Extraordinary cancellation

What is an extraordinary cancellation?

An extraordinary cancellation (ausserordentliche Kündigung) ends an insurance contract outside the usual cancellation dates. In health insurance, you always need to distinguish between basic health insurance under the Federal Health Insurance Act (KVG) and supplementary insurance under the Insurance Contract Act (ICA), because the rules are completely different.

In basic health insurance, there are two ordinary dates: 1 January, with cancellation by 30 November after the premium notification, and, only with the standard deductible and no special model, 1 July, with cancellation by 31 March. A cancellation counts as extraordinary if your insurer changes the premium during the year. You may then switch at the end of the month before the new premium applies. According to the FOPH, such premium increases during the year are rare.

In supplementary insurance, “extraordinary” mainly means cancellation for good cause and cancellation after a claim. A right to cancel after a premium increase only exists there if the General Terms and Conditions (GTC) of your product provide for it.

How it works

Basic health insurance

Your insurer must notify you in writing of any premium change at least two months before it takes effect and point out your right to switch. From this notification, you can cancel with one month’s notice, to the end of the month before the new premium applies. Your notice of cancellation must reach the insurer within the deadline; the postmark is not enough.

According to the FOPH, there is no extraordinary right to cancel if your premium changes because you move within your insurer’s area of operation, because you move from the children’s premium to the adult premium or because your premium subsidy ends. In those cases, the normal dates apply.

A special case arises if you have to leave the insurer because you move out of its area of operation or change jobs: your insurance then ends automatically when you move or start work with your new employer. The same applies if an insurer is no longer allowed to offer basic health insurance. This is not a cancellation but an end by law; however, you must take out new insurance immediately.

Supplementary insurance

• For good cause: at any time, in writing or in another form that allows proof by text. Good cause means a reason that makes it unreasonable, in good faith, for you to continue the contract, or an unforeseeable change in the law.
• After a claim: after a claim, you can withdraw from the contract at the latest when the benefit is paid out. In supplementary health insurance, only you have this right, not the insurer.
• After a premium increase: only if the GTC of your product provide for it. Read the clause on premium adjustments before you rely on it.

Legal basis

Art. 7 para. 2 KVG gives you the right, when you are notified of a new premium, to switch insurer with one month’s notice to the end of the month preceding the date on which the new premium takes effect. The insurer must notify you of the premium approved by the FOPH at least two months in advance and point out your right to switch. Under Art. 7 para. 3 KVG, the insurance ends if you have to leave the insurer because of a change of residence or job, and under para. 4 if the insurer loses its authorisation. Under Art. 94 para. 3 of the Health Insurance Ordinance (KVV), you keep your optional deductible when switching during the year in such a case, provided the new insurer offers it. Art. 64a para. 6 KVG rules out switching if there are arrears.

For supplementary insurance, Art. 35b of the Insurance Contract Act (ICA) governs cancellation for good cause. Art. 42 para. 1 ICA allows withdrawal after a partial loss at the latest when the benefit is paid out, and Art. 35a para. 4 ICA stipulates that in supplementary health insurance, the ordinary right to cancel and the right to cancel after a claim belong only to the policyholder, i.e. the person who took out the policy. The ICA does not contain a statutory right to cancel after a premium increase.

Example: premium increase on 1 August

The FOPH explains the rule using the following case: an insurer increases the premium for basic health insurance with effect from 1 August. The deadlines follow directly from Art. 7 para. 2 KVG.

What this means for you

Check every premium notification immediately for the date from which the new premium applies. Your deadline depends on it. Then proceed as follows:

1. Find a new insurer. Compare premiums in the premium calculator and register with the new insurer.
2. Write your notice of cancellation. With the cancellation letter, you create the letter with the correct address; the sample cancellation letter also gives an overview.
3. Make sure you can prove receipt. Send the notice of cancellation in a way that lets you prove it arrived, and in good time before the deadline.
4. Settle any arrears. Pay all amounts for which you have received a reminder before the deadline expires.
5. Check your supplementary insurance. Your supplementary insurance continues independently; the insurer may not cancel it because you switched.

The general deadlines are shown under Deadlines and in the entry notice period. Switching explains the whole process.

Common mistakes

• Thinking the postmark counts. Your notice of cancellation must have reached the insurer within the deadline.
• Insisting on a special right after moving house. A higher premium due to a move, a move into a new age group or the loss of a premium subsidy does not give you an extraordinary right to cancel.
• Cancelling supplementary insurance at the same time. It is governed by the GTC and the ICA. If you cancel it, you will usually have to answer health questions for new supplementary insurance.
• Cancelling with unpaid bills. Arrears for which you have received a reminder make the cancellation ineffective.
• Choosing the new insurer too late. Your old insurance only ends once the new insurer has confirmed that cover continues without interruption.