21. Calculation of the indemnity
- The insured sum for each guarantee represents the maximum limit on the indemnity to be paid by the insurer for each loss.
- The insurance may not be the object of unfair enrichment for the insured. To calculate the damage, the value of the insured interest at the moment immediately prior to the occurrence of the loss shall be used.
- If, at the moment at which the loss occurs, the sum insured for each one of the covers included in the policy is less than the value of the insured interest, the insurer shall indemnify the damage caused in the same proportion as said sum covers the interest.
The parties may, by mutual agreement, exclude the application of the average condition described in the previous paragraph.
- If, at the moment at which the loss occurs, the insured sum for each one of the covers included in the policy notably exceeds the value of the insured interest, either of the parties hereto may require the reduction of the insured sum and the insurer shall reimburse the surplus from the premium already collected. Should the loss occur, the insurer shall indemnify the damage actually caused.
When the over-insurance is due to bad faith on the part of the insured, the contract shall be ineffective. The insurer may, in good faith, withhold the premiums from previous years and those for the period underway.