Refusal or Reduction of Benefits in the Event of an Accident during a Hill Climb Automobile Race

Facts

On October 7, 1984, Benoît Ruedin was the victim of an accident while participating in a hill climb automobile race. Following this accident, La Neuchâteloise, Swiss General Insurance Company, reduced by half the cash benefits paid to Benoît Ruedin, on the grounds that his participation in this race constituted a reckless undertaking within the meaning of Art. 39 AIA and Art. 50 para. 2 AIO. Benoît Ruedin appealed against this decision, but his appeals were dismissed by the Administrative Court of the Canton of Neuchâtel and by the Federal Insurance Court.

Considerations

The Federal Insurance Court considered that the concept of reckless undertaking within the meaning of the AIA is identical to that which was valid under the LAMA. It thus distinguished two types of reckless undertakings: those which, regardless of the insured's abilities, involve particularly significant risks, and those which do not immediately appear reckless, but for which the insured must meet certain requirements in order to be able to expose himself to them without risk.

The Federal Court then considered that participation in a hill climb automobile race constitutes an…