In a meaningful reform, the Belgian legislative body has passed a law aimed at simplifying the process of termination for tacitly renewable non-life insurance contracts. It is a staple of Belgian insurance law, specifically the law decreed on April 4th, 2014, that non-life insurance contracts hold a maximum term validity of one year. Typically, such contracts undergo tacit renewal every year, unless one of the parties involved – namely the policyholder or the insurance company – opposes the renewal at least three months prior to the contract’s expiration. This implies that the policyholder must actively express their intent to terminate the contract.
The new regulations tabled by the Belgian legislature are designed to notably streamline the process of terminating contracts of this nature. The briefing about this change has been dutifully documented by Hogan Lovells. It is suggested that legal professionals dealing in insurance contractual matters on both, corporate and individual levels, study these legislative changes closely to ensure a sophisticated understanding of the implications the changes might have on their respective fields.