Chatel law, Hamon law and insurance: how does it work and for which contracts?

When you want to terminate a contract, no matter what it is, you sometimes come across complex legislation. In some cases the termination is as easy as pie, but in others you have to respect quite long notice periods… Let’s take stock of the applicable laws for your changes in insurance contracts, especially the Chatel Law and the Hamon Law.

Hamon law and termination of insurance contract

The Consumer Act of 17. of March 2014, known as the “Hamon” law, entered into force on 1 January 2015. It is part of the Consumer Law and since this date allows any insured person who has signed a contract per tacit renewal to terminate it at the end of the legal minimum period of one year, without financial penalties and without having to justify yourself, by sending a registered letter with acknowledgment of receipt.

These are terminations of car and motorcycle insurance contracts, multi-risk home insurance and mortgage loans. And since 1 December 2020, it is possible to terminate your supplementary health insurance agreement by invoking the Hamon Act.

The latter also changed the legal cancellation period: for contracts signed on June 14, 2014, the cancellation period is 14 days instead of 7 previously.

I’m changing car insurance

How to terminate a contract under the Hamon Act?

To cancel a contract under the Hamon Law, the process is very simple: contact the insurance company you have chosen after various comparisons and send them the information related to your old contract (policy number, contract number, your contact information and the insurance company’s information). ). You must send a certain number of documents to change car insurance.

This new insurer is responsible for sending the cancellation request to your previous insurer and makes a request to forward your disclosure statement. Your old contract will be terminated one month later.

In case of overpayment, it will be refunded a maximum of 30 days later. Your new contract takes over from the old one to give you the cover you need under the chosen insurance plan. A business well done, right?

Insurance: What is Chatel Law?

The Chatel Law of 3. January 2008 on the development of competition for the benefit of consumers was published in the Official Journal of the European Union on 4 January. It obliges your insurance company to inform you of the notice period for terminating certain contracts upon expiry.

This information must then be in your hands with your notice of expiry at least 15 days before the expiry of the deadline. Even overwhelmed by daily tasks, it is thus possible, thanks to this reminder, to react at the right time and proceed with a request for termination before tacitly renewing your contract if you wish to change it.

The Chatel Act concerns contracts that automatically renew each year, contracts insuring individuals outside their professional activities and non-life insurance. If your insurer misses the deadline and sends you the expiry notice less than 15 days before the date of the notice (or doesn’t send it to you at all!), you can cancel your contract within 20 days.

Compare with switching insurance

To change insurance, nothing better than to make the comparison according to the deadlines set by law. Online insurance comparators help you do a quick simulation and choose the right price and the right guarantees. You will be accompanied by insurance experts who can assist you with the termination process.

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