The insurer can only reserve the right to cancel the contract after a claim has been made, if itpaid compensation or will have to pay it in favour of the aggrieved parties, with the exception of payments made on the basis of the compensation system for weak users.
Notice of the cancellation following a claim must be given no later than one month after payment or refusal of payment of the compensation. It puts into effect at the earliest three months from the date of submission, in order to allow the policyholder to find alternative cover.
However, the cancellation may put into effect one month after the date of notification:
- if the policyholder, the insured party or the beneficiary failed to fulfil any of the obligations arising from the insurance with intent to deceive the insurer;
- and if the insurer filed a complaint against one of these persons before the examining magistrate, or brought it before a court of law on the basis of articles of the Criminal Code dealing with forgery, fraud or deception.
The insurer is liable to pay compensation for the damage resulting from such cancellation:
- if it withdrew from the action;
- if the public action resulted in:
- a dismissal;
- or an acquittal.
Unless otherwise agreed - if the insurer undertakes to provide various cover under the same contract - the cancellation of specific cover does not affect the contract as a whole, but in this case, the policyholder may cancel the contract as a whole.