COTE D’IVOIRE Law and Practice Contributed by: Assemian Kouakou, Innocent Kouakou, Francky Lukanda and Lamine N’Diaye, Ofori Conseils Africa LLP
9.7 Alternative Dispute Resolution Insurance Disputes
9.9 Insurers’ Rights of Subrogation Legal Subrogation Mechanism in Favour of the Insurer In accordance with Articles 42 and 43 of the CIMA Code, an insurer who compensates the insured is legally subrogated, up to the amount paid, to the rights and actions of the insured against the third party responsible for the damage. This subrogation allows the insurer to exercise a subrogatory recourse against the third party or their insurer as soon as the insured has been compensated. Limitations on Rights The insurer may be released from all or part of its guarantee if subrogation can no longer operate in its favour due to the insured. In life insurance, subroga- tion does not exist after payment of the sum insured to the policyholder or beneficiary, except for a spe- cific clause limited to advances on compensation for unrepaired damage. Subrogation only applies in the context of contractual guarantees, regardless of the method of payment (initiative of the insurer, settlement or judgment). In Côte d’Ivoire and throughout the CIMA zone, insurtech developments are focused on the digitalisa- tion of brokerage, underwriting and claims reporting. To this end, Regulation No 01/CIMA/PCMA/CE/ SG/2024 came into force in 2024, governing the terms and conditions for the distribution and management of insurance contracts by digital or electronic means in CIMA member states. It defines a digital insurance contract as any contract distributed and managed entirely or partially via mobile phone, the internet or similar media. The products concerned are mobile microinsurance, digitalised property/life insurance, and services such as online claims reporting and digital data storage. 10.2 Regulatory Response CIMA has responded to the challenges of insurtech by adopting Regulation No 01/CIMA/PCMA/CE/SG/2024 10. Insurtech 10.1 Insurtech Developments
In Côte d’Ivoire, alternative dispute resolution, particu- larly mediation, is playing an increasing role in insur- ance disputes by offering a rapid, confidential and amicable out-of-court route through institutions such as the Insurance Mediation of Côte d’Ivoire (MEDAS- SI). This entity provides insured persons with a dedi- cated mechanism for resolving disputes with insurers regarding the application or interpretation of insurance contracts, in addition to the mandatory waiting period imposed by Article 239 of the CIMA Code before any court action can be initiated. Consumer Contracts In consumer contracts, mediation and conciliation are strongly encouraged, particularly through institutions such as the Côte d’Ivoire Arbitration Court (CACI), in order to facilitate access for individuals to amicable and inexpensive solutions. Reinsurance Contracts In reinsurance contracts, however, disputes mainly concern B2B relationships and are primarily resolved through arbitration, in accordance with contractual practices and the regulatory framework of the CIMA Code. 9.8 Penalties for Late Payment of Claims In Côte d’Ivoire, insurers are subject to strict legal penalties for unjustified delays in settling claims. The CIMA Code provides for mandatory late payment interest of 5% per month on the amount of the indem- nity, applied automatically when the offer or payment is not made within the maximum period of six months prescribed in Articles 231, 233 and 236 of the CIMA Code. This interest may be reduced only if the delay is due to circumstances beyond the insurer’s control. No punitive damages are provided for in the CIMA Code; penalties are limited to default interest. The Ivo- rian courts regularly apply these penalties, which are intended to ensure the prompt settlement of claims without resorting to additional punitive mechanisms.
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