INSURER NEEDS TO PROVE DELIBERATE DAMAGE SAYS JAPAN SUPREME COURT

A decision by Japanese insurer Aioi to refuse payment on a claim on the grounds that the damage sustained was deliberate rather than accidental requires proof from the insurer, Japan’s Supreme Court ruled today. The plaintiff had claimed ¥3.5m for damage to a motor caravan, which he had parked on a slope and then left with the motor still running. Presiding judge Kazuko Yokoo said that the burden of proof lies with the insurer if it wanted to deny payment on the grounds that the event was deliberately caused rather than accidental. It then returned the matter to the Nagoya High Court. It is the first Japanese Supreme Court ruling in a motor insurance case. Previously the Japan Supreme Court has ruled that burden of proof rests with insurers in cases of alleged arson, but with claimants in casualty insurance. Life assurers are also required under the Commercial Code to prove cases of suicide that would void life policies.