ITALY Law and Practice Contributed by: Giovanna Aucone and Debora Gobbo, FIVERS Studio Legale e Tributario
9. Insurance Disputes 9.1 Insurance Disputes Over Coverage The Italian legal system does not provide for special- ised courts for disputes between insured parties and insurers. Disputes that may arise concerning insur- ance contracts are, in principle, referred to the ordi- nary civil courts. If the policyholder and/or insured party is a natural person, they may enjoy specific procedural advan- tages provided for by the Consumer Code such as jurisdiction of the court at the consumer’s place of residence. Proceedings regarding reinsurance contracts fall in the jurisdiction of the ordinary courts and are governed by the rules of civil procedure. In practice, reinsur- ance contracts often include an arbitration clause that devolves the jurisdiction to settle disputes between insurers and reinsurers to an arbitration panel. The limitation period for rights arising from insurance contracts is governed by Article 2952 of the Civil Code. The insurer’s right to demand the payment of the pre- mium expires one year after the due date of the indi- vidual instalment. Other rights arising from insurance contracts expire after two years. The limitation period starts from the day on which the event on which the right is based occurred, which is normally the moment when the insured event occurred. However, case law has developed various guidelines that differ in terms of the moment from which the limitation period starts depending on the type of insurance contract (for example, loss occurrence or claims made) and the type of damage. Rights arising from life insurance contracts are subject to a limitation period of ten years. The limitation period may be interrupted, for exam- ple, by a written request to the insurer containing a demand to enforce the right.
In general, rights arising from the insurance contract can only be exercised by the policyholder/insured or, in the case of life insurance policies, by the benefi- ciary. However, Italian law provides for some exceptions in which an injured party – a person not directly involved in the insurance relationship – can take direct action against the insurance company to claim insurance compensation under a policy taken out by the liable party. For example, in motor vehicle liability insurance poli- cies, the injured party can sue the insurance company of the vehicle that caused the accident directly for the compensation of damages. Also in medical liability cases, direct action against the insurer of the medical facilities and doctor is allowed. 9.2 Insurance Disputes Over Jurisdiction and Choice of Law Pursuant to the Code of Private Insurance, when the EU member state where the risk is located or of the obligation is the Italian Republic, Italian law and the jurisdiction of Italian courts apply to non-life and life insurance contracts. However, the parties of an insur- ance contract are not precluded from choosing a law other than Italian law to govern the insurance or rein- surance contract or from selecting the jurisdiction of a foreign court. Relations between the Italian state and third countries not belonging to the European Union are governed by Law No 218/1995, which governs Italian Private International Law. In relation to other member states, the Brussels I-bis Regulation on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, and in particular the provisions on the jurisdiction for insurance disputes (Section III, Articles 10–16), apply. 9.3 Litigation Process The ordinary litigation process is divided into four stages: • the introductory stage, which includes the noti- fication of the writ of summons, determining the pendency of the dispute, the appearance and
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