Affinity insurance, which is often sold with a telephone or computer to cover the risk of loss, theft, or malfunction of the device, is increasingly the subject of litigation. To counter this trend, a proposed law wants to give customers the possibility of canceling at any time.
Should affinity insurance be better regulated? This is what Renaissance MP Danielle Brulebois wants, who is a bill in this direction. Objective, to allow termination of the affinity insurance contract at any time as is the case for borrower insurance without additional costs or penalties.
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As a reminder, affinity insurance is optional insurance, taken out in addition to a good or service sold by a supplier. They can therefore cover the loss, theft, or malfunction of a telephone, computer, tablet, but also the cancellation of a trip, loss of luggage, etc.
Currently, after subscribing, the customer has a period of 30 days to cancel this insurance. If the insurer offers a free period, these 30 days are counted at the end of the latter. After this period, you will have to wait one year to cancel.
Rising disputes
The MP recognizes that these insurances have shown their usefulness, they provide a new service, and in most cases they are offered in an appropriate and transparent way. But the problem is that this is not always true and they generate more and more disputes. Affinity insurance represents 13% of the total files of the insurance mediator in 2021. A trend which has accelerated since the start of the year, points out the text which adds that an association for the defense of consumer rights even records more than 6000 complaints this subject.
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Emblematic case of these abuses: Sfam, a company which marketed insurance for mobile phones and multimedia devices, in particular via the Darty and Fnac brands and which faces multiple complaints for undue deductions. Placed in judicial liquidation, the company, which will also soon be judged for deceptive business practicesis still accused today of pursuing fraudulent withdrawals.
Better match the lifespan and purchase prices
According to the MP, giving customers the opportunity to cancel at any time would avoid this type of drive. Another advantage: better match the lifespan of the covered products and their purchase prices. In addition, technological developments mean that consumers quickly resell their telephone or computer (…) the guarantee then no longer has any purpose. The text even provides for facilitating termination thanks to a drafting model that the insurer must propose.
The proposal also prohibits the insurer from terminating this insurance contract due to increased risk except in certain conditions defined by decree of the Council of State, resulting from a voluntary change in behavior of the insured.