It is necessary to refer to Articles 21 and following of the CIMA Insurance Code in force in Cameroon to answer this question.
The duration of the contract and the conditions of cancellation are set out in the insurance contract and clearly stated in the Special Conditions.
The insured may request the cancellation of his contract either by a declaration made against receipt at the registered office or at the insurer’s representative in the locality, or by the extrajudicial act, by registered letter, or by any other means indicated in his insurance policy, at least 2 months before the annual due date. The cancellation period is stated in each policy and runs from the date shown on the postmark or insurer’s stamp.
If the insured fails to send a letter of cancellation within the stipulated period, the automatic cancellation for non-payment of the premium may entitle the insurer to payment of damages by the insured.
These provisions do not apply to life insurance.
In addition, in case of:
· Change of residence,
· Change of profession,
· Professional retirement or permanent cessation of professional activity,
· Change of matrimonial regime.
The insurance contract may be canceled by the insured person if it covers risks which are directly related to the previous situation and which are not covered by the new situation, within three months of the date of the event.”
Articles 65 and following of the Insurance Code deal with the modalities of renunciation in the context of life insurance.
– Any natural person who has signed an application for insurance or a life insurance policy or a capitalization contract has the right to renounce it by registered letter with acknowledgment of receipt or any other means of proof of receipt within thirty (30) days of the first payment.
– The waiver results in the return of the premium paid, less the cost of the policy, within a maximum period of thirty (30) days from the receipt of the waiver. After this period, the unpaid sums shall automatically bear interest at half the legal rate for two (2) months, then at double the legal rate.
– The insurance application, the insurance policy, or the capitalization contract must indicate, in particular, for contracts that include them, the guaranteed surrender values at the end of each of the first eight (8) years at least, as well as, in the same table, the sum of the premiums or contributions paid at the end of each of the same years.
For these same contracts, the insurer must insert a box at the beginning of the insurance proposal or policy, the content of which is exhaustively defined in Article 65-1 of the Insurance Code.
Failure to provide the documents and information provided for in this Article shall automatically entail an extension of the period provided for in the first subparagraph until the thirtieth day following the date on which the documents and information are actually provided.
By way of illustration…
When opening her bank account, Mrs. Catherine M. hastily filled in and signed various documents without paying attention to the writing. Among these documents were application forms for pension insurance.
A few months later, she realized that her account was being debited each month for this insurance. As she is already covered by her employer for this benefit, which she does not wish to combine, she wishes to terminate her contract.
She raised her concern with ELITIS, who replied that pension insurance is a capitalization contract. She had the option to withdraw within 30 days of the first payment.
This deadline seems to have passed (several months have passed)…
But Mrs. Cathérine had not received the contractual documents. It must therefore request them from the bank in order to find out the terms and conditions of the contract. If these terms and conditions are not acceptable to her, she will have 30 days from the date of actual receipt of these documents to withdraw from the subscription.
It is important to stress here that ELITIS always draws the attention of its clients to the need to always read the documents they sign and to ask for a copy to keep.
To understand the insurance process, it is necessary to refer to Articles 21 and following of the CIMA Insurance Code in force in Cameroon. These articles are well detailed by clicking on this link https://lnkd.in/dPXSJDab