The Hamon law will be generalized. The Financial Sector Advisory Committee (CCSF) announced on Thursday 5 May that it had reached a unanimous agreement in favor of harmonizing the rules for terminating insurance contracts. Animal insurance, life accident guarantees (GAV) as well as legal protection guarantees may be interrupted at any time after the first year of subscription. A model already in force for auto, home or health contracts.
“The insured often get lost in the different cases of termination and do not understand under what conditions and when they can terminate their insurance contracts”, justified the CCSF. “This myriad of small contracts, often sold by telephone canvassing, does not cost much, but households often forget that they have subscribed to them and find it difficult to get rid of them”, adds one of the committee members. This reform will take place by July 1, 2023 on all contracts, including those already in force.
40 million contracts affected
Among these contracts less known to the general public, we find animal insurance but also life accident guarantees (GAV) or legal protection guarantees. The latter two represent nearly 40 million contracts in France. Proof of the usefulness of the reform, the GAV can currently be terminated only if the registered letter is sent at least two months before the annual due date. And still it is necessary to know the latter, which does not necessarily correspond to the anniversary date of its taking effect.
On the other hand, certain contracts are excluded from the system. This is the case of provident and dependency insurance, which guarantees an annuity, but also seasonal contracts such as school insurance or hunting insurance. As for contracts related to mobility devices such as electric scooters, they have also been dismissed.
That the owners are reassured, the initiative of the CCSF does not affect the Lemoine law, voted in February by the parliamentarians, allowing to terminate at any time its loan insurance contract.