SWEDEN Law and Practice Contributed by: Viveka Classon, Karin Rättzén and Sara Stålebring, Advokatfirman Vinge KB
with respect both to consumer insurance and com- mercial insurance, although the provisions regarding commercial insurance are less strict. In respect of commercial insurance, the parties are free to agree on the commencement of the insurer’s obli- gations under the insurance contracts. This condition precedent for risk must not be expressly described; it can also be apparent from the circumstances. Conditions precedent to liability must be clearly set out in the policy terms or in statutory provision referred to in the policy (a security provision), see 8.2 Warranties . In the event of a breach of a security pro- vision in a consumer insurance contract, the insurance compensation to the insured party may be reduced in accordance with what is reasonable in light of the nexus of such failure, the loss, whether there was neg- ligence or intent, and other circumstances. In respect of a breach of a security provision in a commercial insurance contract, compensation from the insurance policy shall be paid only to the extent that it can be deemed that the damage would have occurred even in the event of compliance with the provision. A party with the obligation to ensure compliance with the pro- vision is, in this respect, equated with the insured. 9. Insurance Disputes 9.1 Insurance Disputes Over Coverage Disputes In Sweden, there are no courts specialised in insur- ance disputes. Instead, insurance disputes are, as for all civil actions, commenced at the competent local District Court regardless of the value of the dispute. However, as a general rule, the Swedish Procedural Code permits agreements on exclusive jurisdiction of a specific court in a jurisdiction clause. For rein- surance and non-consumer insurance, an arbitration clause is often preferred. Limitations Under the ICA, an insurance claim against an insurer must be made within ten years of the insured event. The deadline for initiating legal action is ten years and six months, provided that the policyholder has sub-
mitted a claim to the insurance undertaking within the ten-year period. For non-consumer insurance, the insurance under- taking may require legal action to be initiated within a shorter time frame. This requirement must be made in writing. However, the time period may not be shorter than one year from the date on which the insured receives the written notice. Third Parties The main rule under Swedish law is that agreements can confer rights and obligations only on the parties entering into the agreement. However, under certain circumstances, third parties may derive rights from an agreement. According to the ICA, there are three situations in which a third party with a claim on the policyholder has the right to claim compensation directly from the insurance undertaking providing the liability insur- ance, as follows: (a) where the policyholder is obligated by law to hold liability insurance; (b) where the policyholder has entered into bank- ruptcy or reconstruction, and a reconstruc- tion plan under the Swedish Act on Corporate Reconstruction (2022:964) has been approved; and (c) where the policyholder is a legal entity that has been dissolved. Additionally, a third party can have rights as a benefi- ciary under a life insurance policy. A policyholder with a life insurance policy offering survivor’s benefits has the right to designate a beneficiary. This may include naming a specific person or specifying a relationship, such as “spouse” or “children”. If no beneficiary is designated, the insurance compensation will be dis- tributed to the deceased’s estate. 9.2 Insurance Disputes Over Jurisdiction and Choice of Law If Regulation (EU) No 1215/2012 of the European Par- liament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (the Brus-
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