A Taste for Risk – Chronicles of Luxembourg Insurance Law

Claim

“The occurrence of the insured risk.”

Examples:

• Fire affecting the insured building
• Death of the insured
• Liability claim brought against a director

Premium

“Any form of remuneration requested by the insurer in consideration for its commitments.”

Examples:

• Annual home insurance premium
• Monthly health insurance premium
• Single premium paid under a life insurance policy

Insurance benefit

“The amount payable or the service to be provided by the insurer in performance of the insurance contract.”

Examples:

• Payment of compensation
• Payment of a death benefit
• Life annuity
• Coverage of legal defence costs
• Formal notice sent by a legal expenses insurer

Insurable interest

“The interest in preventing the uncertain event from occurring.”

Examples:

• A property owner’s interest in preserving their building
• A business owner’s interest in avoiding personal liability
• A parent’s interest in financially protecting their family

General and special conditions

General conditions

“A set of standardised clauses drawn up by the insurer and applicable to all contracts of the same type, defining in particular:

• the purpose of the contract, the cover provided, exclusions and forfeitures of cover;
• the procedures for settling claims;
• and the rights and obligations of the parties.”

Special conditions

“The customised part of the insurance contract supplementing the general conditions. They identify, in particular, the insured, the insured property or person, the insured value or amount, the premium, the duration and expiry date of the contract, as well as any intermediary involved. The special conditions prevail over the general conditions.”

Endorsement

“A document recording an amendment to the original contract.”

Examples:

• Change in the insured value
• Change of beneficiary
• Extension of the duration of the contract
• Addition or removal of cover

➡️ For any questions regarding insurance law, please contact Benjamin Nicolas.