What is Act No. 189 / 1950 Coll.?

Act No. 189 / 1950 Coll., on Insurance Contract — Insurance Act.

When it became Act No. 189 / 1950 Coll. effectiveness?

Act No. 189 / 1950 Coll. became effective 01.07.1951.

Is Act No. 189 / 1950 Coll. still valid?

Yes, Act No. 189 / 1950 Coll. is still valid and effective.

Act No. 189 / 1950 Coll. - Insurance Act

189.

Law

of 21 December 1950

on the insurance contract.

The National Assembly of the Czechoslovak Republic decided on the following Act:

Část I.

Common provisions.

§ 1.

(1) The insurance provides for the provision of funds to cover property needs arising from random events.

(2) The relationship between the members of the insurance relationship is regulated so that insurance primarily protects the socialist economy and the working people from losses and promotes their efforts to secure and develop production and to raise the standard of living, but does not lead to enrichment and is not abused to the detriment of socialist society.

Insurance contract.

§ 2.

The insurance contract obliges the insurance undertaking for remuneration (insurance)

(a) in the case of property insurance, to make good the damage within the limits of the contract;

(b) in the case of the insurance of persons, to pay by contract the amounts determined, if the event in the contract (insurance event) occurs for the duration of the insurance.

§ 3.

(1) Within 15 days of the receipt of the application for the conclusion of an insurance contract, the insurance undertaking shall accept it or request its addition or make a new proposal or notify the applicant that it does not accept its application. If the insurance undertaking does not do so within that period, the application for the conclusion of the insurance contract shall be valid for the first day following its expiry.

(2) The period referred to in the preceding paragraph shall begin to run again from the date of receipt of the supplementary application.

(3) The provisions of the preceding paragraphs do not apply if the appellant has set a shorter deadline for the binding of his proposal.

§ 4.

The insurance contract is valid - with the exception of the provisions of Paragraph 3 (1) - for the closed date on which acceptance of the application was served on the other party.

§ 5.

(1) A written form is required for the validity of the insurance contract.

(2) The insurance undertaking shall issue to the other party (s) the insurance contract document (s).

(3) Exemptions from the provisions of the preceding paragraphs may be provided for by the Ministry of Finance, in particular under insurance conditions (Section 7).

§ 6.

(1) The policyholder may withdraw from the contract unless there is an opportunity for the person for whose life, health or property the insurance has been agreed, at the time the insurance is to begin, to have an insurance accident (an insurance risk). Withdrawal from the contract has effects as if the contract had not been concluded. If the insurance risk ceases after the insurance starts, the policyholder may terminate the legal relationship based on the insurance contract (insurance ratio) with immediate effect.

(2) If insurance applies for the period before the conclusion of the insurance contract, the contract shall be void if, at the time of conclusion of the insurance contract, only one party knew that the insurance event had already occurred or had not yet occurred.

§ 7.

Insurance terms.

(1) The content of the insurance contract includes the provisions of the insurance terms. The insurance conditions for each type of insurance shall be issued by the Ministry of Finance and declared on the relevant official list. The Ministry of Finance may also change the insurance conditions, if the general interest so requires, with effect from the applicable insurance conditions and unsatisfied claims.

(2) Derogations from the provisions of the insurance conditions can only be negotiated if the insurance conditions allow it or if the Ministry of Finance agrees to do so. However, supplementary arrangements and arrangements may be included in the insurance contract without which the specific nature of the insurance risk would not have resulted in the conclusion of the insurance contract. Other arrangements which are contrary to the insurance conditions are invalid.

§ 8.

Interim insurance.

(1) When negotiating an insurance contract, the parties may agree that the insurance undertaking shall provide the performance if the insurance event is set before the conclusion of the insurance contract (interim insurance). Unless otherwise agreed, interim insurance shall be valid under insurance conditions. Provisional insurance shall also be provided for remuneration.

(2) The Ministry of Finance may determine in which cases and to what extent interim insurance will be incurred, even if it has not been agreed.

(3) Provisional insurance shall cease to exist by the conclusion of an insurance contract or, if a party has been withdrawn, or if one of the parties has notified that it has not concluded the insurance contract; at the latest, the provisional insurance shall expire six months after the date on which it was incurred.

§ 9.

The beginning and end of insurance.

The insurance shall begin at noon on the day on which the insurance contract began and end on the last day of the insurance relationship at noon, after the date of the loss of the insurance risk. It can be agreed that insurance starts or ends at a different time than noon.

§ 10.

Termination and extension of the premium ratio.

(1) The insurance ratio may be terminated by either party at least six weeks in advance at the end of the insurance period (Section 11 (1)).

(2) If the insurance relationship is not agreed for a specific period but at least for one year, it shall be cancelled not later than six weeks in advance at the end of the contractual period, it shall be extended, unless otherwise agreed, by one year each.

(3) In life insurance, only the policyholder can terminate the insurance ratio, starting with the second insurance period at any time. Paragraph 2 shall not apply to life insurance.

§ 11.

Insurance.

(1) The premium is set either for the whole life of the insurance (single insurance) or for the insurance period. The insurance period is one year, unless otherwise agreed.

(2) Where the insurance ratio is extinguished before the end of the insurance period or where a single insurance premium has been set before the end of the contractual period, the insurance undertaking shall be insured until the last day of the month in which it became aware of the loss of the insurance premium. Exceptions may provide for insurance conditions.

(3) If the insurance ratio is extinguished before the end of the insurance period, or if a single insurance period has been set, before the end of the contractual period because of the occurrence of the accident, the insurance undertaking is insured before the end of the insurance period, after the end of the contractual period.

§ 12.

Maturity of insurance premiums.

If not otherwise agreed, the only or first premium due within a week after the conclusion of the insurance contract shall be the subsequent premium on the first working day of the insurance period.

§ 13.

Exhalation.

(1) If a single insurance or first insurance premium is not paid within one week of the last due date, the insurance undertaking is not required to comply.

(2) In the absence of payment on the due date of the subsequent insurance premium, the insurance undertaking shall be entitled to encourage the policyholder to pay, while at the same time informing him of the legal consequences of the further delay in payment and giving him an additional period of at least one month. If insurance is not paid even within this period, the insurance undertaking shall be free to fulfil the obligation and may terminate the insurance relationship with immediate effect.

(3) If the insurance is not paid in the next three months calculated from the last day of the time limits referred to in the preceding paragraphs and the insurance undertaking does not apply at that time to the insurance claim in court, or if the arbitration panel is responsible for deciding, the insurance relationship shall cease.

(4) However, the insurance undertaking is obliged to comply if the insurance has been paid before the loss of the insurance relationship and before the event occurred, or if it has applied to the court (arbitration commission) the claim for the period during which the insurance event occurred.

(5) The Convention of the Parties may extend the periods referred to in paragraphs 1, 2 and 3. Derogations from the provisions of the preceding paragraphs may be agreed for insurance with socialist legal persons.

§ 14.

Insurance against change of insurance risk.

(1) However, if, for the duration of the insurance relationship, there is a change in the insurance risk that affects the level of the premium, any party - the insurance undertaking - may propose an appropriate adjustment to the insurance contract within one month of the date on which the change in the insurance risk occurs. If no agreement is reached within three months of the date of receipt of the application, the insurance ratio shall cease.

(2) The provisions of the preceding paragraph shall apply mutatis mutandis if, for the duration of the insurance relationship, it is established that the insurance risk was already different from that which was calculated when the insurance contract was concluded when the content was determined.

(3) If the insurance event is not earlier than 15 days after the application for the adjustment of the insurance contract has been received, but before an agreement is reached, the insurance undertaking shall comply with the ratio in which it corresponds to the changed insurance risk of the insurance premium.

§ 15.

Payment of insurance premiums by a third party.

The insurance undertaking is obliged, even if the policy holder has not agreed to do so, to receive any premiums due or other payments which the policy holder is obliged to pay in connection with the insurance contract, also

(a) a person different from the policyholder who is entitled to the insurance contract;

(b) from the cash institutions which have a claim on the policyholder.

Obligations of the applicant (policy holder).

§ 16.

The applicant shall notify the insurance undertaking of any circumstances relevant for the conclusion of the insurance contract or for the determination of the content of the contract to which he was asked when the insurance contract was negotiated. The policyholder shall notify the insurance undertaking without delay of any changes in such circumstances. If the insurance contract was concluded, although the applicant did not reply to the question of the insurance undertaking, this does not affect the obligation of the insurance undertaking to comply.

§ 17.

(1) The policyholder shall not infringe contractual arrangements aimed at reducing or preventing the risk of insurance, nor shall he suffer similar acts of third parties. He is obliged to allow the insurance company to look at the security equipment. This provision shall not apply to life insurance.

(2) The policyholder shall notify the insurance undertaking without delay and, where there is suspicion of a criminal offence, the security authorities shall also make every effort to mitigate its consequences, give all the explanations necessary to establish the circumstances applicable to the performance of the insurance undertaking and allow the investigations required to do so.

(3) Furthermore, the policyholder is obliged to submit to the insurance undertaking the documents strictly necessary to demonstrate the claims for the performance of the insurance undertaking; other documents shall be submitted only at the request of the insurance undertaking and on its cost.

§ 18.

Consequences of a breach of duty.

(1) If the policyholder (applicant) has infringed the obligations imposed on him by this law or agreed in an insurance contract, or if it has acted against the security regulations and has the effect of affecting the level of the premiums, the insurance undertaking's obligation to comply with the ratio of the insurance premiums agreed upon to the insurance undertaking shall be reduced.

(2) If the breach of obligations has had a significant impact on the occurrence of an insurance event or the extent of its consequences, its findings or the determination of the amount of the insurance undertaking's performance, the insurance undertaking's obligation to comply with the insurance undertaking's liability is either reduced or not incurred.

(3) The provisions of the preceding paragraphs do not apply if the insurance undertaking is informed of the facts which the policyholder (applicant) was obliged to notify to it in time before the insurance event and if the consequences are not revealed without undue delay.

(4) In the insurance of liability and in the insurance of persons, the insurance undertaking may not claim an exemption or reduction in the obligation to comply if the policy holder has infringed the obligations imposed on him in order to avert or reduce the risk of insurance or to avoid its increase but has not done so intentionally.

§ 19.

The importance of third party action and knowledge.

(1) Where, under the provisions of this law, the conduct and knowledge of the policyholder (s) are of legal importance, the conduct and knowledge of the person authorised by the insurance contract or of the person whose life, health or property has been contracted (insured) shall also be taken into account when determining the breach of the obligations of the policy holder (s). In the same way, account shall be taken of the conduct and knowledge of the person who, on behalf of the policy holder (s), has negotiated the insurance contract or who manages the insured property in the place of the policy holder (s).

(2) If knowledge of any circumstances is relevant at the time of the conclusion of the insurance contract, the knowledge of another person shall not be taken into account if the contract was concluded without its knowledge.

Insurance business.

§ 20.

(1) The insurance undertaking shall be required to comply within a month of receipt of the notification that an insurance event has occurred. If, within this period, the insurance undertaking cannot complete the investigation necessary to determine the insurance event or person authorised by the contract or to determine the amount of the insurance undertaking's performance, the insurance undertaking shall be obliged to complete the investigation within 15 days of the end of the investigation.

(2) If the investigation is not completed within a month of the date on which the insurance undertaking received notification that an insurance event had occurred, it shall, at the request of the person whose right of performance has been established, provide an advance which, according to the state of the case, will at least be paid. The period during which an investigation cannot be carried out on behalf of the policyholder shall not be counted within a month.

(3) The insurance conditions may provide for time limits derogating from those laid down in the preceding paragraphs.

§ 21.

If a person other than the policy holder is entitled to the performance of an insurance undertaking, the insurance undertaking may only reduce its outstanding premiums and other claims from the insurance contract from which it is performing.

§ 22.

If the insurance undertaking refuses to comply, the entitlement to the benefit shall cease if it has not been brought before the court (arbitration commission) within six months of the receipt of the letter in which the insurance undertaking notified the policy holder, following the case of another beneficiary, of the refusal of performance, and has brought them to their attention.

§ 23.

Replacement policy.

The insurance undertaking shall, at its request and on its cost, issue a replacement insurance policy to the policy holder for the damaged or lost insurance. However, it may request that the insurance be first amortised if it is only to be filled in for submission.

§ 24.

Copies of proposals and notifications.

(1) The insurance undertaking is required to issue to the policy holder and the person entitled to the insurance contract, at their request and on their cost, copies of all their proposals and notifications relating to the insurance relationship.

(2) Where such copies are necessary for legal acts resulting from an insurance relationship which are bound by a period of time, and if the policy holder or the person entitled to the insurance contract has not previously been issued by the insurance undertaking, the period of time from the application to the delivery of the copies shall not be counted.

§ 25.

A form of speech.

Written forms shall be required for proposals, notifications and claims required under this Act or under an insurance contract. The Ministry of Finance may provide for exceptions.

§ 26.

The beginning of expression.

The speeches referred to in § 25 are against the other party since delivery. If they could not be served for the circumstances which this party had caused, they have been operating since the time in which they would have been delivered had the circumstances not been present.

§ 27.

The period of postal transport is not included in the time limits set out in this Act.

Část II.

Property insurance.

Amount of insurance claims.

§ 28.

In the case of insurance of assets, the insurance undertaking is obliged to make up for the maximum actual damage caused by the insurance event. The Ministry of Finance can determine when the purchase price and what has gone well.

§ 29.

(1) Also, if several insurance contracts for the same assets were concluded, for the same time and the same danger, the maximum actual damage, or the purchase price, and what had been lost by the insurance event, would have been met.

(2) Once the policy holder or insurance undertaking has known that several such contracts have been concluded, they shall be required to propose an adjustment to the insurance in order to avoid overcompensation under the preceding paragraph. The adjustment shall be made from the beginning of the month in which the proposal is made.

(3) The difference between the insurance premiums paid and the insurance premiums that the insurance undertaking would have been entitled to in the proper adjustment of the insurance, shall be returned by the insurance undertaking no later than three years before the adjustment of the insurance.

§ 30.

The obligations of the policy holder.

The policyholder is obliged to do everything possible to ensure that the insurance event does not occur. If an insurance event has occurred, it may not, without the permission of the insurance undertaking, change the condition of the insurance event caused until the damage has been investigated; This is not the case, however, if such a change is necessary in the interests of the general, or if the damage is mitigated, or if, in the course of the investigation, the damage is caused by the insurance undertaking for unnecessary delays.

§ 31.

(1) The policyholder may conclude an insurance contract with an insurance undertaking for the property of a third party.

(2) The claim for performance under the insurance contract belongs to the insured person, but all rights arising from the insurance relationship with the insurance undertaking are exercised by the policyholder, in particular he is entitled to accept the performance for the insured. However, the insurance undertaking shall be entitled and, at the request of the insured, obliged to make the performance to the policyholder dependent on the permission of the insured.

(3) The policyholder shall have the right to satisfy himself of the performance of the insurance undertaking for the claims he has against the insured person in connection with the insured property. If the insured person is entitled to compensation for damage caused by an insurance event, he shall be credited with the performance of the insurance undertaking from the insurance contract to that claim.

§ 32.

Rescue and investigation costs.

(1) The costs incurred by the policyholder or the insured to avert or reduce the damage when an insurance event (rescue costs) occurs shall be borne by the insurance undertaking, even if the result has not occurred, if the policyholder (insured) may have considered it necessary and proportionate to the value of the matter as appropriate.

(2) If the insurance undertaking does not pay for all the damage caused by the insurance event due to the promotion of insurance (Paragraph 36), it will cover the rescue costs only in the proportion in which it replaces the damage.

(3) The insurance undertaking shall always be obliged to reimburse the full costs incurred on its instructions.

(4) The costs of the insurance accident investigation and the damage incurred by the insurance undertaking (cost of inquiry) are borne by the insurance undertaking, unless they have been caused by incorrect information from the policy holder (insured).

§ 33.

Transfer of claims against a third party to an insurance undertaking.

(1) The claims of the policyholder or insured for damages caused by an insurance event against a third party shall be transferred to the insurance undertaking if he has compensated for the damage.

(2) If the insurance undertaking has replaced only part of the damage, the policy holder or the insured person shall take precedence over the insurance undertaking in order to satisfy his claim on the property of the person responsible for the damage.

(3) The insurance undertaking shall not transfer claims by the policy holder or insured against persons living with him in the common household or who are dependent on him for their maintenance unless they have caused harm intentionally.

(4) If the policyholder or the insured person renounces his claim for compensation to a third party or his right to compensation, this shall be ineffective to the insurance undertaking.

§ 34.

Insurance amount.

The insurance undertaking shall be obliged to pay a maximum amount by contract (insurance amount), unless otherwise specified.

§ 35.

Overinsurance.

If the insurance amount exceeds the value of the insured item determined for the determination of the insurance refund (insurance value), either party may propose that it be reduced for appropriate adjustments to the premiums. The adjustment shall be made from the beginning of the month in which the proposal is made. Paragraph 29 (3) shall apply mutatis mutandis.

§ 36.

Support.

(1) If the insurance amount determined on the basis of the value of the insured item at the time of the insurance event is lower than the insurance value, the insurance undertaking shall pay the damage in proportion to the amount of the insured item.

(2) It can be agreed that the premium will be granted up to the amount of the premium amount without taking into account the ratio of the premium amount to the premium value when determining it.

§ 37.

Insurance of a set of things.

If a set of items is insured, the insurance covers all the items that are currently belonging to the file.

§ 38.

Change of owner of insured goods and operator of the business.

(1) If the ownership of the insured item has been overtaken or the ownership of the insured set of movable items has been completed, the new owner shall enter into the law and obligations of the former owner resulting from the insurance relationship.

(2) If ownership of the policyholder's affairs is exceeded, the insurance relationship shall cease, with the exception referred to in the preceding paragraph, once the insured thing has come out of his hands.

(3) If there is a change in the person of the business operator, the new operator shall enter into the law and obligations of the former operator from the business liability insurance.

(4) The new owner, after the case of the new operator of the undertaking, has the right to terminate the insurance contract at the end of the insurance period without maintaining the six-week period laid down in Section 10.

The lien.

§ 39.

(1) A socialist legal person who has a lien on the insured case also has a lien on the claim for insurance compensation against the insurance undertaking, if an insurance event is made. This lien also guarantees the amounts paid by the lien creditor under Paragraph 15 and the interest on them.

(2) If the lien creditor declares his right to the insurance undertaking before paying the compensation, the insurance undertaking may only pay it to the policyholder with the consent of the lien creditor. However, there is no need to accept whether, under the real estate insurance contract and its accessories, compensation is to be used for the rebuilding or repair of real estate or to supplement its facilities and ensure that the money is used for those purposes.

(3) If the lien creditor does not object within one month of receipt of the insurance undertaking's notification that the compensation will be paid to the policyholder, he shall agree to this. In its notification to the lien creditor, the insurance undertaking must draw attention to this effect. Paragraph 26 applies mutatis mutandis.

(4) If the lien creditor cannot be informed or if he disagrees in good time, the insurance undertaking may order compensation before the district court of residence of the policyholder.

(5) The combined compensation shall be laid down by the court using, mutatis mutandis, the provisions on the distribution of the substance in the execution auction of immovable property, in which the policyholder is regarded as a debtor.

(6) If the financial institution has notified the insurance undertaking of the lien on the insured case, the insurance undertaking shall immediately inform it of its cargo that the insurance was not paid in due time.

§ 40.

(1) Any person who is entitled to compensation for damage caused by an insurance event shall have a lien on the claim for reimbursement of liability insurance.

(2) The insurance undertaking is entitled, if notified in advance to the policy holder, to pay compensation for liability insurance to a third party if the policy holder is obliged to make good the damage caused by the insurance event.

Část III.

Insurance of persons.

§ 41.

Insured and sophisticated.

(1) The policyholder may insure himself or another person.

(2) The insurance may be contracted for the benefit of the policy holder or third party.

(3) If another person is insured, the policy holder cannot be sophisticated. The insured person's consent is needed to determine the occupied. If the holder or the bearer of the policy has not been so designed or has been designated as such, he shall pay for the insured, in the case of his heirs.

(4) If the insured person is entitled to compensation for damage caused by an insurance accident, the policyholder may request that the performance of the insurance undertaking under the insurance contract be counted against the insured person's claim.

Acquisition and treatment of the claim.

§ 42.

(1

(2) If nothing else has been agreed, the policy holder may, until the occurrence of the insurance event, treat the claim of the insurance contract. Until this time, it can also change the person who is occupied, if not about pension insurance. If another person is insured, he can only do so with his consent.

§ 43.

If the claim is not acquired, the insured person, in the case of his heirs, or the policyholder, or his heirs, shall obtain it in the case of the insured person. This provision shall not apply to pension insurance.

§ 44.

(1) If a number of persons are identified as having been intended without the determination of their shares, they shall be entitled to an equal share in the performance of the insurance undertaking. The share of which some of the people who have been chosen have grown to others.

(2) If heirs are identified as affections without more precise information, heirs shall be entitled to the benefits of the insurance undertakings according to the ratio of their inheritance shares.

(3) If insurance for the death of the policyholder has been agreed for the benefit of the policyholder or the policybearer, the insurance amount shall be for the heirs of the policyholder unless another valid measure has been taken by the policyholder.

Intentionally causing an accident.

§ 45.

(1) An insurance undertaking is free from an obligation to comply if the policyholder is capable of an accident of intent, unless this is the case in the event of a necessary defence, rescue or general interest.

(2) If the insurance event was intentionally accepted by a third party for whose benefit the insurance was agreed, it shall be deemed not to have been designated.

§ 46.

If the insured person committed suicide, the insurance undertaking is obliged to perform life insurance if the insurance relationship is continuous for the last two years prior to suicide. However, the Ministry of Finance may determine when and to what extent the insurance undertaking is required to comply if the premium ratio is shorter.

§ 47.

Reductions, buyout and renewal.

The insurance conditions for life insurance shall specify in which cases and under which conditions the policyholder is entitled to the conversion of insurance into insurance free of premiums with reduced insurance amount (reduction) or to the cancellation of the insurance ratio and redemption of the redemption or renewal of the original insurance contract.

Citation	Act No. 189 / 1950 Coll., on Insurance Contract
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	28.12.1950
Effective from	01.07.1951
Effective until	-
Status	Valid

Act No. 189 / 1950 Coll.

Insurance Act

Contents