On a monthly basis, when the companies generate the renewal of our clients’ insurance policies, they inform us of those policies that they are not interested in continuing. Today we will talk about what we do and what the companies do when they work without a broker, directly with the client.
The Insurance Contract Law is clear
Law 50/1980 regulates everything related to insurance policies, the obligations of the companies and the rights of the client. Article 22 talks about the deadlines to cancel a policy, both by the customer and by the company (and that changed in 2016, shortening the deadline for customer communication).
Art. 22.2 Law 50/1980:
“The parties may oppose the extension of the contract by written notice to the other party, given at least one month prior to the end of the current insurance period when the party opposing the extension is the policyholder, and two months when it is the insurer.”
In this article from a few months ago, we talked about how to cancel an insurance policy by a client: what means to use for the record, deadlines, etc.
How some insurance companies deal with their customers
For some years now, we have been finding that some insurers do not respect the law on the point we were looking at earlier. This two-month period, which must be absolutely clear, without any room for doubt, is not complied with in many cases.
The causes? They could be:
- A claim that the client may have had in the last year.
- A reconsideration of the company’s risk policy, leading to the cancellation of portfolio policies for X reasons.
- …
The problem is not that the company wants to cancel a policy (although sometimes they do it too easily); it is that they do not respect the legal deadlines to warn the policyholder. Too many times they do it a few days in advance or they do not even warn the policyholder, and the client has 2 alternatives:
- That, due to ignorance of the law, you must seek insurance within a few days to replace that policy.
- That, since he does not know that he does not have insurance, he circulates with the car without policy or does not have insurance in the house, etc. etc. etc. An enormous risk.
The after-sales service of an Insurance Brokerage Firm
All those clients who have a broker or, at least, our policyholders enjoy a very clear protocol when a company notifies us of the “write-off” (as they call it) or cancellation of a policy:
- We talked to the company to try to fight against the cancellation of the insurance (as long as the economic conditions are kept close to the previous year’s price).
- We notify the client, if we have not been able to retain the policy, and inform him of competitive alternatives to replace the insurance that is cancelled by the insurer.
We always say it: having an Insurance Brokerage looking after your interests is not silly. We would love for our clients to be able to see how we work and how we talk to the companies fighting for the interests of our policyholders (in the event of a claim, renewal, etc.). All of this, without them having to pay more for their insurance, but rather the opposite, and always checking that the policy has the correct guarantees.
Do not hesitate and contact us now. We will review your policies without obligation, and we will find the best insurance for you and your family.
