Did you suddenly receive a message that your insurance is being terminated? That is shocking. However, an insurer cannot just cancel your policy. The law and your policy conditions precisely determine when this is allowed. In many cases, a termination is unjustified or too harsh. Then you can take action against it.
At Arslan Advocaten we assist clients who unjustly lose their insurance. We check the reason, lodge an objection and recover our costs where possible from the insurer – so our help can be free for you.
What does termination of a policy mean?
Upon termination, your coverage stops. From that moment, the insurer will no longer compensate for any damage. This can be drastic, especially for compulsory insurance such as your WA car insurance or a home insurance policy that you rely on every day.
When may the insurer terminate your policy?
An insurer may only terminate your policy if there is a legal or contractual reason for this. Examples include:
- Outstanding premium: Despite reminders, you did not pay.
- Fraud or deception: The insurer can cancel if it turns out that you have deliberately provided incorrect information.
- Change of risk: After moving or repeated damage history, a different risk assessment may arise.
- End of the term: After the first contract period, an insurance policy can usually be canceled monthly.
Even then, the insurer must observe reasonableness and fairness. Without a clear reason or due process, 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 not correct. Sometimes even a registration in the External Referral Register (EVR) follows. In many cases, however, the suspicion is not well substantiated. In that case, the termination can be reversed.
What can you do about 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 well.
2. Check your policy conditions
See if the given reason really occurs in your conditions. 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. Lodge a complaint with the KiFiD
Can’t you solve it together? Then you can lodge a complaint with the Financial Services Complaints Institute (KiFiD). The KiFiD can determine that your insurance has been wrongly terminated and that the coverage must be restored.
5. Start a legal procedure
If the insurer persists, you can require through the court that your policy is restored or that you receive compensation. Our lawyers can guide you through this entire process.
What does Arslan Advocaten do for you?
- We assess whether the termination is legally valid.
- We object or complain to the insurer or the KiFiD.
- If necessary, we start a procedure in court.
- We recover our costs from the insurer, so our help can be free for you.
Has your insurance been terminated unjustly?
Contact Arslan Advocaten. We ensure that your cover is restored and that your rights are protected.
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