What does tacit renewal mean?
Tacit renewal means that unless you notify us to the contrary, the contract will be renewed automatically.
What is a tacitly renewable contract?
A tacitly renewable contract is one that automatically renews itself
for a further year at the end of its term. In other words, it is not
necessary for the contracting parties to express their wish to renew it.
Fixed-term insurance contracts often include a tacit renewal
clause. Renewal of the contract may be provided for in the interests of
the parties to the contract.
Can I object to tacit renewal?
The Chatel Law (Law no. 2005-67 of January 28, 2005) reinforces
policyholder protection by imposing a duty of information on the
insurer. It also sets strict deadlines for the procedure. The
policyholder’s objection to the tacit renewal of his contract must be
made by registered letter.
You must be clearly reminded of the
option not to recommit no later than two weeks before the deadline for
cancelling your contract.
How does the Loi Chatel work?
The Chatel law offers new cancellation options. There are 3 possible scenarios:
- the insurer respects its obligation and you receive a letter informing you of the possibility of cancelling within the legal time limit, i.e. 15 days before the end of the notice period. You can terminate your contract before the end of the notice period, after which you will be subject to automatic renewal.
- you receive the notice of termination just a few days before the end of the notice period. You then have 20 days from the date of dispatch of the expiry notice to cancel the contract.
- the insurer does not respect the rule, does not send a letter or does not comply with the legal deadlines. You can cancel the contract at any time by registered letter with acknowledgement of receipt. If you have already paid your premium, the insurer must reimburse you for any overpayment.
However, you should be aware that the Chatel law is only valid for tacit renewal contracts, which only apply to individuals outside their professional activities, and does not apply to life insurance, death insurance or group contracts. Finally, don’t forget that once you’ve cancelled, it’s important to find new health insurance to stay covered.
