(1) The policyholder must, on the occurrence of the insured event, ensure that the loss is avoided or minimised wherever possible.
(2) The policyholder must follow the instructions of the insurer, where reasonable, and obtain instructions, circumstances permitting. If several insurers involved in the contract of insurance issue different instructions, the policyholder must act at his or her own proper discretion.
(3) In the event of the breach of an incidental obligation under subsections (1) and (2), the insurer is not obliged to effect payment if the policyholder intentionally breached the incidental obligation. In the event of a grossly negligent breach, the insurer is entitled to reduce the benefits payable commensurate with the severity of the policyholder’s fault; the burden of proof that there was no gross negligence is on the policyholder.
(4) In derogation from subsection (3), the insurer is liable insofar as the breach of the incidental obligation is the cause neither of the establishment of the occurrence of the insured event, nor of the establishment of the extent of the liability. Sentence 1 does not apply if the policyholder has fraudulently breached the obligation.