Compensation may take the form of cash payments or repairs or replacements, depending on the terms of the compensation contract. For example, with respect to household insurance, the owner pays insurance premiums to the insurance company in return for the assurance that the homeowner will be compensated if the home suffers damage from fires, natural disasters or other hazards specified in the insurance contract. In the unfortunate event that the house is severely damaged, the insurance company is required to restore the property to its original condition – either by repairs by licensed contractors or by reimbursement to the owner for expenses for such repairs. Depending on the wording of the clause, compensation may apply: but they are my friends; they would never sue me on the basis of the agreement! In 1825, Haiti was forced to pay France what was then called the « debt of independence. » The payments were used to cover losses suffered by French plantation owners after the loss of land and slaves. While this type of compensation has been incredibly unfair, it is an example of many historical cases that show how compensation has been applied without compensation worldwide. Before moving to a rented apartment, a landlord can ask the tenant to sign a compensation clause in the tenancy agreement. This would protect the landlord from loss or damage to the property. Compensation agreements can be useful for many reasons, but if they are not well understood, they can have serious consequences for the person who signed. Be sure to understand your compensation agreement before signing. 4. A compensation contract without an insurance certificate or supplementary insurance document, which is not only bound by the compensation contract, is worthless. In many cases, your insurance company can cover compensation; However, many guidelines require advance knowledge or, in some cases, must authorize compensation.
Sending a claim for damages to an insurance company on the basis of a contract you signed without the insurance company knowing in advance of the compensation contract is a simple way to deny the right or not renew the policy the next time it is renewed. Minor changes in the wording can have significant consequences. There are several types of compensation agreements: general compensation for training, damage to the intermediate forest, limited damage to training, comparison, tacit, etc. Car rental companies often signed a compensation contract before driving the car. This must be protected from complaints if the driver ends up in an accident with the rental car. 99% of the time, a compensation agreement is really strengthened on your insurance company and write a check. Insurance does so because a manufacturer manufactures a product with a defect, and the distributor is sued for the defect of the consumer who purchased the product. The liability issues are defined because the agreement stipulates that the trader must be sued or that there must be a liability or a claim.
Again, the complaint will be on behalf of the company with which you signed the compensation contract, and that company has no choice.