Insurance contract as a contract of adhesion or accession
Insurance contract as a contract of adhesion or accession this means that the terms of this contract are drawn up only by one party, the insurer, in the form of proof of insurance, for all types of insurance contracts and any object being insured. In contrast, the other party, the guaranteed, usually has only the right to sign this contract.
The fact that the insurance contract is an ad hoc contract also results from the content of Article 1114 of this Code, which provides for the form of this contract and which states, among other things, that the insurance contract is drawn up by proof of insurance that the insurer issues to the insured.
It is clear from this provision that this contract is an ad hoc or adherence contract because the only correct way to compile it is to prove insurance that the insurer issues to the insured.
Consequently, the question arises. Is the will of the party who does not participate in the drafting of the contract conditions violated?
In this regard, the authors are divided into two groups. Some authors argue that in adhesion contracts, the autonomy of the will of the party that does not participate in the drafting of the contract terms is limited, as this party does not exercise its choice in drafting the contract terms but is obliged or not to accept the terms outlined by the other party.
The second group of authors, on the contrary, admit that we do not infringe on these contracts the autonomy of the will of the party which does not participate in the drafting of the terms of the deal, as, indeed, this party does not exercise choice in the writing of the terms of the contract. Still, it has the right to add, remove, or change some of the agreement’s terms and, if it does not agree with them, not to conclude the deal.
I think that in ad-thesis contracts, we do not infringe on the autonomy of the will of the party which does not draft the terms of the deal, as this party demonstrates its will, whether or not it decides to enter into this contract, even with the right that this party has to add other elements of the contract or to change the previously drafted details, it is understood as any other contract in agreement with the other party. I think that one of the reasons for the provision of this contract is the protection of the weaker party that in this case is the insured party, as not always that party has specialized professional legal knowledge towards the insurer, which is still a legal person, equipped with legal expertise and consequently a more privileged position.
Also, do not allow autonomy to be violated; we must be in free competition conditions rather than monopoly. The fact is that in Albania, there is currently a large number of private and public insurers. The lawmaker has foreseen this contract as an adhesion contract; I think there is a need to create regularity and uniformity in the local circulation. By standardizing this contract, their frequency in the regional flow between the entities subject to this service and the protection of the insured party’s legal rights, which is weaker than the insured party, is realized in this contract.
Significance of term in the insurance contract.
The insurance contract is, in all cases, a strictly fixed term contract. This characteristic results from the content of Article 1115 of the Civil Code, according to which the insurance proof must contain the beginning and the end of the insurance contract. The term depends on the facility provided, for example: for agricultural products the time is not less than one month, for the buildings of citizens the end is 1-5 years and more. In the civil-legal sense, the term is when the legal consequences of the contract begin or end.
In the insurance contract, the term is of crucial importance, and the lack of determination of the condition of starting and ending of the deal makes the contract invalid. The most common disease of an insurance contract is one year. However, this term may be more or less than one year; the insurance contract can be concluded at any time of the calendar year.
When the contract is for a period longer than ten years, the parties have the right to waive this period’s expiration if they notify each other six months before expiry.
This contract may be tacitly renewed several times, but any renewal shall not exceed two years (Article 1124, the third paragraph of the Civil Code). The arrangement of life and health insurance cannot be renewed (Article 1124, fourth paragraph). The Civil Code in force does not provide a maximum term that the parties must comply with to conclude this contract, so the parties are free to terminate an insurance contract providing for a full time they wish.