Did you suddenly receive notice that your insurance is being terminated? That’s a shock. Still, an insurer is not allowed to simply cancel your policy. The law and your policy terms determine exactly when that is permitted. In many cases a termination is unjustified or disproportionate. You can take action against that.
At Arslan Advocaten we help clients who unjustly lose their insurance. We review the reason, file an objection, and recover our costs from the insurer where possible – so that our assistance can be free of charge to you.
What does terminating a policy mean?
Upon termination, your coverage. From that moment, the insurer will no longer cover any losses. That can be significant, especially with a compulsory policy such as your third-party liability car insurance (WA) or with a home contents insurance you rely on daily.
When may the insurer terminate your policy?
An insurer may only terminate your policy if there is a legal or contractual reason for this. For example:
- Premium arrears: you have not paid despite reminders.
- Fraud or misrepresentation: the insurer may terminate if it turns out that you knowingly provided incorrect information.
- Change in risk: after moving or with a repeated claims history, a different risk assessment may result.
- End of term: after the first contract period, an insurance policy can usually be canceled monthly.
Even then, the insurer must adhere to reasonableness and fairness. Without a clear reason or proper hearing of both sides, the termination is often invalid.
Termination after fraud investigation
After a fraud investigation, insurers often terminate a policy. You will then be told that your claim was incorrect or that information is inaccurate. Sometimes this is even followed by a registration in the External Referral Register (EVR). However, in many cases the suspicion is not well substantiated. In that case, the termination can be reversed.
What can you do in case of an unjustified termination?
1. Request the reason in writing
The insurer must explain why your insurance has been terminated. Request that explanation and keep the letter or email safe.
2. Check your policy terms and conditions
Check whether the stated reason actually appears in your terms. If that ground is missing, the termination is invalid.
3. Lodge an objection
Submit an objection as soon as possible. Explain why the termination is not justified and refer to your policy and the applicable rules.
4. Submit a complaint to KiFiD
Are you unable to resolve it together? Then you can file a complaint with the Financial Services Complaints Institute (KiFiD). The KiFiD can determine that your insurance has been wrongfully terminated and that the coverage must be reinstated.
5. Start legal proceedings
If the insurer persists, you can enforce through the courts that your policy is reinstated or that you receive compensation. Our lawyers fully guide you through this process.
What does Arslan Advocaten do for you?
- We assess whether the termination is legally valid.
- We file an objection or complaint with the insurer or the KiFiD.
- We initiate proceedings in court if necessary.
- We recover our costs from the insurer, so our assistance can be free of charge to you.
Has your insurance been wrongfully terminated?
Get in touch with Arslan Advocaten. We ensure that your coverage is restored and that your rights are protected.
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