Revision of the Insurance Contract Act (LCA) - The consultation is extended to 31 July 2009
The Federal Council has launched consultation proceedings on the revision of the LCA (loi fédérale sur le contrat d’assurance) (General Insurance Conditions). The revision is intended to bring the 100-year old law up to date and better safeguard the interests of the consumer. The consultation period runs until 31 July 2009 (initialy 30 April).
A first partial revision which came into effect on 1 January 2006 satisfied the most urgent consumer protection concerns. The principal reasons for the total revision of the LCA are the need to adapt insurance contract law to changing circumstances and to ensure appropriate and sensible policyholder protection. The draft law seeks to strike a balance between the obligations of the policyholder and those of the insurer.
The draft law contains the following main changes:
- correction of shortcomings with respect to information, for example by extending pre-contractual and contractual information obligations;
- regulation of pre-contractual relationship;
- enhancement of the possibilities of contractual arrangements, in particular through the introduction of a right to withdraw and the possibility to conclude retroactive insurance contracts;
- completion of payment default regulation (especially premium payments) and of circumstances under which obligations are time barred;
- regulation of issues arising in connection with the termination of a contract, by introducing termination rights and provisions on liability after contract expiration and liability for pending insurance cases;
- regulation of the relationship to insurance intermediaries.
The total revision of the LCA is intended to strengthen the appeal of the Swiss economy and at the same time improve consumer protection.
Sources
Federal Finance Department
Draft laws subject to consultation proceedings (pdf)