Premium increase: your extraordinary right of cancellation
The Insurance Contract Act (ICA) provides for an extraordinary right of cancellation when your insurer increases your premium. This right is valuable: it allows you to change insurer at any time of year, without waiting for the ordinary renewal date.
When does this right apply?
The extraordinary right of cancellation for a premium increase is provided for by the ICA (art. 45) for personal insurance and by the general conditions for property insurance (motor liability, household, etc.). The notice of increase must be clear and formal.
Read your insurer's communication carefully: it must state the new premium amount, the effective date and, in principle, your right of cancellation. Keep this document as proof.
The deadline: one month from the notice
You generally have one month from receipt of the notice of increase to exercise your right. This deadline is strict: a letter arriving too late will not be accepted. Send your cancellation by registered mail as soon as you receive the notice.
The cancellation takes effect on the date the increase comes into force. Your insurer must refund on a pro rata basis any premiums paid in advance beyond that date.
Exception: basic LAMal insurance
For basic health insurance (LAMal), the autumn premium increase announced by the FOPH also opens an extraordinary right of cancellation, with one month's notice from the official communication. This right is broader than for ICA lines: all increases announced each autumn trigger this right for all policyholders.