Insurance: Termination at any time will be extended soon

This is a real breakthrough for consumers. In a notice issued on Thursday, May 5, the Financial Sector Advisory Committee (FSCC) ruled in favor of harmonizing the terms of termination of insurance contracts.

“Insurance is often lost in different cases of termination and does not include in those conditions and at that time they can terminate their insurance contracts”, explained the consultation body in a statement. Faced with this finding by the Insurance Ombudsman last September, the Committee decided to set up a working group to reflect on a possible harmonization of termination deadlines. After five meetings between November 2021 and April 2022, the Committee unanimously adopted an opinion which may be implemented by insurers by 1 July 2023.

Simplifying the termination of insurance contracts

I propose “All individual or group insurance contracts, covering persons insured physical activities outside their professional activities, can be terminated at any time after the first year of subscription “. This legislation, already in force for multi-risk home insurance, car insurance and health insurance, could therefore be extended to animal insurance, legal protection insurance contracts and life accident insurance (GAV).

On the other hand, this termination at any time does not concern the insurance (disability / disability / death) and dependency insurance contracts, the seasonal contracts (school contracts, hunting contracts), as well as the contracts covering the craft and the equipment. motorized and non-motorized personal travel.

As a result of this harmonization, the Committee proposes that, for all contracts that can be terminated at all times after a description, the information obligations under the Chatel Act be removed in order to « simplify legislation and thus the information to be given to policyholders ». As a reminder, since 2005, it has been obligating insurers to inform their customers of the possibility of not renewing their annual contract. From now on, the insurer will simply have to inform the insured each year of the annual amount of premiums and remind him that his contract can be terminated at any time.

Extension of the term of waiver of affinity contracts to 30 islands

Finally, the Committee looked at the terms of termination of affinity insurance contracts, more commonly referred to as “warranty extensions”. He noted that some offered a free commercial in the first month, which could lead some policyholders to find themselves unknowingly engaged as they allowed the 14-day withdrawal period to pass. Thus, the advisory body considered that this period should be extended to 30 days from the subscription or the end of the free period. Cancellations of type or travel and guarantees of less than 1 month are not covered by this measure.

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