In principle, an insurance contract is a fixed-term contract concluded for one year at a time. On that basis, one cannot simply terminate the contract given that there is no such thing as a general right to terminate.
Nevertheless, in certain cases, the insurer can start terminating the contract, as long as a number of conditions are met. We go over the cases in this Wanted Wiki.
1. Termination due to expiry date
By law, an insurance contract can never exceed one year, but it is tacitly renewed each time if the policyholder or the insurer does not oppose it. Thus, following the expiry date of the contract, the insurer may well choose not to renew the contract. Thus, in this way, the insurance company can also terminate the contract without there being a genuine default (art. 85, §1 Insurance Act).
2. Termination after a claim
Where the contract provides that both the insurer and the policyholder may cancel the contract after a claim has occurred, the insurer may unilaterally decide to cancel the contract even after one small claim. Admittedly, the termination must be done no later than one month after the payment or refusal to provide cover. The termination will then take effect after at least three months have elapsed from the day after the notification, the acknowledgement of receipt or the day after the registered letter was sent (art. 86, §1, paragraph 1-2 Insurance Act).
So it may well be that the insurer terminates the insurance contract in response to one claim. Provided the insurer respects the deadline, it can still cancel the contract after it has already provided cover for a specific claim.
The insurer may also choose to terminate the contract in case the policyholder fails to comply with the obligations applicable after the claim or tries to mislead the insurer. This may be the case, for example, if the policyholder has filed a false report of a claim. In such cases, the insurer can terminate as soon as it files a complaint with a civil action before an examining magistrate or summonses the policyholder to appear in court for specific crimes. The termination takes effect at the earliest one month from the day following the service, the day following the date of the acknowledgement of receipt or, in the case of a registered letter, the day following its delivery (art. 86, §1, paragraph 3 Insurance Act).
3. Termination after non-payment of premium
If the policyholder has not paid his premium by the due date, this may give grounds for suspension of coverage or even termination of the contract (art. 69 Insurance Act).
However, in order to suspend/cancell the contract, the insurer must fulfil some obligations. For instance, it will have to give notice of default to the policyholder. This can be done by registered letter or bailiff's writ. The notice of default must contain the period within which the premium has to be paid, without this period being shorter than 15 days. It must also contain a reminder of the premium due date and the premium amount, as well as the consequences of non-payment within the set term (art. 70 Insurance Act).
The suspension/termination shall be effective only after the expiry of the period stated in the notice of default (art. 71, paragraph 1 Insurance Act).
Does the insurer want to cancel your insurance contract?
If so, be sure to contact the lawyers at Wanted Law. They will immediately be able to provide you with a lot of information over the phone so that you are already further assisted.