Increase of collective insurance premiums upheld

ATA/554/1995Court of Justice / Administrative ChamberOct 17, 1995Dismissed

Extracted by Omnilex

Omnilex summary

The decision concerns an increase in premiums under a collective insurance contract. The court held the increase admissible because the contract itself allowed premium adjustments and the collective arrangement was running at a deficit. The challenge was therefore rejected.

Omnilex headnote

LAMA 6 bis; increase of premiums under a collective insurance contract: an adjustment is permissible where it rests on a contractual basis and is objectively justified by the deficit situation of the collective contract. The insured party cannot successfully oppose the increase when the contractual mechanism for premium revision is validly invoked and the economic conditions underlying the collective scheme warrant the adjustment.

Full text

Descripteurs

ASSURANCE SOCIALE; AM; PRIME D'ASSURANCE; AUGMENTATION(EN GENERAL); ASSU

Normes

LAMA.6 bis

Résumé

Augmentation des primes d'un contrat collectif admise, la possibilité d'augmentater les primes reposant sur une base contractuelle et étant justifiée par le fait que le contrat collectif en question était déficitaire.

Keywords

social insuranceinsurance premiumcollective insurancepremium increasecontractual basisdeficit

Extracted by Omnilex

Key legal questions extracted by Omnilex

Key legal question

Whether the increase of premiums under the collective insurance contract was admissible.

Extracted holding

The increase was admissible because the contract provided a contractual basis for adjusting premiums and the collective contract was operating at a deficit.

Extracted reasoning

The court accepted that the insurer could raise premiums under the contractual terms, and that the deficit of the collective contract justified the adjustment.

Increase of collective insurance premiums upheldAI generated