Termination at any time, deletion under conditions of the health questionnaire, period of the right to be forgotten reduced: Parliament finally adopted Thursday, by a final unanimous vote of the Senate, a reform of borrower insurance for mortgages.
Led by MP Patricia Lemoine (Agir) and supported by the government, the bill for fairer, simpler and more transparent access to the borrower insurance market initially aimed to introduce more competition in the banking sector, in a position strength in this field (88% market share), and in insurance, in order to lower costs for the consumer. It opens up the possibility of changing borrower insurance free of charge at any time, and no longer just on the anniversary date. This provision will come into force on June 1 for new contracts, and from September 1 for others.
A gain in purchasing power
In accordance with the wishes of the Senate, which initially opposed this measure, insurers will have to inform borrowers each year of their right and its terms of implementation. This bill represents a real gain in purchasing power for our compatriots, assured the Minister in charge of Public Accounts Olivier Dussopt, quantifying this gain approximately 550million euros per year. A figure, however, disputed by the president of the Senate’s Economic Affairs Committee, Sophie Primas (LR).
at the initiative of the senators, the health component of the bill has also been beefed up. The medical questionnaire is removed for home loans below 200,000 euros per person (ie 400,000 euros for a couple) and whose term occurs before the 60th birthday of the borrower. These thresholds may be modified by decree, only in a direction favorable to the borrower, specified the rapporteur of the text at the Senate Daniel Gremillet (LR).
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Improved right to be forgotten
The period of the right to be forgotten for cancers and hepatitis C is reduced by ten to five years. “It was a measure demanded by patient associations for several years, recalled Patricia Lemoine during the last vote in the National Assembly on Tuesday. The right to be forgotten now allows former cancer patients to no longer have to declare their illness to their insurer ten years after the end of their treatment protocol.
The signatories of the AERAS agreement (Insuring and Borrowing with an Aggravated Health Risk) will also be required to enter into negotiations by July 31, 2022 on pathologies other than cancer. It is a law that will change the lives of many owners, welcomed Patricia Lemoine. We have done useful work and we can be proud of it, added Daniel Gremillet.
The borrower’s insurance market is valued at nearly 10 billion euros in premiums per year, and concerns nearly seven million homeowners with outstanding credit.
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