Revision of the Swiss Federal Law on the Insurance Contract (ICA“Insurance Contract Act”): what's new

On 19 June 2020, the Parliament approved the revision of the ICA. The Federal Council brought the revised ICA into force with effect from 1. January 2022. The Act governs the relationship between insurance companies and their clients. The originale Act is quite old (1908) and needed a revision.

What will change?

1. Introduction of a 14-day right of revocation for policyholders

You can withdraw from the contract within a 14-day cooling off period. For example. if after a few days from the signing of an insurance contract you reconsider and change your mind, you can withdraw from the contract.

 

2. Ordinary right of withdrawal after three years for both contractual parties

The policyholders may also terminate long-term insurance contracts by the end of the third year.

 

3. Waiver of termination by health insurers

The right to terminate is only available to the insured.

 

4. Extension of the statute of limitations from two to five years

Claims arising from an insured loss can be enforced for up to 5 years after the occurrence of the event and no longer 2 years as before.

 

5. Compatibility of the LCA with the needs of electronic commerce

In addition to the written form (signature) it is now possible to send formal communications in electronic form. Termination is also accepted in text form (eg by e-mail).

 

6. Introduction of a general direct credit right for all civil liability insurance

Until before the entry into force of this revision of the LCA direct action by the injured party against the insurer was only possible in the context of liability insurance motor vehicles, by virtue of the provisions of the Road Traffic Act (LcStr). Now, provided that the conditions for liability and insurance coverage exist, the injured party can assert his rights directly against the insurance of the author of the damage, although the insurance contract was not stipulated with him, but with the person held to coverage.

To find out more, you can consult the official website of the ASA (Swiss Insurance Association): https://www.svv.ch