What is three click termination?
Law No. 2022-1158 of August 16, 2022 having emergency measures for the protection of purchasing power brings together various measures intended to preserve the standard of living of French and French, while limiting the impact of inflation on the budget of households. As such, it includes provisions specific to the insurance field, in a context of increased prices.
Article 17 of the Purchase Power Act, in particular, led to a modification of article L113-14 of the insurance code, with the aim of facilitating the termination of contracts covering natural persons.
Exit the request for termination by registered letter sent 3 months before the date of maturity of the contract! Concretely, from June 1, 2023 at the latest, insurance companies will have to make their customers available a termination button to cancel a contract in 1, 2 or 3 clicks.
Who is concerned by termination in 3 clicks?
Only insurance companies, provident and complementary health institutions that offer online subscription are subject to this obligation. However, all current contracts on the date of entry into force are affected by the system, regardless of the subscription methods.
Thus, three -click termination applies to all the insured, including those who joined before the subscription functionality electronically exists. It is thus possible to open a contract by post, by telephone or directly to the insurer’s premises, then to terminate on the Internet.
What are the types of contracts subject to three -click termination?
Insurance termination in 3 clicks is reserved for individual contracts covering natural persons, apart from their professional activities. All contracts of this type are thus concerned: auto insurance, home insurance, health insurance, funeral contract, provident, etc.
Thus, an employee benefits from this simplified procedure for all the contracts acquired individually: provident, life insurance, protection against injury, guarantee of accidents of life, supervisional health … On the other hand, he cannot terminate the collective contracts subscribed by his employer.
Another example: an unpaid worker cannot use the three-click termination mechanism for his professional liability insurance, because it is linked to his activity. However, he may benefit from it for his complementary health insurance or his provident contract subscribed personally.
Finally, an employer (as a legal person) has the possibility of terminating a collective insurance contract in 3 clicks, provided that said contract covers natural persons outside the professional framework
Termination in 3 clicks: What are the obligations of insurance companies?
A decree, not published at a time when we write these lines, must still fix the terms of access and use of this device. However, its large contours are already known.
Quick and direct access to termination functionality
The function of notification of the termination of the insurance contract must be presented at the insured using an unambiguous formula (for example: “terminate your contract”), displayed in legible characters.
In addition, this feature must be accessible directly and simply, from the online interface made available to the subscriber. This notion of interface, which is not precisely defined, probably includes the website of the insurance company, its mobile application or the customer area reserved for insured.
Thus, the draft decree leaves a certain room for maneuver to insurers in the implementation of the system.
Nevertheless, the termination functionality in 3 clicks must contain a recall of the conditions of termination of contracts. For example: the presence of a notice period and its consequences for the subscriber.
Restricted information to provide for the insured
To terminate his insurance contract in three clicks, the subscriber accesses a form in which he must provide a limited number of information, namely his identity and the reason for termination. Thus, it only provides useful information to authenticate in a secure manner, in order to avoid any risk of abuse or cancellation by a person other than the insured himself.
Regarding the reason for the termination, it must be chosen from a list comprising at least the following choices: “due to maturity” and “others (to be informed by the insured)”. Thus, the insurance company can adapt the reasons according to the contract concerned, while complying with the applicable legal and contractual provisions.
Compulsory written proof on the part of the insurer
The termination in 3 clicks is necessarily accompanied by written evidence provided by the insurance, provident or complementary health. Indeed, the insured must receive a confirmation of the proper reception of his request, as well as information on the date of end of the contract and the effects of the termination. This notification must be made on a lasting support and within reasonable deadlines.
Designed to simplify the lives of consumers and help them preserve their budget, termination in 3 clicks requires new practices to insurers, as well as changes in their web interfaces. Infoelsa supports you in this process: within the framework of the Act on purchasing power, we already integrate 3 clicks from our Ciriselsa insurance software.
