đ Background :
In this case, an insured woman had taken out comprehensive motor insurance for her vehicle. In 2020, her son, designated as the driver, reported an accident in Geneva. However, an investigation revealed that the actual driver was NOT the son, as initially claimed, but a friend of the latter, who was driving without a license and had fled after damaging three parked vehicles… This detail – crucial! -deliberately concealed in the initial declaration, revealed a pattern of fraud designed to conceal the true circumstances of the accident.
âïž Key legal arguments :
1ïžâŁ Liability of the insured:
The defendants attempted to exonerate the insured by asserting that she had not participated in the reporting of the loss. However, as the policyholder, the insured was still subject to the obligation of good faith in the reporting of claims.
2ïžâŁ Misrepresentation and bad faith:
It was proven that the insured’s son had knowingly concealed the ACTUAL facts to cover up for his friend, who was driving without a license at the time of the accident. These false declarations were aimed at obtaining compensation for a claim NOT COVERED by the policy. As a result, the insurer demanded restitution of the sums paid to manage the claim: âŹ235 in expert fees and âŹ22,633 in compensation to the third-party victims of the accident.
â ïž Decision :
The court ruled that the insurance lapse clause was unenforceable, as the general and special conditions had not been signed by the insured. However, due to the misrepresentation, the court applied the exception of inexecution, condemning the insured and her son. Under article 1104 of the French Civil Code, contracts must be negotiated, formed and performed in good faith. In this case, the misrepresentation was intended to mislead the insurer and obtain illegitimate compensation.
This extremely well-reasoned decision recalls that “the insurance contract remains subject to the principles of common law applicable to any contract and, consequently, the obligation to perform a contract in good faith is also imposed on insureds” and “that it is [ensuite] up to the judge to decide, according to the circumstances, whether the non-performance by one of the parties of its obligations is sufficiently serious to release the other party from its own.”
đ TJUD THONON-LES-BAINS, 30/09/2024, RG n°21/02302
