COTE D’IVOIRE Law and Practice Contributed by: Assemian Kouakou, Innocent Kouakou, Francky Lukanda and Lamine N’Diaye, Ofori Conseils Africa LLP
contracts and commercial contracts, even though, in practice, the insurer’s duty to advise is stricter towards consumers, and commercial contracts often involve more technical information. 6.2 Failure to Comply With Obligations of an Insurance Contract Failure by the insured to comply with their obligation to provide information when negotiating the contract has different consequences depending on whether they acted in good or bad faith. In the event of con- cealment or intentional misrepresentation that alters the nature of the risk or the insurer’s assessment, the contract is void in accordance with Article 18 of the CIMA Code, and any premiums already paid are retained by the insurer, who may also claim any pre- miums due. On the other hand, according to Article 19 of the CIMA Code, an unintentional omission or error cannot result in nullity: before a claim, the insurer may propose an increase in premium or terminate the con- tract with a refund of the unearned premium, and after a claim, the indemnity is reduced in proportion to the premium actually paid. Conversely, if the insurer fails in its duty to provide information or advice, it cannot blame the insured for an omission relating to an item that it did not request and may be held civilly liable. 6.3 Intermediary Involvement in an Insurance Contract The involvement of an intermediary in the negotiation of an insurance contract depends on their status: the general agent acts in the name and on behalf of the insurer, so that their actions directly bind the company, while the broker acts on behalf of the insured by seek- ing the best insurance conditions for them, with any breaches binding their own professional liability. In all cases, intermediaries are subject to the obligations set out in Article 529 et seq of the CIMA Code, in particular registration, the duty to provide information and advice, loyalty, confidentiality, transparency, and the diligent transmission of premiums and documents, and any breach of these obligations may result in civil liability. 6.4 Legal Requirements and Distinguishing Features of an Insurance Contract In Côte d’Ivoire, an insurance contract must be in writ- ing and signed by the insured and the insurer, and
must be based on a real and legitimate insurable inter- est. The contract is characterised by its random, oner- ous, consensual and often intuitu personae nature: the insured pays a premium and the insurer undertakes to pay a benefit in the event of a claim. To be valid, it must contain at least the identification of the parties, the subject matter of the contract and the risk insured, the amount of cover and guarantees, the premium and its terms of payment, the duration, the obligations of the parties, exclusions and limitations, as well as the terms and conditions for reporting and settling claims and the conditions for terminating or amending the contract as defined by the provisions of Article 8 of the CIMA Code. 6.5 Multiple Insured or Potential Beneficiaries In Côte d’Ivoire, third parties such as tenants, sub- contractors or mortgagees may be designated as beneficiaries of an insurance contract, provided that their role and right to compensation are expressly mentioned and clearly identified in the contract. These beneficiaries do not become insured in the strict sense, but their inclusion may lead the insurer to request specific information about the risks they represent to determine the appropriate coverage and premium. The insured remains obliged to disclose any relevant information concerning these third parties, and any failure to do so, whether in good or bad faith, may result in a proportional reduction in compensa- tion or the nullity of the contract, in accordance with Articles 18 and 19 of the CIMA Code. 6.6 Consumer Contracts or Reinsurance Contracts The general principles of the CIMA Code apply to both consumer contracts and reinsurance contracts, but the situation differs in practice. Consumer contracts, taken out by individuals, benefit from enhanced pro- tection with a strict duty of advice on the part of the insurer and a more favourable application of the prin- ciple of good faith on the part of the insured, while reinsurance contracts, concluded between informed professionals, are based on greater contractual free- dom, in-depth technical and financial negotiations, and liability adapted to omissions or misrepresenta- tions according to the professional nature of the par- ties.
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