Characteristics of Civil Liability Insurance In Iraqi and Iranian Law

Abstract

Abstract

This research examines the characteristics of liability insurance as a legal mechanism designed to regulate the financial obligations arising from civil liability towards third parties. It operates through transferring the burden of compensation from the insured to the insurance company, within the limits of the insurance policy and in consideration of a premium. This system constitutes a legal instrument that achieves a balance between protecting the injured party and ensuring the financial and legal stability of the insured.
The study begins by clarifying the fundamental concepts of insurance and civil liability. Liability insurance is defined as a contract under which the insurer undertakes to cover the financial obligations arising from the insured’s civil liability towards third parties. Civil liability, on the other hand, is based on a legal obligation to compensate damage resulting from a wrongful act or breach of a legal duty.
The research further addresses the historical development of liability insurance and civil liability within comparative legal systems. This development emerged as a result of economic and social progress and the increasing complexity of risks, which necessitated legal mechanisms to ensure fair and organized compensation for injured parties. In this context, the study highlights the development of liability insurance in Iraqi law, where it is regulated under the general provisions of civil law and insurance contract principles, influenced by modern approaches to liability and compensation. It also examines its development in Iranian law, which is based on a combination of statutory legislation and Imamiyya jurisprudence principles, particularly the rules of guarantee (ḍamān) and compensation for harm, giving it a dual legal character that combines Islamic jurisprudence with modern legal regulation.
The study concludes that liability insurance is characterized by fundamental legal features, most notably that it is a consensual, bilateral, aleatory, time-bound, and compensatory contract. In practice, it tends to resemble contracts of adhesion, as its terms are pre-determined by insurance companies without actual negotiation with the insured. It is also closely linked to the establishment of civil liability itself, making it an effective legal tool for achieving legal protection and economic balance.