Cancelling supplementary insurance

What is cancelling supplementary insurance?

By cancelling, you end a contract for supplementary insurance, for example for a semi-private hospital ward, dental treatment, glasses or complementary medicine. Unlike basic health insurance, supplementary insurance is voluntary and is governed by the Insurance Contract Act (ICA, in German VVG). That is why different rules apply than when you switch insurer in basic health insurance.

In basic health insurance, the Federal Health Insurance Act (KVG) sets the dates: 30 November for a switch to the end of the year. In supplementary insurance, the ICA and your contract decide. The term, the notice period and any special rights of cancellation are set out in the policy and in the general terms and conditions. The law only sets a framework, which the contract can improve in your favour.

Important: if you cancel supplementary insurance, you usually lose it for good. A new insurer can turn you down because of your state of health or attach reservations. This risk does not exist in basic health insurance.

How it works

Ordinary cancellation. Every contract can be cancelled to the end of the third year of the contract or any subsequent year, even if a longer term has been agreed. The notice period is three months. Notice must be given in writing or in another form that allows proof by text, for example by letter or e-mail. Contracts may allow earlier cancellation, for example every year; the notice periods must then be the same for both sides. A multi-year contract therefore binds you at most until the end of the third year.

Only you may cancel by ordinary notice. In supplementary health insurance, the ordinary right of cancellation and the right to cancel after a claim belong only to you as the policyholder, meaning the person who took out the policy; for children, the parents cancel as policyholders. The insurer cannot cancel your contract because you get older or submit a lot of bills.

Cancellation after a claim. After an insured event, you can withdraw from the contract at the latest when the benefit is paid out. Cover ends 14 days after you give notice. Details under cancellation after a claim.

Cancellation for good cause. Both sides can cancel at any time if, in good faith, continuing the contract can no longer reasonably be expected.

Premium increase. There is no statutory special right of cancellation. Some general terms and conditions provide one, usually to the date of the new premium. The deadline is stated in the insurer’s letter or in the general terms and conditions.

Switching basic health insurance. Your current insurer may not force you to cancel your supplementary insurance, and it may not cancel it solely because you switch.

Legal basis

Art. 35a para. 1 ICA allows cancellation to the end of the third or any subsequent year with three months’ notice, in writing or in a form that allows proof by text. Under para. 2, the parties can agree that the contract may be cancelled earlier, with the same notice periods for both. Para. 4 states that, in supplementary insurance to social health insurance, the ordinary right of cancellation and the right to cancel after a claim belong only to the policyholder. Art. 35b ICA governs cancellation for good cause, and Art. 42 ICA withdrawal after a claim.

These rules have applied since 01.01.2022. Under Art. 103a ICA, the rights of cancellation in Art. 35a and 35b also apply to contracts concluded before then. If you answered health questions incorrectly when you took out the contract, the insurer can cancel it under Art. 6 ICA. Art. 7 para. 7 and 8 KVG separate supplementary insurance from switching basic health insurance.

Example: contract since 01.01.2024

Sandra, 45, has had supplementary hospital insurance for the semi-private ward since 01.01.2024. Her general terms and conditions do not provide for a shorter term. She wants to cancel.

Contract year ends	Notice must be given by	Possible?
31.12.2024 (1st year)	–	no, before the end of the 3rd year only if the contract allows it
31.12.2025 (2nd year)	–	no
31.12.2026 (3rd year)	three months before, i.e. by 30.09.2026	yes
31.12.2027 (4th year)	by 30.09.2027	yes

You can create your notice with the cancellation letter generator or the sample cancellation letter. The dates for basic health insurance are under deadlines.

What this means for you

1. Read your policy and the general terms and conditions. Look for the start of the contract, the term, the notice period and any right to cancel after a premium increase.
2. Secure new cover first. Apply for the new supplementary insurance, answer the health questions in full and wait until you are accepted. Compare benefits in the supplementary insurance comparison.
3. Cancel in a way you can prove. Send your notice by registered post or in another form with proof by text, so that it reaches the insurer before the notice period starts.
4. Look at basic health insurance separately. If you only switch basic health insurance, your supplementary insurance can stay where it is. The process is described under switch insurer. You can find data on the insurers under health insurers.

Common mistakes

• Cancelling before the new insurer has accepted you. If you are turned down, you are left without supplementary insurance and often cannot find new cover later.
• Applying the deadline for basic health insurance. 30 November applies to basic health insurance. In supplementary insurance, the contract and the ICA count, often with three months’ notice.
• Cancelling both types of insurance in one letter without meaning to. State exactly which contracts you are cancelling.
• Believing the insurer can cancel because of high costs. In supplementary health insurance, it may not do so by ordinary notice.