Reduction of the indemnity in the ratio of the premium paid to the premium that would have been due had the risk been correctly disclosed.
The proportional rule of premium sanctions inaccurate disclosure of the risk where bad faith is not established. Compensation is cut in the ratio of the premium actually paid to the premium a correct disclosure would have called for, a calculation the insurer must establish from its own rate tables, produced in the file. It differs sharply from voidance, which strikes intentional misstatement, leaves premiums with the insurer and removes any payment: between the two sanctions it is intent that decides, and it is for the insurer to prove it. The rule applies whether or not the inaccuracy bears any relation to the loss that occurred, which makes it severe, yet it stays proportionate since it restores the economic equation rather than erasing it. In compulsory liability insurance it cannot be raised against the victim, who is paid in full, the insurer then pursuing its own policyholder. The problem solved is good faith inaccuracy, too common to punish as fraud and too costly to ignore.
Articles L. 113-8 and L. 113-9 of the French Insurance Code organize the pair. A policyholder who paid 400 euros where correct disclosure would have called for 500 sees compensation cut to 80% of its amount, whatever caused the loss. The mixed chamber of the Court of Cassation, on February 7, 2014, made any sanction conditional on precise questions having been put before the contract was signed.
réduction proportionnelle d'indemnité, sanction de la fausse déclaration non intentionnelle