The Supreme Court on assignment of credit and the deadline for reporting a claim: Order no. 24210 of 2019

In order no. 24210 of September 30, 2019, the Supreme Court of Cassation ruled on an important issue concerning the assignment of credit and the timeliness of reporting a claim in the insurance sector. This case, which involved Carrozzeria Mille Miglia Srl and Società Italiana Assicurazioni, offers significant insights into understanding the legal dynamics governing the insurance industry.

The context of the case

Carrozzeria Mille Miglia Srl, assignee of a credit arising from a claim covered by an insurance policy, had requested compensation for repairs carried out on a car damaged by hail. However, the Court of Turin had rejected the claim, arguing that the claim had been reported beyond the three-day period stipulated by the regulations.

In the context of damage insurance, non-compliance with the obligation to report a claim does not, in itself, imply the loss of insurance coverage.

The legal issues at stake

The Court examined two fundamental aspects:

• The nature of the insured's breach: wilful or negligent?
• The burden of proof in case of late reporting of the claim.

In particular, Article 1915 of the Italian Civil Code establishes that in case of wilful breach, the insured loses the right to indemnity, while in case of negligence, the right to indemnity is reduced proportionally to the prejudice suffered by the insurer. The Court reiterated that the burden of proving the wilful nature of the breach lies with the insurer, who must demonstrate not only the lateness of the report but also the fraudulent intent of the insured.

The Court's conclusions

The Supreme Court upheld the first ground of appeal by Carrozzeria Mille Miglia, holding that the Court of Turin had not adequately assessed whether the breach had been wilful or negligent. The Court therefore quashed the contested judgment and referred the case back to the Court of Turin for a re-examination of the issue in light of the legal principles set forth.

Conclusions

This order from the Supreme Court clarifies important aspects concerning the assignment of credit and responsibilities in the insurance sector. It highlights the need for careful assessment of the nature of the breach and the correct fulfillment of the burden of proof, fundamental principles for ensuring fair application of insurance regulations. Companies and professionals in the sector must pay particular attention to these aspects to avoid disputes and ensure compliance with legal provisions.