Insurance companies cannot refuse to renew property insurance because of the policyholder's connection to a motorcycle environment

An insurance company had changed its internal policy and no longer wanted to offer liability insurance to the so-called 1% motorcycle clubs. A policyholder affiliated with the Hells Angels was then notified that the property insurance for the club’s premises in Bergen would not be renewed at the end of the insurance period.

The Supreme Court has found that the conditions for refusing to renew the insurance contract are not met.

According to section 3-5 subsection 1 of the Insurance Contracts Act, the company may only refuse to renew an ongoing insurance contract if there are special reasons that make it reasonable to discontinue the insurance. This provision must be interpreted as meaning that there must be circumstances of importance to the insurance risk that the agreement represents, or circumstances that are otherwise important for the implementation of the insurance relationship.

The insurance company’s lack of general trust in the policyholder, assessments of its social responsibility and its own commercial interests could not justify discontinuance.

The judgment clarifies the interpretation of section 3-5 subsection 2 of the Insurance Contracts Act.

Read the whole judgment (Norwegian only) (PDF)

Areas of law: Forsikringsrett. Forsikringsavtaleloven § 3-5 andre ledd.

Key paragraphs: 57, 58.

Justices: Matheson, Bull, Bergh, Thyness, Steinsvik