Waiting period, franchise or franchise period, coverage limit: definitions
The waiting period refers to the period following the entry into force of the contract during which the insured cannot benefit from any guarantee in the event of a claim:
Example: A motorist takes out automobile insurance on January 1, 2020. The contract provides for a waiting period of 3 months for the “broken glass” guarantee. “Glass breakage” claims declared between January 1 and March 31 will not be covered.
Note: Premiums are due in full even if a waiting period is provided for in the contract.
The deductible generally refers to the portion of the amount of the claim remaining payable by the insured. In practice, a sum of money provided for in the contract will be deducted from the compensation paid to the insured.
Example: A motorist declares a claim to his insurer valued at € 500. The deductible provided for in its automobile insurance contract for this type of claim is € 300. The insurer will therefore compensate the insured up to € 200 (amount of the claim - amount of the associated deductible = compensation paid to the insured).
The franchise period: the franchise period most often designates the period following the declaration of an event during which the insured will not be compensated.
Example: An insured person is totally incapacitated for work and requests the activation of his provident insurance contract. A 3-month franchise period is provided for in his contract. Compensation for the insured will therefore begin from the 91st day of stoppage of work, the first 90 days not being compensated.
The guarantee ceiling: this corresponds to the maximum amount of compensation that the insurance organization will pay you under a guarantee or under all the guarantees in the contract.
Note: Keep in mind that:
- for damage insurance contracts, the amount of compensation cannot be greater than the value of the insured property.
- for complementary health insurance contracts, the amount of compensation cannot be greater than the amount of the expense incurred.
To know more :
What are the right reflexes to adopt during the life of the insurance contract?
Can my insurer refuse to guarantee me while I pay my premiums?
How long does my insurer have to compensate me for a loss?
There is no legal deadline imposed on insurers to compensate their policyholders.
However, the law imposes, in certain cases, deadlines:
If you are the victim of damage as a result of a traffic accident, the insurer of the person responsible for the accident is required to present you with an offer of compensation within a maximum period of three months from your claim. compensation.
Structural damage insurance: the insurer must, within a maximum period of 60 days from receipt of the claim, make known its decision on the principle of the application of guarantees and, where applicable, present an offer of compensation within a maximum period of 90 days from receipt of your claim. If the offer is accepted, the compensation must be paid to you within 15 days.
In the event of natural disasters: from the date of submission of the estimated state of the damaged goods or the date of publication of the decree of natural disasters, the insurer has 2 months to pay a provision on the compensation due under this guarantee and 3 months to proceed with the total payment of the indemnities.
Apart from any legal rule, the contract may provide for compensation periods, so it is advisable to refer to it to verify the obligations of your insurer in this matter.
To know more :
What are the consequences of not paying an insurance premium?
Can my insurer refuse to guarantee me while I pay my premiums?
I would like to use my insurance contract, within what time frame must I declare my claim?
When can I cancel my insurance contract?
Generally, an insurance contract can be terminated each year. The termination request must be sent at least 2 months before the expiry date of the contract, in particular by letter or any other durable medium or by any other means provided for in the contract.
Be aware that the end date of a contract is not necessarily December 31 of each year. Consult your contractual documentation to find out.
Some insurance contracts also allow you to benefit from other termination possibilities:
“Infra-annual” termination (known as the “Hamon Law”):
For automobile, home and affinity insurance policies taken out by individuals for non-professional purposes, termination must be requested:
at any time after a period of one year from the 1st subscription of the contract
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