Contractual Limits to Free Disposal of Indemnity in Damage Insurance

Extract

[...] The scope of Article L121-17 1(disposition of public order, therefore no contractual derogation, general application to all damage insurance according to a cassation court ruling of 18 April 20192. The repair of the damage or work (Article L 242- for this reason also the indemnities received from the insurer must be allocated to the realization of the constructions3. The contractual limits to the principle of free disposal of the indemnity in damage insurance The contractual clauses in case of damage to the property (the contractual limitation of indemnity clause. [...]

[...] Insurance Law Applied Is the free disposal of the indemnity still the principle in insurance of damages? (This question may be a problem) Is the principle of free disposal of the indemnity in insurance of damages still absolute? (Answer: the free disposal of the indemnity is always a principle but its scope is limited on a double measure. The absolutism of the principle of free disposal of the indemnity in insurance of damages The content of the principle of free disposal of the indemnity The autonomy of the insured (the insured must have control over the indemnity according to their priority, for example, choosing service providers Responsibility of the insured in the management of funds) The corollaries of the principle of free disposal The absence of control over the use of funds Flexibility in damage repair (encouragement to rapid and effective repair, adaptation to the specific needs of the insured) II- The absolute limits of the principle of free disposal of the indemnity in insurance of damages Legal limits to the principle of free disposal of the indemnity Repair of damage to a built property (Article L121-17) The content of Article L121-17 of the Insurance Code resulting from the Barnier Law (resulting from this law relating to the strengthening of environmental protection. [...]