Duties of the insurer in relation to aggravation of risk (Art. 1444-1445 of TCC)

The subject of our study is the duties of the policyholder regarding the aggravation of the risk. After the conclusion of the insurance contract, certain duties are imposed on the policyholder. One of the duties of the policyholder during the term of the contract is the duty not to aggravate the risk and the duty to notify the aggravated risk. The subject of the duty not to aggravate the risk is subjective risk aggravations. Subjective risk aggravations are aggravations that can be attributed to the will of the insured. Both subjective and objective aggravations of risk constitute the scope of the duty to notify the aggravated risk. Objective aggravation of risk occurs when the premium-risk balance is disturbed to the detriment of the insurer due to reasons that cannot be attributed to the will of the policyholder and the risk is aggravated. The duty not to aggravate the risk and the duty to notify the aggravated risk are regulated under Art. 1444 of the TCC under the subtitle "Declaration Obligation" and the subheading "Within the Contract Period". With the aggravation of the risk, the insurer may have various opportunities to restore the premium-risk balance that has changed to the detriment of the insurer. For this reason, the provisions and consequences of the aggravation of the risk are regulated in detail under Article 1445 of the TCC. Article 1445/1 of the TCC grants the insurer the right to terminate the contract and demand additional premium upon the occurrence of aggravation of the risk. During the term of the contract, the insurer may terminate the contract or demand additional premium within a one-month grace period as of the date of learning of the aggravation of the risk through the notice of the policyholder or any other means. Art. 1445/5 of the TCC and Art. 1445/7 of the TCC regulate the opportunities provided to the insurer after the occurrence of the risk. After the occurrence of the risk, if the insurer fails to fulfil its duty not to aggravate the risk or to notify the insured, the insurer may be partially or wholly released from its obligation to pay the indemnity or insurance amount.