New clients who call us or contact us via the web ask us, when they want to bring their insurance policies to our brokerage, how to cancel their current policies. We believe that it is very useful to know this information, since sometimes there are people who are surprised when their company does not cancel the policy simply by returning the receipt.
What the Insurance Contract Law says
Let’s see what the Law says: Article 22 point two of Law 50/1980, of October 8, 1980, on Insurance Contracts states (after the reform that came into force on January 1, 2016).
The parties may oppose the extension of the contract by written notice to the other party, given at least one month before the end of the current insurance period when it is the policyholder who opposes the extension, and two months when it is the insurer
We already know in which period we must give notice, but who must give notice. It is always the policyholder who assumes the obligation to pay the premium, so it is he who must sign the cancellation letter. In case it is the insurance of an individual, this does not entail problems, but what if it is a company? Then, the signatory must be a person with powers of attorney granted by the company for this type of transactions.
Once we have the signed document, what else should we attach to this notification? Always some document that accredits the identity of the signatory, as well as, in the case of a company: CIF of the policyholder, and identification of the signatory.
Of course, not all companies are equally demanding in the documentation requirements, however, we collect the strictest information in case we “bump into” any of the most serious ones in this aspect.
Cancellation media
Knowing what to contribute, how do we get it to the company? There are many ways to do it, but we will tell you how we do it:
- For those policies that are more compromised: the burofax is the most legitimate solution of all.
- E-mail is the most practical. Keeping a copy of the sending and, if you can, collecting proof of receipt from the addressee, would be more than enough to prove the notification.
- Fax is still a method that is used
- Some companies can process the cancellation through the website or even by telephone by proving the holder’s identity.
- In person at the office of the company, mediator or entity, always keeping a sealed copy with the date of receipt or delivery.
Defenses against the insurance company
But, what if I follow all the steps correctly, and the company continues to bill me, what should I do?
This is more frequent than it may seem. When faced with these changes, it is important to make sure that we do not receive two bills (one from the previous company and the other from the new one). If this happens to us, the most practical thing to do is to contact the old company and provide proof of cancellation together with the return of the receipt; this is usually more than enough (that’s all it takes…).
All companies have an Insured’s Defense Service that usually handles this type of claim, and we recommend that you contact it in these cases.
Our brokerage usually manages the cancellations of the clients so that they do not have to be involved in anything, and avoid these problems. As we have communicated thousands of cancellations over the years, we know what form the letter should take and to which mailboxes to send it.
If I don’t know the company’s contact information, how can I get it?
Our advice is to go to the company’s website, and at the bottom of the page, in the section on “Legal Notice” there are usually contact details, address, email, fax… so that should be enough to notify the cancellation.
If you think that the advantages of an Insurance Brokerage can be useful for you, contact us. Forget about worrying about your insurance and delegate that burden to us, we know the sector, and we will offer you the best insurances in the market.
