auto insurance

The Concept Of Auto Insurance

The Concept Of Auto Insurance

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The development of vehicle civil liability in Europe. Emergence and development of car insurance, including vehicle civil liability insurance, has been closely associated with the discovery of the car and the growth of their usage. So it‘s not surprising that the vehicle civil liability insurance emerged in the first few years after the car was launched to produce in the series. In Germany it was in the beginning of last century. Despite the insurance activity stagnation during the First World War, and afterwards the economic crisis, car insurance has developed rapidly and its importance in respect to other types of insurance increased noticeably.

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Gradually there has been also accumulated a sufficient statistical data base, allowing a correct assessment of individual risks and identification of possibly just insurance premiums rates. The rapidly increasing number of cars conditioned the adoption of laws regulating vehicular rules of the road in many European countries. In the first years of the twentieth century almost all European countries have had their own laws, established on the model of England and France.

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Mostly it was general laws, providing procedures for car registration and number issue, speed and other restrictions. Though vehicle civil liability was permitted by law, a number of drivers were not financially able to compensate the victims for the health or property damage.

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Once again this problem was attempted to solve on many ways. For example, in 1912 Norway introduced a law, which has provided that a permission to operate a vehicle could be issued for the owner only leaving a deposit of 20,000 kronor in the traffic service. Thus, it was guaranteed a compensatory payment for road accident victims in case of car owner’s fault. In 1914 Switzerland adopted a law, providing the compulsory vehicle civil liability insurance for minimum legal seen size amount.

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Compulsory vehicle civil liability insurance did not came at once, and had evolved slowly and in different European countries at different speeds. In the beginning it was compulsory mostly for public transport. The deposit had been considered as a reliable guarantee of compensation for damage not only in Norway, but also in England and the Czech Republic. First countries that legalized compulsory vehicle civil liability insurance were Finland, Norway, Denmark and Sweden.

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