Facts
The case concerns a company, Marketing 2000 SA, which took out comprehensive insurance for its vehicle with Vaudoise Assurances in 1986. On January 1, 1992, Marketing filled out a proposal to replace the comprehensive insurance with partial insurance. The proposal reached the insurer on January 6, 1992. The insurer did not react within the legal deadline of 14 days and then sent a new proposal form on January 21, which was not returned by the policyholder. Meanwhile, the vehicle suffered total damage on January 26, 1992. Vaudoise Assurances refused to cover the loss, arguing that the comprehensive insurance coverage was no longer guaranteed as of January 1, 1992.
The parties were judged by the Geneva Court of First Instance, whose judgment was confirmed by the Geneva Civil Court. Vaudoise Assurances then appealed to the Federal Tribunal.
Considerations
The Federal Tribunal examined the question of whether the proposal of January 1, 1992, constituted a proposal for a new contract or a modification of an existing contract. According to art. 1 IPA, an insurance proposal is binding for 14 days, while art. 2 IPA provides that the insurer's silence within 14 days is deemed acceptance for proposals aiming to modify an existing contract.
The Federal Tribunal considered that replacing comprehensive insurance with partial insurance must be treated as a modification of an existing insurance contract, as it is a reduction of an already insured risk. The change in insurance premium does not change this, as it is the consequence of the reduction in existing insurance coverage.
The Federal Tribunal also rejected Vaudoise Assurances' argument that the proposal of January 1 emanated from the insurer and not the policyholder, as it…