Legal Literature

Unfair Contract Terms Directive, link Unfair Contract Terms Directive, Article 4, 2. Unfair Contract Terms Directive, Article 5

This article comments on the importance of the principle of transparency in the pre-formulated standard clauses (General Terms of Transactions) included in insurance policies. It also focuses on the obligations and the rights of the insured persons/consumers with regards to an insurance agreement. In particular, reference is made to the need to abide to the consumer protection provisions regarding the drafting of these clauses; they should be drafted in a plain, clear and intelligible manner in order to provide detailed information to the consumer; the consumer must be also able to fully understand their meaning. The author points out the scope and the essence of transparency in the pre-defined standard clauses (General Terms of Transactions) as a significant element for clear and fair transactions. Moreover, the article contains an analysis of the national case-law regarding the role of transparency in insurance contracts in specifically. It also elaborates on the consequences in case the principle of transparency is breached; a term becomes unfair and therefore invalid as void.