Loi Chatel

[Richard and Alex]

I know this has been mentioned on the forum before but we have been given slightly different advice by a french broker regarding our house insurance.  He insists the new law allows you to cancel the policy at any time provided you send the relevant letter by recorded post.  Our insurer CA/Pacifica say this is not so and once we have renewed that is it for another year.  The brokers response in his best English was "thats a load of rubbish!".

We are investigating further but any comments would be useful

Thanks

 

Richard

[BJSLIV]

The Loi Casel simply made it easier to change insurance at the time of the annual renewal.

If you have already renewed and your circumstances change, eg sale of house, then you can cancel during the year and will get a proportion of your money back. The cancelation will take effect a month after they receive the notification.You will need to attach proof of the change.

If you simply want to cancel  because you want a new insurer, or on a whim ,then it will be up to the insurer to decide if they will cancel the contract, and also on what terms. Cancelation penalties admin charges will be applied.

[Richard and Alex]

Thanks for the advice which seems to be pretty much what CA are telling us.  Must be some confusion from the french broker.  Our renewal has passed now so will start earlier next year!

[Richard and Alex]

For the benefit of anyone else confused by the new law this is the response we received from CA;

Most insurers in France ask that you give them two months notice prior to your renewal date if you wish to cancel the policy. Pacifica will however except a written confirmation if it is received within one month of this date.

 

The law Chatel stipulates that insurance companies must write to their client to inform them of the renewal date and the amount due for the coming year. If this letter is not sent by the insurer in advance of the usual two month delay, the client retains the right to cancel the policy within 20 days of the date of sending of the renewal letter. Therefore, in your particular case, the renewal letter was sent to you on the 05/12/05. We must have received your signed written instruction on or before the 25/12/05 to be able to cancel your policy.

 

If you have not followed the above procedure and have started another policy elsewhere, the new insurer will be obliged to cancel the policy.