Lisbon Court of Appeal
Case Nr. 7459/16.2T8LSB-A.L1-2
The insured is not bound by the arbitration agreement inserted in an insurance contract entered into between the insurer and the policyholder.
In the vast majority of cases, the insurance on behalf of another person is a contract to the benefit of third parties, where the policyholder does not stand as a proxy to the insured, who is not a party to the insurance contract and is a mere third beneficiary party.
In those cases, the contract produces all its effects regardless of the insured’s acceptance or ratification.
However, an arbitration agreement inserted in an insurance contract only binds the signatory parties to that contract and does not oblige the insured to resort to arbitration–whom is granted with an autonomous and “ex novo” right arising out of the insurance contract–except if the insured may consent to that arbitration agreement either in an express or implied fashion.