The Foundation of Insurer's Liability for Vehicle Accidents in Iran and England

The jurists believe that the reparation of vehicle accident damages by insurer is based on contract. They analyze the insurer’s liability on this foundation. But this approach faces some difficulties and contradictions. In our opinion, at least compulsory liability insurance is not founded on contract, but on loss distribution. The contract is only an instrument for collecting the necessary capital for reparation. Resolving problems on this basis becomes easy, and it would make it convenient to understand the law and facilitates its implementation. This liability may be better organized under the term of “Collective Civil Liability System”. This idea avoids irresolvable difficulties. This paper tries to explain the two foundations and set forth their effects on important problems, and to compare its outcome with English Law, and then report the result.