The Nature and Basis of Liability Insurance in Law of Iran with Comparative Study in English Law

Despite increase in the use of liability insurances, the legal nature of such contracts is not clear. The justification of impact of this contract on the contracting parties and the injured third parties is only possible by understanding the nature of such contracts. Inapplicability of the general rules of contracts in liability policies such as the obligation of the insurer in paying compensation to the injured third parties even when the insured causes damage intentionally and other instances which cannot be justified relying on general rules, all indicate that the nature of these insurance contracts must be looked at on their own. Although, like England, in Iran we can speak of an obligation in favor of a third party and paying damage attributed to the insured, it seems that the nature of the contract is the compulsory liability, guarantee of the compensation for the injured by the rule of law and within the insurance contract.