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The two-year limitation period in insurance: what you need to know
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What is the two-year prescription?
Common law: The French law of June 17, 2008 introduced a new common law limitation period for civil and commercial claims. Articles 2224 of the Civil Code and L110-4 of the Commercial Code set this period at 5 years.
In terms of insurance: The law sets a 2-year statute of limitations for any action related to an insurance contract (Article L.114-1 of the Insurance Code).
Article L.114-1 of the Insurance Code: "All actions arising from an insurance contract are time-barred after two years from the event giving rise to them."
The two-year prescription period is of order público which means that
When does this 2-year period begin?
Principle: the starting point is the day of the event (the incident or the triggering event that initiates the action). Exceptions
Irregular declaration
Article L.114-1 al 2, 1\° of the Insurance Code: the time limit does not start running "in case of concealment, omission, false or inaccurate statement about the risk incurred, only from the day the insurer becomes aware of it".
Knowledge of the disaster
Article L114-1 al2, 2nd paragraph of the Insurance Code: The time limit does not start "in the event of a claim, until the day when the interested parties became aware of it, if they prove that they were unaware of it until then".
Third party recourse
Article L.114-1, paragraph 3, 3rd : "When the insured's action against the insurer is due to a third party's recourse, the prescription period only begins on the day when this third party has taken legal action against the insured or has been compensated by the insured." (summons, conclusions...).
Inability to act
Article 2234 of the Civil Code: "The statute of limitations does not run or is suspended against someone who is unable to act due to an impediment resulting from the law, agreement, or force majeure."
The interruption of the prescription
Several actions can interrupt the statute of limitations. A new 2-year period restarts after the interrupting act:
The causes of common law interruption (article 2,2240 and following of the civil code)
The causes of common law interruption, as defined by Article 2.2240 and following of the Civil Code, include several specific situations.
First of all, a request for legal action, even in summary proceedings, can result in an interruption. Secondly, a acknowledgment of debt by the insurer or the insured is also considered a cause of interruption.
Finally, a conservatory measure taken in accordance with the Code of Civil Enforcement Procedures or an act of forced execution may also interrupt the deadline.
The special causes of interruption of the right to insurance
Article L114-2 of the Insurance Code provides for 2 other specific causes of interruption of the two-year limitation period:
- A registered letter with acknowledgment of receipt (RAR) sent to the insurer.
- The appointment of an expert.
There are also cases of suspension where the deadline is temporarily put on hold:
- The management of the trial by the insurer : the statute of limitations is suspended until the end of the procedure
- Inability to act : Article 2234 c.civ
Point of vigilance on contractual obligations
Insurance contracts must imperatively mention the rules of prescription. If this information is missing, the prescription period cannot be invoked against the insured.
Good to know A recent decision by the Court of Cassation (May 30, 2024) reminds that the insurer must mention all causes of prescription interruption in the contract, otherwise it will not be able to invoke the two-year prescription.
The required mentions under penalty of unenforceability are cumulatively:
- the full reproduction of article R.112-1 of the Insurance Code;
- the reminder of the two-year deadline of article L.114-1 of the Insurance Code;
- the reminder of the different starting points of the prescription;
- the reminder of the causes of interruption of the prescription of article L.114-2 of the Insurance Code;
- The reminder of the ordinary causes of interruption of the common law prescription from the Civil Code.
If you have a dispute or a claim for compensation, Do not wait Think about acting before the expiration of 2 years to avoid any unpleasant surprises. If in doubt, a simple registered letter may be enough to interrupt the deadline and preserve your rights!
