Do you suddenly receive a message from your insurer that your coverage has been suspended ? This can have major consequences: damage is no longer compensated, your insurance is temporarily ‘on hold’ and you are at financial risk. But an insurer cannot suspend just like that. In many cases, this is unlawful and you can object.
At Arslan Advocaten we assist clients with wrongfully suspended or terminated insurances. We test whether the measure is justified, file objections and if possible recover costs from the insurer – so our assistance can be free for you.
What does the suspension of coverage mean?
Suspension means that your insurance still exists, but that the insurer temporarily does not provide coverage. Any damage during this period will not be refunded. Often this is used when the insurer:
- doubts the accuracy of your damage claim,
- suspects that there is perfidiousness or deception,
- thinks you have not supplied information, or
- unpaid premium.
The suspension is intended as a temporary means, but it is often using too quickly – and sometimes wrongly.
When can an insurer suspend coverage?
An insurer may only suspend the coverage if there is a clear basis for it. This is usually stated in the policy conditions and in the law (article 6:262 BW).
But, there are important restrictions:
- Suspension is only allowed if there is a justifiable interest for the insurer.
- The measure must be temporary and proportional.
- The insurer must inform and motivate you in advance why the coverage is put on hold.
- You must have the opportunity to respond or still provide the requested information.
If the insurer does not comply, the suspension is unlawful and you can demand that the coverage be restored immediately.
Common reasons for unjust suspension
- Insurer requests disproportional amounts of information or proof.
- Suspension after unfounded suspicion of scams.
- No hearing applied.
- No clear end date for suspension.
- Violation of the obligation to inform customers.
A suspicion of scams, for example, should not automatically lead to suspension or exclusion of the coverage. A proper investigation should be made with evidence. If this is not the case, you can claim damages and – if necessary – request removal of any EVR-registration.
What can you do in case of suspension of coverage?
1. Request written justification
The insurer must explain in writing why your coverage has been suspended. Check if the given reason is correct and if it is mentioned in the policy.
2. File an objection
You can object to the suspension. Explain why the measure is wrong or disproportional. Refer to your policy and say that you comply with your obligations.
3. Request immediate resumption
If the insurer doesn’t have a valid reason, you can demand that the coverage be immediately restored. Sometimes this is necessary to prevent further damage.
4. File a complaint with the KiFid
If you can’t solve the problem with the insurer, you can file a complaint with KiFid.. The Complaints Institute for Financial Services can decide that the suspension is unjust and that the coverage should be resumed.
5. Start procedure
If even that does not lead to result, you can enforce via court that the insurance is valid again and that the damage is compensated. We can fully represent you in this.
What can Arslan Advocaten do for you?
- We assess whether the suspension is legally permitted.
- We file an objection to the insurer.
- We initiate a KiFid-procedure or legal procedure if needed.
- We recover our costs from the insurer, so our help can be free for you.
Has your insurance been wrongfully suspended?
Contact Arslan Advocaten.
We ensure your coverage is restored and that your damage is yet compensated.
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