Table of Contents
In insurance, terminating a contract is a very broad subject: in addition to ordinary termination by one of the contracting parties, there are numerous special situations in which insurance can be terminated. Examples of these include termination
- after a claim
- due to non-payment
- if the risk disappears
- when the parties are not in agreement after modification of the risk
- after notifying the policyholder of a price increase
- …
On this page, we will discuss ordinary termination. This means that one of the contracting parties indicates that it wishes to terminate the insurance contract on the annual expiry date.
Basically, the law stipulates that, with a few exceptions, the duration of the insurance contract cannot exceed one year and that the insurance contract will be tacitly renewed for one year each time.
How Can You Terminate Your Insurance Contract?
There are several ways to terminate your insurance contract (in accordance with Article 84 of the Belgian Insurance Act of 4 April 2014):
- by registered letter
- by means of a bailiff's writ
- by personally delivering a termination letter and requesting proof of receipt
- by registered e-mail
- via a digital environment belonging to the insurer or insurance intermediary, provided that the termination notice is signed electronically.
The insurance will then end on the expiry date of the contract. Until then, the insurer must provide coverage for claims occurring during the period between the dispatch, service or issuance of the notice of termination and the expiry date of the contract.
What Notice Periods Apply When Terminating Your Insurance Contract?
Two different situations can apply:
- Termination during the first year of the contract (that is, before the agreement has been tacitly renewed)
- Termination after the contract has already been tacitly renewed.
1. Termination Before the First Annual Expiry date (Article 85, of the Insurance Act of 4 April 2014)
By the policyholder: If you do not wish to tacitly renew the contract (in other words, if you wish to terminate the insurance contract on its annual expiry date), you must notify your insurer at least two months before the expiry date of the contract that you oppose its tacit renewal.
By the insurer: The insurer can oppose the tacit renewal of the contract, but your insurer must inform you of this at least three months before the expiry date of the contract.
2. Termination After the First Tacit Renewal (Article 85/1, paragraphs 1 and 2 of the Insurance Act of 4 April 2014)
Tacitly renewable contracts in the non-life sector entered into by consumers (see Art. I.1, 2° of the Belgian Code of Economic Law) or tacitly renewed as of 1 October 2024, may be terminated free of charge at any time after one year.
A tacitly renewable non-life insurance contract that is concluded by the consumer before 1 October 2024 and renewed tacitly from 1 October 2024 can be terminated at any time and without charge.
In both cases, the termination of the contract will then take effect two months after the issuance (or, where applicable, the electronic signature) of the termination letter.
Attention! For such contracts concluded before 1 October 2024 and which have not yet been tacitly renewed since then, the old termination rules still apply. If you do not wish to renew tacitly, (in other words, if you wish to terminate your insurance contract at the annual due date,) you must inform your insurer at least three months before the anniversary date of the contract that you oppose the tacit renewal of the contract (old art. 85, § 1, law 4 April 2014 relating to insurance).
In the case of contracts from other sectors, as well as contracts not taken out in the capacity of a consumer, the rule described above under 1) continues to apply, namely that objection to tacit renewal must be notified at least two months before the expiry date of the contract.
Termination by Your New Insurer/Insurance Intermediary
As a policyholder who wants to cancel an insurance contract for the purpose of taking out another insurance contract, you can ask that new insurer or the insurance intermediary to carry out the cancellation formalities for you (Article 85/1, § 3, Act of 4 April on insurance).
It is important that the insurer or insurance intermediary has the information that is necessary to complete the cancellation for you. Contact your insurer or insurance intermediary about this.
Your insurer or insurance intermediary will ensure that the new insurance contract takes effect no later than on the expiry date of the notice period.