WHAT IS AN INSURANCE AGREEMENT UNDER NETHERLANDS ANTILLES LAW?
Cover for actual damage as a result of an uncertain event
According to article 315 of the ‘Wetboek van Koophandel Nederlandse Antillen’ (Netherlands Antilles Commercial Code) “Insurance is the agreement whereby an insurer commits itself to the insured, against receipt of a premium, to compensate the latter for a loss, damage or loss of expected advantage which the insured could suffer as a result of an uncertain event“.
Based on this definition the main elements of insurance agreements are held to be (i) the presence of an insurable interest on the part of the insured party, (ii) a specified future uncertain event for which the insurance offers protection and (iii) compensation of actual damage (i.e., payments only upon proof of loss and only to the extent of the loss).
As to (i): without an insurable interest (identified or identifiable at the outset of the insurance agreement and still present at the time the uncertain event occurs), the insurer is under no obligation to compensate the insured.
As to (iii): the insured may not profit if the uncertain event occurs; he can only claim up to the amount of his actual loss (Dutch Supreme Court 3 March 1972, NJ 1972, 339).
Karel Frielink
Attorney (lawyer) / Partner
