3-click Cancellation of Insurance Contracts
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From 1er June 2023, online termination of insurance contracts that can be concluded electronically will be possible in just 3 clicks. This new regulation aims to promote competition and facilitate the termination/cancellation of insurance contracts in France. It will apply to future contracts but also to contracts in progress at that date.
Pursuant to the Law of 16 August 2022, it will be possible for a consumer to cancel online a contract that’s been concluded with a French broker or an insurance company.
Online termination will be possible if, on the day of termination, the contract can be concluded electronically. The purpose of the “3-click” termination is to simplify the terminations/cancellations to allow consumers to move towards other contracts or suppliers that are more financially advantageous.
This provision will apply to 1er June 2023 for future and current contracts. It will concern insurance contracts covering private individuals outside of their professional activities. Termination “in 3 clicks” will extend to many other services (phones, electricity, ...) soon, so watch out for updates from your utility suppliers.
Obligations of Insurance Professionals in France
For the termination (or cancellation) of the online contract to be possible, the insurer must provide the consumer with permanent, direct, and easily accessible functionality allowing them to notify their intention to terminate or cancel the policy. This functionality will be called “cancel your contract”, a similar formula may be used.
Once the service provider has received notification of termination, he must inform and confirm same to its client. He will then inform the client, within a reasonable time, of the date on which the contract will end and the effects of the termination.
Cancellation Details to be Supplied by the Insured
The possibility of terminating online also concerns insurance contracts covering natural persons outside their professional activities. This concerns contracts that can be concluded online with insurance companies, provident institutions, and mutual insurance companies.
The insured must provide the following details in the “terminate your contract” functionality:
- surname and first name (for a natural person/private individual), company name or corporate name (for a legal person)
- means of contact (telephone number, email, etc.) allowing the insurer to confirm receipt of the notification of termination/cancellation
- reference of the contract concerned (a contract number for example);
- reason for termination/cancellation
- date of the event giving rise to termination/cancellation.
After providing the above information, a summary will be presented to the insured. The policy holder will then confirm its request by clicking on the legible mention “confirm my request for termination”, a similar formula may be used.
As a reminder, since January 1st, 2023, a person who has taken out an insurance contract for non-professional purposes in addition to goods or services rendered may waive this contract, without charge or penalty, if there is no has not been fully performed or that the insured has not invoked any guarantee. This waiver must be made within 30 days (instead of 14 days) from the conclusion of the contract.
Source: For more information consult the Service Public webpage that features an English version.
Looking for an Alternative Insurance Cover?
If you’re shopping online for a new supplier or a better service for personal or business use, make sure you visit our insurance pages. Our insurance experts are based in France and specialise in providing cover for expats and English-speaking families working and living in France. All correspondence is made in English, and they offer incentives for multiple subscriptions.
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