Judicial Assessment of Coverage Limits in Insurance Contracts

Abstract

This article examines the tension between insurance policy coverage limits and the principle of full compensation for damages under Argentine law in a context of persistent inflation. It argues that the strict nominal application of coverage limits, even when supplemented by interest, may produce unreasonable outcomes that undermine both the economic purpose of the insurance contract and the effective protection of injured parties. Drawing on the case law of the Supreme Court and recent judicial decisions, particularly those of the Río Negro’s Court, the article proposes a model of judicial review based on the reasonableness of the compensatory outcome.