Lloyd’s recommends that insurance contracts for Italian insureds are in Italian for the following reasons:
- If the contract is prepared in English, and a dispute arises about the contract and reaches an Italian court, the court will require a translation of the policy into Italian. Moreover the court could require evidence in writing that the insured positively agreed to receive a contract in English and that an English language contract was not simply imposed unilaterally by the insurer.
- A literal Italian translation of an English policy wording may not be legal under the Civil Code as the wording must comply with Italian law. Italian law requires the inclusion of certain clauses and articles in all insurance contracts written on an establishment basis.
Consequently a contract in English may be unenforceable at law, unless care is taken.
If an English language wording is used for an Italian risk, we recommend that:
- The insured declares that he understands English and the contract wording. The insurance contract can then incorporate a clause such as NMA 2336 which is available on the Lloyd's Wordings Repository.
- The managing agent obtains confirmation that the wording complies with Italian law. The English language versions of NMA, LSW and LMA (Italy) wordings are compliant. Advice may be sought on an English language wording from Lloyd's Italian Office.
Note that Lloyd’s cargo certificates for Italian business may be in English.