Nemo auditur propriam turpitudinem allegans – in
what way can parties invoke their own misconducts to claim
rights?
Under Luxembourg insurance contract
law, loss resulting from the misconduct of policyholders or
insureds is insurable; Article 14(2) of the Insurance Contract
Act1 states that an insurer will cover even gross
misconduct unless the contract provides otherwise.
Misconducts' insurance
Misconducts' insurance is a fundamental principle under
Luxembourg insurance contract law and has proven to be an effective
method of risk management with respect to professional liability
incurred by companies and their executives.
This is evidenced by the increasing popularity of directors'
and officers' (D&O) liability insurance. D&O insurance
is intended to cover pecuniary consequences of civil liability
incurred as a result of professional misconduct, which becomes more
likely as the responsibilities incumbent on economic actors and
their managers increase.
