Are administrative fines insurable in Luxembourg?
Nemo auditur propriam turpitudinem allegans – in what way can parties invoke their own misconducts to claim rights?
Under Luxembourg insurance contract law, loss resulting from the misconduct of policyholders or insureds is insurable; Article 14(2) of the Insurance Contract Act(1) states that an insurer will cover even gross misconduct unless the contract provides otherwise.
Discover the article by expert, Miryam Lassalle.
Source: ILO - December 2019
(1) Law of 27 July 1997 on the Insurance Contract, as amended.
(2) According to Article 1A of the Insurance Contract Act, an 'insurance contract' is a contract under which, on payment of a fixed or variable premium, one party (ie, the insurer) commits to another party (ie, the policyholder) to provide a benefit stipulated in the contract when:
- an uncertain event occurs which negatively affects the insured (in case of damage insurance); or
- an uncertain event occurs that affects the insured's life, physical integrity or family situation (in case of life insurance).
