What is a franchise?

Franchises
What is a franchise?
The principle of the franchise is clearly defined by Article L. 121-1, paragraph 2 of the Code of Insurance which states that "it may be stipulated that the insured must remain its own insurer for a sum, a specific quota, or that it supports a deduction fixed in advance on the compensation of the incident ".

The franchise is therefore the amount that remains at your expense after compensation by the insurer.

For example, if your contract provides for a franchise of 250 euros and that your damage amounted to € 1,000, the allowance that will be paid by your insurer will be 1,000-250: 750 euros.

 

Note the franchise can be absolute or relative. If absolute, for each disaster, the insurer impute it from the amount of the allowance. While when it is relative, once the amount of the frankness reached, the insurer supports the entire disaster.

 

Example: The amount of a loss is fixed at 10,000 euros.

In case of absolute franchise at 5,000 euros, you will not receive from your insurer only 5,000 euros.

In case of franchise relating to 5,000 euros, you will receive from your insurer 10,000 euros.

 

 

 
8 - Obscured clauses and abusive clauses: the Consumer Code protects you

 

The obscure clauses
Sometimes the text of a clause of a contract is obscure or ambiguous. The consumer believes that the writing is in his favor. The professional develops the inverse thesis.

 

Who is right ? And who is wrong?
The Civil Code (Articles 1188 to 1192) provides guidance on how to interpret contracts. In particular, it specifies that the common intention of the Contracting Parties should be asked rather than stop in the literal sense of terms.

Article L. 211-1 (former Article L. 133-2), the Code of Consumer comes to support the consumer.

 

Indeed, the clauses of contracts proposed by professionals to non-professionals and consumers must be presented and written in a clear and understandable manner. In case of doubt, they are interpreted in the most favorable sense of consumer or non-professional (Cass. I, January 21, 2003, n ° 00-13342, a clause defining the invalidity risk was ambiguous so that 'She had to be interpreted in the most favorable sense of consumer; Cass. Civ. I, July 13, 2006, No. 05-18104, deadline for a guarantee doubling the capital assured following the recognition of a State disability; Cass. CIV. I, 22 May 2008 n ° 05-21822, non-application of a disability guarantee);

 

Abusive clauses
Article L. 212-1 of the Consumer Code is the cornerstone of consumer protection in its contractual relations with professionals. Indeed, this legislative provision makes it possible to not write a clause, a contract that binds a professional to a consumer or non-professional, which creates a significant imbalance in the rights and obligations of the parties to the detriment of the consumer or non-professional .

The insurance sector has been particularly concerned by this legislation since its creation in 1978.

 

How to determine that a clause is abusive?

1 - Refer to the list of so-called black clauses. These are clauses that are presumed, without the possibility of challengeing it, abusive. We count twelve. They are specified in Article R. 212-1 of the Code of Consumer.

 

2 - If you have not detected black clauses, refer to the list of gray clauses. These are suspected abusive clauses unless the professional brings the evidence. We count ten. They are exposed to Article R. 212-2 of the Code of Consumer.

 

3 - In case of failure in the second step, refer to the recommendations of the Commission on abusive clauses present on its website: www.causes-abusive.fr.

The Commission has had to deal with several insurance contracts: home insurance, tourism vehicle insurance, insurance damage, legal protection insurance ...

 

4 - Do not hesitate in the event of a doubt on a clause to bring you closer to the case law (consignable largely on www.causes-abusive.fr) and seize the judge.

Note: By a very important judgment of 23 April 2015, the Court of Justice of the European Union has come to clarify that the legislation of the abusive clauses may apply to the purpose of the contract, for example the definition of the guarantee, if The clause, object of the dispute, is not written in a clear and understandable way.

 

What is a clear and understandable written clause?
The stop brings us the answers: it is a clause that is not only inadquirgible for the consumer on a grammatical plan but also when the contract, in which it is part of, transparently exposes the concrete functioning of the mechanism.