The court prohibits the defendant, under the penalty of a fine, when offering consumer insurances for consumer electronics, to apply the following contractual terms or substantially similar terms:
a. the insurance period is 12 months, however the entire insurance period may not exceed 5 years;
b. the insurance will automatically terminate in the event of total damage or theft by burglary if you are compensated with a replacement product. The premium will then not be refunded and the insurance will not be transferred on to a replacement product.
The court finds that the first contractual term regarding the agreement term is contrary to mandatory provisions in the Swedish Insurance Contracts Act, which states that the agreement term shall not exceed 12 months unless special circumstances apply. Despite the defendant's objections that longer agreement terms are common in the industry and that the agreement may be terminated before the end of each 12 months' period, the court finds that the contractual term is unfair as it is contrary to mandatory law.
The Court considers that the second contractual term, which specifies that the insurance shall terminate automatically upon total damage or theft by burglary and that no part of the premium then shall be refunded and that the insurance is not passed on to the new product, is contrary to mandatory provisions in the Swedish Insurance Contracts Act. Thus, the contractual term shall be considered unfair against consumers.
Both the contractual terms in question are included in the defendant's standard terms and conditions, which apply in relation to all consumers. Due to this fact and from a public point of view, the court finds that the defendant shall be forbidden to use these contractual terms or substantially the same terms.