Legal Regime of the Property of Insurens in the Transportation Industry

Abstract

The article aims to identify and describe the specific features of the legal regulations regarding property owned by insurers in the transportation industry. It also suggests methods for enhancing insurers’ capitalization and reinforcing the property aspect of their management.
The author outlines the unique aspects of the legal rules governing insurers’ property in the transport sector, including: regulation of relations in the field of transport insurance mainly by the provisions of the Commercial Code of Ukraine and the Law of Ukraine «On Insurance»; conducting business based on titles of ownership and economic management, as well as derivative contractual regimes of property use; legal capacity of the insurer; efficient use of property with prompt alienation of property which is not used in the insurer’s activities; effective property management by the head of the insurer or their subordinates; clear definition of the directions of use of the insurer’s profit (income); engaging in property relations with the state and other participants in economic relations; ensuring legal protection of property by the insurer’s legal units. The article supports V. S. Shcherbyna’s suggestion to reintroduce Article 138 «The Right to Operational Use of Property» to the Commercial Code of Ukraine and to add a new Article 138-1. This legal arrangement applies to dozens and hundreds of branches and representative offices of almost every insurer in Ukraine.
To find and suggest ways to boost insurers’ capitalization and enhance their property management, the author suggests expanding legislative incentives for creating insurance companies in the transportation sector. This expansion would cover insurance from different sources based on origin, affiliation, and ownership structure. The research emphasizes the benefits of state bodies and economic entities participating as founders or shareholders of insurers, either holding a controlling stake or a «golden share». The existing state insurance company and its representative offices and branches should play a significant role in the transportation insurance market. Economic entities’ activities in this market should be based on public-private partnerships, both within insurers formed from various sources and in the relationships between state-owned insurers and non-state carriers.