CONTRACT ON INSURANCE FOR THE ACCOUNT OF THIRD PARTIES OR FOR WHOM IT MAY CONCERN

Contracting insurance for the account of a third party other than the Policyholder is an exception from the general rule that the contract is effective only between the contracting parties. Different lines of insurance have specific characteristics, making a contract for account of third parties very complex. Provisions of the Law on Contracts and Torts governing the insurance for the account of third parties or for whom it may concern are general, which causes a confusion because, according to their inherent clauses, they are more appropriate for the insurance of property than the civic legal liability and personal lines. The insurance for the account of third parties may be effected for both property and personal lines, because the general provisions need to be applicable to both insurance groups. In the Preliminary Draft of the Serbian civil code, the provisions of the Law on Contracts and Torts regulating insurance for the account of third parties have not been amended, which is not a satisfactory solution. This paper analyses the most important issues in this insurance line and points to the need to amend the provisions of the Law on Contracts and Torts pursuant to the special traits of the insurance for the account of third parties in property and personal lines.

Key words: insurance contract; the insured; beneficiary; property insurance; personal insurance: liability insurance; contract for the benefit of a third party.