The Italian government has recently extended the statutory time limit for exercising rights under a contract of insurance (other than the right to the payment of premium), from one to two years.
The new statutory limit applies to the right of the insured/beneficiary to claim payment of the indemnity, the right of recourse of the insurer against the insured, and the right of the insured to obtain the payment of salvage expenses.
The new statutory time limit applies to both the rights that arose after the 28 October 2008 (when the new law come into force) and to rights that, at this time, were already existing but where the statutory limit had not yet expired.
This modification aims to grant the insured a longer period within which to exercise their right to an indemnity.
It is likely that insurer will increase their technical reserves as a consequence.