Compulsory insurance refers to a legal requirement for individuals or entities to obtain and maintain specific types of insurance coverage.
This requirement is typically imposed by government authorities to protect the public interest and mitigate potential risks or damages associated with certain activities or situations. The purpose of compulsory insurance is to ensure that individuals or entities have adequate financial resources to cover potential liabilities or losses that may arise from their actions.
Failure to comply with compulsory insurance requirements may result in penalties or legal consequences.
Yes, in many jurisdictions, certain types of insurance, such as auto insurance, workers’ compensation insurance, and professional liability insurance, are required by law.
Failure to have compulsory insurance can result in fines, licence suspensions, or other legal penalties.
In some cases, individuals or businesses may be exempt from compulsory insurance requirements if they can demonstrate financial responsibility in another way, such as through a bond or self-insurance.
Common types of compulsory insurance include auto insurance, workers’ compensation insurance, and professional liability insurance.
Yes, compulsory insurance typically has minimum coverage requirements that must be met in order to comply with the law.
Compulsory insurance may be available from a variety of insurance providers, but it’s important to ensure that the policy meets the specific legal requirements of the jurisdiction.
Yes, if you are legally required to have compulsory insurance and do not have it, you may be subject to legal action, including being sued for damages.
In some cases, businesses may risk losing their licence or facing other penalties for not having the required compulsory insurance.
If you believe that you have been unfairly required to have compulsory insurance or have been penalised for not having it, you may have the right to appeal the decision through the appropriate legal channels.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 27th April 2024.
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