The Supreme Court confirms that the dies a quo for calculating the insurer's default interest is the day of the incident.

The Supreme Court's Judgment 853/2024 sets a precedent for calculating insurers' default interest under Article 20, paragraph 8, of the Insurance Contract Law, establishing the date of the incident as the starting point for calculation, rather than the date of the first judicial claim or the filing of the lawsuit.

The Supreme Court's Judgment 853/2024 sets a milestone for calculating insurers' default interest under Article 20, paragraph 8, of the Insurance Contract Law, establishing the date of the incident as the starting point for calculation, rather than the date of the first judicial claim or the filing of the lawsuit.

Default in insurance companies is regulated in Article 20, paragraph 8, of the Insurance Contract Law, which states, “There shall be no entitlement to compensation for the insurer’s delay when the failure to settle the compensation or pay the minimum amount is based on a justified cause or one that is not attributable to the insurer.” This provision thus regulates and imposes a penalty intended to punish the delay in paying a known incident. It specifies what must be paid and when.

The Civil Chamber of the Supreme Court resolves a dispute affecting many proceedings in which an insurance company is sued, specifically one of the most significant and often financially substantial matters: the dies a quo, or the day from which the calculation of default interest should begin. These interest rates are much higher than procedural default interest, as their purpose is to expedite the payment of compensation to the injured party when there are substantial indications of liability.