What Is Proprietary Insurance

Proprietary insurance is a type of insurance policy connected with ownership, operation, disposal of any type of property except state which was leased.

Such type of insurance is performed voluntary, except cases of the proprietary insurance which is in state-owned property.

As owners of such type of insurance any citizens and businessmen of various property form can be.

According to the insurance contract the property can be insured fully or partially. It is possible to specify both the real cost and certain share. However, the amount can’t exceed real cost at the time of such agreement type conclusion. At that, the actual value is a balance sheet or recovery amount.

Subsequently any of the parties can’t challenge this amount, except cases when the insurer was intentionally misled.

Contracts on proprietary insurance can be signed, both for a certain term and uncertain period with annual recalculation of its cost and insurance payment.

The conclusion of multiple insurance is possible. This means the conclusion of a contract with several companies on insurance of the same property.

At that, there are some rules. The first is that the insurer is obliged to inform other insurers about such action at once after the conclusion of such agreement.

The second: in case of loss occurrence, each of insurers pays not a full amount, but only its part in the proportions which corresponds the amount of insurance premiums received from the insurer within double insurance procedure.

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