be held responsible for the extra claims personally on the basis of civil (or criminal) law, which compels them to take an extra third party liability insurance (which often also has risk limits).