Example 1

A week ago, I damaged the insured vehicle when I came out of a parking lot and hit a traffic sign that was on my right. I received information from the insurer’s contact centre that I was obliged to report the occurrence of the insured event to the insurer within three days of the date on which the harmful event occurred, in reference to the clause on loss of rights from the insurance policy, as determined in the contract. Have I really lost any rights from the insurance contract, i.e. the right to insurance, by missing the three-day deadline?

The clause on loss of rights in insurance contracts, according to which the insured loses rights from the insurance contract if they do not report the occurrence of the insured event to the insurer within three days, is in direct contradiction to the provision of Art. 941 of the Obligatory Relations Act. Namely, the article prescribes that the insured is obliged to inform the insurer of the occurrence of an insured event within three days. If they do not fulfil this obligation within the prescribed time, they are obliged to compensate the insurer for the damages they would have suffered (for example, damages due to failure to take timely measures to reduce damages, resulting in increased damages, reduced effect of relief measures, etc.). Therefore, the insurer cannot be relieved of the obligation to pay the insurance by invoking the insured's failure to notify them of the occurrence of the damage. The Supreme Court of the Republic of Croatia has repeatedly ruled in favour of such a position, and lower courts follow that ruling.

Example 2

Our company regularly takes out a collective accident insurance policy for workers, given that workers are potentially exposed to injuries at work while performing their work-related daily activities. Does a collective accident insurance policy provide sufficient protection to an employer?

An employee accident insurance policy (due to death due to accident / permanent disability due to accident / death due to illness / serious illness) only protects the interests of employees but not the potential liability of the employer for their own employees’ death, or injury to their health or body, where the sources of the risk are possession of certain substance, a specific legal relationship, or a certain property as a source of danger. Therefore, it is necessary for the employer to consider the option of taking out an employers’ liability insurance policy, which covers any employer liability for damages to an employee’s property caused by destruction or damage and by death, injury to an employee’s health or body, where the sources of the risk are possession of property, legal relationship or a certain property as a source of danger. As a rule, a policy is signed in accordance with the assessment of the maximum possible damage under the relevant insurance policy and the standard insurance amounts signed by companies of a similar profile. The premium depends on the number of employees in the company.