1. Insurance Event
The insurance event is the liability of the insurer for damages caused to the property of any third party arising from the use of a vehicle during an insurance period.
2. Compensation Limits
- The insurer will pay on behalf of the insured all sums which the insured will have to pay due to the insurance event, up to the limitation of liability, specified on the list for property damages of third parties.
- The insurer shall also bear reasonable legal expenses that the insured must bear due to the insurance event, even if such amounts exceed the insurance amount.
- Notwithstanding the aforesaid, if the insurance event is maliciously caused willfully, the insurer will be exempt from its liability.
3. Third Party Claims Handling
- The insurer may assume or manage in the name of the insured the defense or settlement of any claim and to compromise in the name of the insured in any suit; the insurer will have absolute discretion in managing all legal proceedings or settlement of any claim. The Insured will provide to the insurer, at his request, the assistance necessary for the insurer for this purpose.
- In the case of a claim or claims against the insured arising from one insurance event or a series of events that could be either attributable to one source or one reason, and covered under this chapter of the policy, the insurer may pay the insured the full insurance amount under this chapter, and after such payment, the insurer would be exempt from the management of the suit or stated claims and no additional liability will apply to the insurer in connection therewith, except for legal expenses determined by court, namely, reasonable expenses incurred in connection with these claims.
4. Exceptions for Liability to Third Parties for Property Loss
The Insurer shall not be liable for any payment due to damages to property owned by the insured or the driver of the vehicle, or to property which is under the supervision or bailment of the insured or the driver of the vehicle or one of their family members.