It often happens that someone has the need or the will to close the relationship with their business insurance company, on this topic there is often a great confusion between cancellation and withdrawal. Let’s try to clarify.
Difference between cancellation and withdrawal
First of all, let’s clarify the terminology: CANCEL and WITHDRAW a contract, in fact, are not synonymous, even if in both cases we refer to a contractual termination with all its constraints.
Legally speaking, however, these are two different situations: specifically, making a cancellation means preventing the contract from being renewed when it expires, communicating it within the established terms; while completing a withdrawal indicates the extinction of the same before its natural expiration.
Having said this, it should be clarified how the current legal system allows the exercise of the right of withdrawal from business insurance contracts .
Right of withdrawal (or right of withdrawal)
For all purchases made at a distance , i.e. whenever a contract is stipulated that provides for the sale of goods or services outside a physical point of sale, there is a unilateral right of withdrawal (or rethinking) without the obligation to communicate the reason.
And without penalties, which can be exercised by registered letter with return receipt up to 14 days from the date of signing the contract, or, if it does not coincide with the latter, from the date on which the consumer receives the information file on the product purchased.
Some financial services stipulated at a distance, such as business insurance policies , also fall under the legislation on distance selling (Legislative Decree 19/08/2005 n ° 190 which transposed the European Directive 2002/65 / EC)of Civil Liability (including RCA) and life business insurance , provided they are purchased by phone or online.
In the case of individual life business insurance policies, the policyholder can exercise the right of withdrawal within 30 days from the moment in which he has received notice of the termination of the contract, as regulated by Article 177 of the Business insurance Code.
This longer period of time than the others is due to the greater complexity of this type of business insurance.
When the right of withdrawal is not applicable
In order for the right of withdrawal to be exercisable by the end customer, the business insurance contracts must not have been stipulated in the branch, at a physical agency, and the policy must have a total duration greater than six months : in the case, therefore, of short-term business insurance validity, such as travel policies, or temporary car or motorcycle policies with a duration of less than 180 days, this procedure is not feasible.
However, various Italian travel business insurances also provide for a right of withdrawal for the conditions of which it is good to read the policy carefully before signing it.
Furthermore, the right to reconsider is precluded in the event of a claim occurring within 14 days from the signing of the rca business insurance contract
Other cases of business insurance policy withdrawal
Business insurance withdrawal (rca policy)
From 1 January 2013 the tacit renewal for TPL cars and motorcycles was abolished, therefore, to close this type of business insurance, just wait for the natural expiration, do not make the payment for the following year and request the certificate of risk (necessary for the subsequent policy).
It is highly inadvisable to withdraw from the business insurance first as the payment signed is for the entire annuity, the possible half-yearly deadline is not related to the contract but to the second payment installment which must always be paid.
Furthermore, the risk certificate matures during the 12 months of business insurance and the company cannot issue it if these are not completed. In the absence of this certificate the new company is obliged to insure the vehicle inbonus-malus category 18 , the most expensive.
Early withdrawal with reimbursement relating to the period already paid can be requested ONLY in the event of a change in the condition of the vehicle (sale, destruction, definitive export abroad, termination of public circulation, demolition) or due to irregular behavior of the business insurance company (increase of the premium higher than the programmed inflation rate, failure to send the risk certificate within the time frame). Both of the above cases must be duly certified.
Withdrawal of life business insurance policies, accidents, etc.
Annual policies without tacit renewal: they expire after 15 days from the end of the expiry date, without the need to send a request for cancellation
Annual policies with tacit renewal : you must send a request for cancellation by registered letter with return receipt at least 60 days before the expiry of the contract, obviously you must first have paid the annual premium.
Multi-year policies stipulated before April 3, 2007 : it is possible to request annual withdrawal (by registered letter with return receipt sent at least 60 days before the annual expiry) after having accrued at least 3 years from signing. This category of policies basically no longer exists.
Multi-year policies signed between 3 April 2007 and 14 August 2009 : they can be canceled annually with 60 days’ notice
Multi-year policies stipulated after 15 August 2009 : the companies are obliged to make a discount on the ordinary rate which must be specified. They can have a duration of less than or equal to 5 years, they cannot be extinguished before their natural expiration, or more than 5 years, in which the withdrawal can be exercised annually after having accrued 5 years with 60 days notice.
For any doubts or clarifications regarding this matter, do not hesitate to contact us, our consultants will be willing to give you all the necessary information.
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