New vehicles should be insured, and in the case of second-hand vehicles, they may be less performing in all respects than new vehicles, and therefore more so. So, can a used car be insured beyond its transfer price after a traffic accident? The following is your answer。
First, the principle of compensation for loss is analysed. As a basic principle of property insurance, it means that in the event of an insurance accident causing the insured person a loss, the insurance company must compensate the insured person, within the scope of its insurance liability, for the loss suffered in order to restore the insured person to his or her pre-loss economic situation。
1. Definition of loss and its scope. (a) losses in civil law are the total amount of property of the subject of the right, resulting from the existence of a certain fact, less in real time; in other words, the difference between a pre-incident benefit and a post-incident benefit is a loss. Losses in insurance law refer to non-interests in property arising from insurance benefits. In the case of commercial motor vehicle insurance, such insurance benefits are expressed in the financial interest of the insured person in the insured vehicle. Thus, in the event of an insurance accident, the scope of the loss would primarily include the actual impairment of the economic benefits of the insured vehicle at the time of the insurance accident, as well as other reasonable expenses paid by the insured person。
The measure of loss. The actual loss for which coverage is provided is based on the actual cash value at the time of the loss. The term “real cash value” is generally considered to be the replacement cost less the depreciated balance. Depreciation is used for the correct determination of the amount of loss due to one reason or another, usually the depreciation of the subject matter of the insurance itself due to its use, obsolescence and degradation prior to the occurrence of the insurance accident. This method of calculation is also consistent with the common sense of the general public in society. The vehicle, which is the subject of the insurance, is consumer goods and is subject to depreciation during use, the actual value is subject to a reduction period from the time of purchase and the value remains derogatory throughout the insurance period. Thus, in calculating the actual cash value of the insured vehicle, the value of the insurance is determined by using the purchase price of the new vehicle at the time the insured vehicle was insured, less depreciation, which can more objectively reflect the actual value of the vehicle and is comparable to the actual loss suffered by the insured person。
3. Actual value trading prices. The profits of our second-hand car trading are considerable, and once driven by huge profits, the course of dealings is gruesome, mainly in the assessment of trade prices. Inappropriate assessments often manifest themselves as price disproportionate, i. E. Contrary to real value. In addition, there are some second-hand car trades, such as transfers between relatives and friends, which are not carried out on the open market. The transaction price is more affected by a variety of subjective factors, sometimes even free of charge. It is unacceptable for the insurance company to equate the actual value at this time with the transaction price and to assume that the insured person does not suffer any loss, and to refuse to pay the insured person for the additional benefit that would result from the insured person。
Second, it proceeds from the principle of reciprocity of rights and obligations. Under the current method of calculation of premiums, the determination of insurance rates would not be affected in the case of the same vehicle where the transfer did not result in a significant increase in the level of risk. Thus, in the case of identical premiums, if the vehicle suffered total loss, the original owner could be compensated on the basis of the actual value of the contract, subject to the principles of compensation for loss, based on the insurance company's logical reasoning. After a transaction, when the actual value calculated is higher than the transfer price, the new owner can be compensated only at the transfer price, resulting in an unfairness of the same obligations and different rights of the owner。
Finally, the principle of party autonomy is examined. The insurance clause expressly provided for the method of calculating the value of the insurance, i. E. The average monthly depreciation method in accounting, to which the parties agreed. Because of the special nature of the insurance industry, insurance clauses are designed on a scientific actuarial basis, the concept of insurance contracts has a special meaning, different from our usual understanding, and insurance is also a legal act whereby both parties bind their respective acts and realize their respective rights by means of insurance contracts, so that the insurance clauses are legally binding on both parties. Since the parties have chosen to determine the amount of the insurance against the purchase price of the new vehicle and have included the purchase price of the new vehicle in the policy, in the event of an insurance accident, the actual value of the insured vehicle should be calculated according to the purchase price of the new vehicle agreed in the insurance contract, without leaving it to the parties to choose the outcome in their favour, thereby violating autonomy and, secondly, the principle of good faith。
