Insurance against liability insurance is important for the policyholder, which has a policy for this type of insurance, as well as for the person who has suffered damage from the policyholder.
The importance, which the insurance against liability has for the policyholder, is that it provides security to the insured person.
The insurance company instead of the policyholder take on obligation to pay the injured party the amount of damage within the limits of the sum assured if the policyholder unintentionally and inadvertently causes damage to a third party.
On the other hand, insurance against liability, provides that a person who has suffered damage always may be fairly compensated.
Forasmuchas that the insurer take on obligation to himself, it avoids the chance that challenger of damage, due to poverty or other reasons, can not compensate for the damage.
Insurance against liability as an obligation, establish the following regulations of the Republic of Serbia:
Law on Compulsory Traffic Insurance
Insurance against liability in traffic is compulsory for the following persons:
- Owners of motor vehicles – third party liability insurance
- Aircraft owners – aircraft passenger and third-party liability insurance
- Boat owners – third party boat insurance (Article 2 paragraph 1 items 2., 3. and 4.).
Insurance against liability is compulsory for the founders of an insurance brokerage undertaking.
Along with the application for a license to carry on insurance brokerage activities the founders of an insurance brokerage undertaking shall submit professional liability insurance or unconditional bank guarantees accepted by the National Bank of Serbia for the insured sum and/or the guarantee amount not less than the RSD equivalent of EUR 200,000 calculated at the National Bank of Serbia middle exchange rate on the day of payment (Article 89, paragraph 3 item 9).
Law on Environmental Protection
For pollutants whose installment or activity represent high risk to human health and the environment, insurance against liability in case of damage caused to third parties due to accidents is the obligation (Article 106).
Law on Maritime Navigation
Approval for conducting mediation services in the employment of seafarers can be issued to a legal entity that has a valid insurance policy for professional liability insurance for financial losses incurred by the seafarer as a result of omissions in the work of mediators in the amount of 5,000.00 euros in dinar equivalent per harmful case (Article 67a, paragraph 1, item 5).
Before signing the employment contract, an intermediary in the employment of seafarers is obliged to check whether the shipping company has concluded insurance against liability in case of death or bodily injury of a seafarer on the amount that is determined by the applicable law and collective agreements, whether they have a system of ensuring of the repatriation of the seafarer and to inform the seafarer about it (Article 67e paragraph 6).
Law on Audit
Professional liability insurance of the auditor (Article 18).
Law on Bankruptcy
Professional liability insurance of the bankruptcy administrator (Article 25 paragraph 3 and Article 30).
Law on Advocacy
Professional liability insurance of lawyers (Article 37 paragraph 1 to 3).
The Law on Public Notary
Professional liability insurance of notaries public, which includes insurance against liability for the actions of public notary deputies, assistants, trainees and other persons who work with notary public (Article 59 paragraph 1, 2, 3 and 5).
Law on Enforcement and Security Interest
Before taking the oath a public executor must make the insurance contract for damage that their activities could cause to another person and the insurance contract for premises and things received in a deposit in case of their damage, destruction or disappearance (Article 478 item 1).
Law on Mediation in Real Estate Trade and Leasing
Professional liability insurance of mediators in real estate trade and leasing (Article 13).
Law on Planning and Construction
Compulsory insurance against liability for damages that their work may cause to the other contracting party or third party is obligation for entities (a company or other legal entity or entrepreneur), which are engaged in production of technical documentation, construction works, professional supervision or technical inspection (Article 129a).
Electronic signature law
Certification body for the issuance of qualified electronic certificates shall meet the ability to raise the funds required for insurance against such risks and liability for any damage caused by the provision of electronic certificate issuing services (Article 18 paragraph 1 item 8).
Rules on technical requirements for the design, manufacture and conformity assessment of simple pressure vessels
The notified conformity assessment body must enter into a contract of insurance against liability unless its liability is taken by the State in accordance with national law, or the State itself is directly responsible for controls (Annex III, item 6).
Rules on checks of pressure equipment during service life
Notified body for the classification of pressure equipment and notified body for inspection and testing of pressure equipment must have concluded the contract of insurance against liability for damage (Annex II Section 1 item 5 and Annex II, Section 2, item 7).
Rules on technical requirements for the design, manufacture and conformity assessment of pressure equipment
The notified conformity assessment body and notified body for the inseparable connections must enter into the contract of insurance against liability unless its liability is taken by the State in accordance with national law, or the State itself is directly responsible for the control (Annex IV, item 6). Control body of Users must enter into a contract of insurance against liability unless its liability is taken by the group which is part of (Annex V, item 6).