Withdrawal from the insurance contract - how to do it? When it’s possible?

Regardless of whether the client wants to terminate the contract of life insurance, vehicle insurance, accident insurance or property insurance - it can be terminated early. He is not obliged to give the reason for his decision - perhaps the purchase was rash, the client found a better offer or stated that he did not need the policy. Cancellation of the insurance contract is possible under certain conditions that must be met in order to terminate cooperation with the insurer. So, in what situations is this acceptable?

When can the insurance contract be terminated?

The main condition that must be met in order to be able to withdraw from the insurance contract is the observance of the deadline specified in the legal regulations. In the Civil Code, and more precisely in Art. 812 we find the provision that every natural person has the right to withdraw from the insurance contract. However, it is necessary to adapt to the timing when this activity can be carried out and pay attention to the type of policy purchased. Termination of the insurance contract is possible within:

• 30 days from the date of its signing - in the case of individuals,

• 7 days from the date of its conclusion - for entrepreneurs.

The condition is the purchase of a policy for a period of more than six months, i.е. min. 6 months.

After exceeding the above deadlines, withdrawal from the policy agreement will not be possible and it will not be terminated. The premium will be returned minus the costs charged for the duration of the policy.

However, if the insurer did not notify the client of the possibility of exercising this right - before the conclusion of the contract - 30 days will be counted from the day when the consumer became aware of this fact.

In the Civil Code Art. 830 you will find provisions for auto insurance, multi-risk home insurance, supplemental health insurance, and Affinity Insurance. In their case, it is possible to terminate the contract at any time of its validity, subject to the terms specified in the contract.

Withdrawal from the distance insurance contract

Each distance purchase policy may be terminated within 30 days of its conclusion. Remote purchase refers to the purchase of insurance through the Internet or by phone. In this case, it is also possible to refuse the concluded civil liability policy agreement, which is unacceptable if it is signed at a stationary point.

How to cancel an insurance contract?

Therefore, let’s answer the key question, namely: how to terminate the insurance contract? First of all, do not forget to notify your insurer of this intention. This can be done at least one month before the deadline by sending a corresponding application to the insurance company. It is acceptable to use one of the possible forms of notification of the insurer:

• personally - visiting the object of the insurer or multi-agent,
• by letter - by sending the termination of the insurance contract (the date of sending the letter is taken into account),
• online - by e-mail or through the form on the website of the insurer,
• other means of communication - if the insurer used this form of communication with the client,
• in other waysspecified in the insurance contract.

The insurance company is obliged to notify the customer in writing of the acceptance of the cancellation.

Sample cancellation of an insurance contract

The application for withdrawal from the insurance contract must contain the following information:

• the name and address of the insurance company,

• reference to the Civil Code, art. 812 or art. 40 sec. 2 of the Act of June 24, 2014 on the rights of consumers in case of purchasing a policy at a distance,

• name and surname, address and PESEL number of the insured,

• insurance number,

• date of conclusion of the policy,

• the place and date of filing the application for termination of the contract,

• legible signature.

The application for withdrawal from the vehicle insurance contract must additionally indicate the model and make of the vehicle, as well as its registration number.

An example of an insurance contract cancellation can be found below.

Termination of the third party liability insurance contract

The situation is different in the case of a desire to abandon OSAGO, i.e. at the point of insurance of this insurance company or at the multi-agency branch. Then the consumer cannot refuse the acquired motor third party liability insurance. Different rules apply to a policy purchased online or over the phone - here cancellation is possible within 30 days from the date of purchase. Clients often decide to terminate a contract just before it ends, for example, because they found a much cheaper offer from competitors. You can then cancel your third party liability insurance contract up to one day before the end of the coverage period.

It should be remembered that compulsory insurance, i.e. third party liability insurance, home insurance and health insurance, must be purchased from another insurer if the client wishes to terminate the current policy. The application is then submitted by the new insurer on behalf of the client with continuity of protection.