The beneficiary is ... Who is the beneficiary?
The issues of property rights protection for property were significant for humanity in any historical epoch and under the most diverse socio-political formations. What is the most significant in these issues?
Some General Provisions
In the definition and regulation of property relations there are a number of fundamental concepts on which all the existing legislative base and legal system is based. One of the most significant terms is the concept of a beneficiary. This is a legal or physical person who is the bearer of property rights to a property and appropriately receives income from such ownership. Or profit from some kind of commercial operation. In legislative and legal practice, there are a number of nuances, one way or another related to this term. Let's try to consider some of them in more detail.
Who can be attributed to the beneficiaries?
Sometimes in domestic legal practice such international analogue of this term as "beneficiary" ("beneficiary") is used. In its meaning, it completely coincides with the concept of "beneficiary". This is nothing more than a synonym, historically ascending to Roman law. In Russian legal and economic practice, both terms are equally common. Who is usually referred to as beneficiaries? Most often, the beneficiary is a person who receives income in the form of rent from his property transferred to trust management or for use by other persons or organizations. Mutual relations with the beneficiary in this case, the users of his property occur on specially agreed terms.
This term is also widely used in insurance. In the sphere of insurance business, the beneficiary is a natural or legal person receiving payments under the contract in accordance with the conditions prescribed in the insurance policy. This term is also very common in inheritance law. Here the beneficiary is a person who receives certain property or financial rights according to the will or current hereditary legislation. In addition, it is also customary for beneficiaries to refer persons to whom banking structures provide various kinds of financial preferences.
The current legislation adequately elaborates the rights and obligations that the beneficiary has, irrespective of whether it is a legal entity or an individual. So, in particular, according to the current Civil Code of the Russian Federation, the beneficiary of a legal entity has the right to receive insurance payments in cases stipulated in the contract for insurance of its property, if it was damaged as a result of the occurrence of the insured event. The legal framework in the sphere of property relations and financial obligations has been elaborated at the present time in sufficient detail, the rights and obligations of both sides of the insurance contract are spelled out in it in an exhaustive manner. In addition to the Civil Code, insurance relations are governed by the Law of the Russian Federation of 27 November 1992 "On the Organization of Insurance in the Russian Federation."
Duties andbeneficiary's rights
The insurance of its tangible property and other property gives its owner confidence in obtaining financial compensation in the agreed amounts, if the property is damaged as a result of the impact of natural factors or any aggressive encroachments of a criminal nature on it. But the insured beneficiary in the manner prescribed by law also has a number of obligations to the insurer with whom he has entered into the relevant contract. The first of these is the timely payment in full of the contributions agreed in the contract, or as they are often called "insurance premiums."
Additional responsibilities of the beneficiary
In addition to compulsory payment of insurance premiums, the insurer-beneficiary has to the insurer a number of obligations, as they say, "second order". But from this they do not become less important. Execution of the contract in the event of an insured event without meeting these obligations is not possible. First of all, they should be attributed to the provision to the insurer of the entire documentary base on the insurance object in full. Timely informing about all the changes that have occurred and any circumstances that are relevant to the case. And most importantly, the insurer must necessarily be informed of the occurrence of the insured event within the terms stipulated in the insurance contract. Of course, the beneficiary is obliged to fulfill this clause in the situation if he intends to exercise his right to receive financial compensation due to him as a result of the occurrence of the insured event.
What makes an insurer pay?
In the event of an insured event, the insurer is obliged to fulfill, in accordance with the terms of the contract concluded by it, all the financial obligations incurred to the owner of the affected property. Payments in certain cases can be more than significant. It is not uncommon for an insurer to resort to external financial loans on terms that are burdensome for him to fulfill his insurance obligations. What makes him do it? The point here is that insurance is, as they say - "long game" and "long distance running." And only those who can build a strategy for the development of their business in the long-term perspective can win here. The insurer, which is steadily fulfilling its financial obligations, acquires a reputation. And consequently, the client base, whose insurance contributions will necessarily cut off for a certain period of time all expenses incurred by him to fulfill his financial obligations.
Some reflections of a general nature
The history of insurance business has been several centuries. Appearing for the first time in the UK in the period of the emergence of industrial capitalism and the rapid development of world trade, this sphere has been steadily growing and improving up to the present day. What is the attraction for all those who are beneficiaries of the conclusion of insurance contracts for their tangible property and other assets? After all, according to the concluded agreement, the beneficiaries have to assume rather significant financial obligations. The point here, perhaps, is that owners of property need a sense of confidence in the achieved material results. They are motivated by a desire for stability and confidence in the future. And the beneficiaries are ready to pay for it. It is this circumstance that makes them turn to insurers. No one else can sell them the necessary sense of confidence and stability. In this transaction, both sides are equally interested. It should be noted that successful development of insurance business is possible only in a state with a steadily developing economy and with a stable legal system.