About value
The RF Civil Code stipulates that the insurance value of assets, referred to in the insurance contract, may be contested provided that the Insurer was intentionally misled by the Insured with regard to this value. The arbitration practice has shown that arbitrators do not tend to recognize that the insurance value is overstated, particularly if it has been determined based on an appraisal report.
Read the caseAbout derived expenses
Fairly often the insured parties claim compensation of expenses that they incurred due to an insured event (expert’s valuation and consultant fees, etc.). If insurance contracts do not expressly provide for insurance compensation of such expenses, insurance companies do not tend to compensate them.
Read the caseAbout BI factors
Business interruption (BI) insurance is one of the most complicated insurance covers. There are not many experts capable of adequate assessment of the incurred loss of profit, which allows unscrupulous parties to misrepresent their losses in court. Based on our experience, in nearly half of the cases the loss of profits is calculated as the difference between the target profit and the profit, which was actually gained in the business interruption period.
Read the caseAbout misleadings
For a long time, arbitration courts had been agreeing to invalidate insurance contracts based on Article 944 of the RF Civil Code only in cases when it was proved that the Insurer had been deliberately misled by the Insured with regard to information communicated to the Insurer upon signing an insurance contract.
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