Cass. Civ., Ord. No. 10602/2018: Indemnity Principles in Sickness Disability Insurance

Judgment No. 10602 of 2018 by the Court of Cassation represents an important ruling on sickness disability insurance. The Court addressed fundamental issues concerning the application of the indemnity principle, clearly establishing that insurance policies for sickness disability must be subject to this principle, thereby limiting compensation to the actual loss suffered.

The Case and Legal Issues Raised

The case involved B.C., acting as the holder of parental authority over the minor A.B., who had appealed against Zurich Insurance for the payment of compensation related to a permanent disability policy. The Court of Appeal had initially dismissed the appeal, arguing that there was not a plurality of insurances with different insurers, but rather two policies relating to the same risk, both issued by the same company.

• The Court confirmed the applicability of Article 1910 of the Italian Civil Code, which governs damage insurance, and emphasized the importance of the indemnity principle.
• The central issue concerned whether the indemnity value could exceed the amount conventionally established in the policy.
• The Court clarified that the indemnity principle is a matter of public policy and cannot be waived by the parties, thus preventing undue enrichment of the insured.

The indemnity principle characterizes all damage insurance policies to ensure that the loss does not result in an economic advantage for the insured.

Conclusions of the Court of Cassation

The Court of Cassation rejected the appeal, stating that sickness disability insurance falls under the branch of damage insurance. This means that the indemnity cannot exceed the actual loss suffered by the insured, and the compensated amount must be predetermined by the policy itself.

In particular, the Court highlighted that:

• The definition of damage must be relevant to what is contractually established.
• The monetary value of the damage has already been predetermined in the policies and cannot be further increased.
• The indemnity principle applies indiscriminately to all types of insurance that provide for compensable damage.

Conclusion

Judgment No. 10602/2018 by the Court of Cassation represents an important clarification on the limits of compensation in sickness disability insurance policies. It reiterates the centrality of the indemnity principle, which is fundamental to preventing unjustified enrichment of the insured and ensuring the stability of the insurance system. It is essential for legal professionals and consumers to understand how these principles influence the methods of damage settlement in cases of disability.