Consumer protection

Application of 3-click termination: the specific provisions for insurance contracts that can be concluded online

Publié le null - Mise à jour le 14 septembre 2023 - Legal and Administrative Information Directorate (Prime Minister)

Online termination of insurance contracts that can be concluded electronically is possible in 3 clicks since 1er June 2023. The new regulation aims to promote competition and facilitate the termination of insurance contracts. It shall apply to future contracts but also to contracts outstanding at that date.

Image 1
Image 1Crédits: fizkes - stock.adobe.com

Pursuant to the Law of 16 August 2022 on an emergency measure for the protection of purchasing power, it is now possible for consumers to terminate online a contract they have concluded with a trader.

Online termination is possible if, on the day of termination, the contract can be concluded electronically. The purpose of the “3-click” termination is to simplify the terminations so that consumers can move towards contracts that are more advantageous for their purchasing power.

This provision has been mandatory since 1er September 2023 for future and ongoing contracts. It concerns in particular insurance contracts covering natural persons outside their professional activities.

Termination “in 3 clicks” also extends to many other services (telephony, electricity...).

Obligation of the trader

In order for the online contract to be terminated, the trader must make available to the consumer a free, permanent, direct and easy to access functionality enabling it to notify such termination. This feature should be named “terminate your contract”, a similar formula can also be used.

Once the trader receives the notice of termination, he must inform the consumer. It shall then inform him, within a reasonable period of time, of the date on which the contract will end and the effects of the termination.

Please note

Any failure by the trader to comply with his obligations will be punished by an administrative fine of up to €15,000 for a natural person and up to €75,000 for a legal person.

Online termination of insurance contracts and information to be provided by the insured

The possibility to terminate online also concerns insurance contracts covering natural persons outside their professional activities. This applies to contracts which can be concluded online with insurance companies, pension funds and mutual societies.

A decree of March 16, 2023 indicates the information that the insured will have to provide in the “terminate your contract” feature:

  • surname and forename (for a natural person), name of company or name (for a legal person);
  • means of contact (telephone number, email...) enabling the insurer to confirm receipt of the notification of the termination;
  • reference of the contract concerned (e.g. contract number);
  • reason for termination;
  • the date of the event giving rise to termination.

After providing this information, a summary will be presented to the insured.

The insured will then confirm his request by clicking on the legible statement “confirm my request for termination”, a similar form may also be used.

Please note

The “terminate your contract” feature will recall the conditions of termination of the contract (existence of a period of notice, consequences of the termination for the insured...).

Reminder

Since 1er january 2023, a person who has taken out an insurance contract for non-professional purposes in addition to goods or services rendered may renounce that contract, without charge or penalty, until it has been fully performed or until the insured has made use of any guarantee. This waiver must be made within 30 days (instead of 14 days) from the conclusion of the contract.

Additional topics