Which contracts are concerned by the hamon law

Which contracts are concerned by the hamon law

The Hamon law was passed on March 17, 2014. It concerns property and liability insurance contracts, but also health insurance contracts. This law aims to protect consumers by giving them more freedom to change their insurance. It allows policyholders to terminate their contracts whenever they wish, without charge or penalty, by giving 15 days' notice.

What is the hamon law?

The Hamon law aims at facilitating the change of insurance borrower, by the introduction of a device which allows all the borrowers to cancel annually their contract of insurance of loan.

The Hamon law is a key measure of the consumer bill (law n°2014-344) of March 29, 2014. It aims to make it easier for borrowers to change their home loan insurance during repayment, particularly for financial reasons or to benefit from better coverage.

The idea is thus to put an end to the compulsory character of the insurances bound to the real loans, what will allow the private individuals to better compare the existing offers and to make play the competition between insurance companies so that they propose more attractive tariffs. For that, the Hamon law offers various advantages: First of all, it removes the penalty of which are victims the borrowers who wish to change insurance real estate credit during the first year following the signature of the initial contract. Then, it gives access to the borrower to an indicative list of the minimal guarantees having to be included in its real-estate credit insurance, so that this one can choose freely its insurer without risking a forfeiture of the right to the daily allowances in case of disease or a lengthening of the waiting period.

Why was the hamon law created?

The Hamon law, named after the former Minister of the Economy, was enacted on March 17, 2014. It aims to improve the relationship of consumers with the actors of the insurance sector in France. While this law provides for a series of obligations on insurers and mutuals, it also brings several benefits to policyholders.

You can benefit from better coverage and more competitive rates thanks to the Hamon law. This law governs the relationship between insurance companies and their customers. Indeed, if you wish to change your contract or simply to know your guarantees, it is necessary that you play the competition in order to find a contract adapted to your needs but also at the best price. However, if your contract is 2 years old or more and does not meet your expectations because it is not sufficiently protective for example, you should know that you can use the Hamon law to obtain a full refund of your annual premium in case of early termination (provided that it is possible). Moreover, this law can also allow policyholders who have taken out a car or home insurance policy after January 1, 2015 to freely choose their new contract for a minimum period of one year (as opposed to three months previously).

What are the conditions of the hamon law?

The Hamon law, which came into effect on January 1, 2015, provides for the possibility of cancelling insurance contracts more easily. This new provision aims to improve the conditions of the insurance market, allowing consumers to benefit from better guarantees.

The Hamon law allows any insured to obtain a free quote and to quickly change his or her car or home insurance without having to wait for the expiration of the contractual term of the current contract. However, the law only concerns contracts signed since January 1st 2015. Indeed, the Hamon law stipulates that policyholders who signed a contract after this date can be reimbursed when they wish to change insurer. If you are concerned by this case, you will be able to ask for the reimbursement of the cancellation fees that you will have to pay if you change your car or home insurer thanks to the Hamon law.

Does the hamon law apply to current contracts?

The Hamon law, named after the Minister of Economy and Finance, came into force on January 1, 2015. It aims to improve the purchasing power of the French by helping them to cancel their insurance contracts more easily.

Insurers were obliged to offer their customers a service allowing them to terminate contracts taken out before January 1, 2015 without charge (Art.

L113-15-1 of the insurance code).

The Hamon law makes it easier for policyholders to cancel their car and home insurance contracts that have been in effect for at least one year (art.

L113-16 of the insurance code).

What are the consequences of the hamon law for the contracts concerned?

The Hamon law aims to protect consumers of insurance contracts. This law aims at freeing the market and encouraging competition between the various actors. It allows the insured to cancel a contract when they wish, without having to justify particular reasons or to pay penalties.

The Hamon law came into force on January 1, 2015. If you have a life insurance contract with an insurance company, you are concerned by this law and can therefore change your contract if you wish. However, not all insurance policies are affected by this law: some have been defined as "exclusive" or "non-exclusive". Are therefore excluded from this law all insurances linked to real estate credit (mortgage loans, bridging loans), insurances linked to means of payment (bank cards) and some optional guarantees that do not appear in your contract (theft guarantee).

The main interest of the Hamon law is that any insured person can cancel his contract without any additional costs or justifications whatever his financial situation and whatever the reason why he wants to change insurance company (change of main residence for example). On the other hand, once the first year following the date of subscription of the contract has passed, you will have to wait 2 years to request its cancellation.

Is the hamon law beneficial to consumers?

The Hamon law is a provision of the consumer law that allows any insured to adapt his insurance contract, to change it in favor of more interesting guarantees. This provision concerns as well the car insurances as the health insurances or house. It comes to supplement the device envisaged by the article L114-1 of the code of the insurances. As a reminder, this article provides that any insured may cancel his insurance contract on its anniversary date and that in case of non-renewal of the contract, he is entitled to the same compensation as that which would have been due if the contract had not been cancelled. Since January 1, 2015, the Hamon law makes it possible for new customers to cancel their car and motorcycle insurance contracts annually. This means that when you take out a contract with a car or motorcycle insurer, the latter can no longer modify the guarantees without your agreement and without specific reasons before a minimum period of 12 months after the signature of the initial contract. Until now, these changes could only be made at the end of the first year following the signing of the first contract; this period will now be extended to 12 months after each tacit renewal of the contract (every year). Within the framework of this device, the insured can always cancel his home insurance: he must simply respect a minimum delay between 2 due dates in order to obtain the anticipated refunding of the sums due for the contributions not yet due (two years in the event of sale or three years in the event of removal).

For the insurance contracts, there are two types of contracts concerned by the Hamon law. There are the insurance contracts which are obligatorily responsible contracts and those which are not. The responsible contracts are the contracts which envisage a financial participation of the insured and minimal guarantees.


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *