Cancellation of Insurance Policies – C1 Broker Portugal
At C1 Broker Portugal we assist our clients in managing their insurance contracts, including requests for cancellation, non-renewal, amendment or replacement of policies.
It is important to clarify that the cancellation of an insurance policy in Portugal is subject to the applicable legal framework, the contractual conditions of the policy, and validation by the relevant insurance company.
C1 Broker acts as an insurance intermediary/broker. Our role is to provide information, support the client, gather the necessary documentation and forward the request to the insurer. The final decision on whether to accept the cancellation, the effective date, any premium refund, or the issue of corrective documents rests with the insurance company, in accordance with applicable legal and contractual provisions.
Important notice: requests for non-renewal of automatically renewing policies must be submitted in writing at least 30 days before the renewal date, pursuant to Article 115(1) of the Legal Framework for Insurance Contracts. Requests submitted outside this deadline may not prevent the automatic renewal of the policy or the charging of the corresponding premium. C1 Broker will forward and monitor the request, but the final decision rests with the insurer.
1. Legal Framework
The insurance contract in Portugal is governed, among other legislation, by the Legal Framework for Insurance Contracts, enacted by Decree-Law No. 72/2008 of 16 April. This legislation regulates matters such as the formation, duration, renewal, premium payment, termination, rescission and cessation of insurance contracts.
Under Article 41(1) of the Legal Framework for Insurance Contracts, unless otherwise agreed, an insurance contract concluded for an initial period of one year renews successively, at the end of the agreed term, for further one-year periods.
Notice of termination to prevent automatic renewal must comply with the applicable legal deadline. Article 115(1) of the Legal Framework for Insurance Contracts establishes that notice must be given by written declaration sent to the recipient with a minimum of 30 days’ advance notice before the date of renewal.
This means that when a client wishes to prevent the automatic renewal of a policy, the request must be submitted in writing at least 30 days before the renewal/extension date.
2. Cancellation, Non-Renewal, Revocation and Rescission: Different Concepts
Not all “cancellation” requests carry the same legal meaning. In practice, several different situations may arise.
Non-renewal or termination notice – Non-renewal occurs when the policyholder wishes to prevent the policy from renewing for a further contractual period. In such cases, the request must be submitted in writing with the minimum legal advance notice of 30 days before the renewal date, unless a specific contractual or legal regime applies.
Revocation by mutual agreement – Revocation refers to the termination of the contract by agreement between the parties. It depends on the insurer’s acceptance and the conditions applicable to the contract.
Rescission – Rescission occurs when there is a legal or contractual basis permitting termination of the contract before its expiry. It may depend on the existence of just cause, a change in circumstances, or another ground provided for in law or in the policy.
Annulment or policy correction – In certain situations, the matter may concern the correction of data, annulment due to error, replacement by another policy, or administrative regularisation. These requests are assessed by the insurer on a case-by-case basis.
3. The 30-Day Deadline to Prevent Renewal
Where the policy renews automatically, the non-renewal request must be submitted with a minimum of 30 days’ advance notice before the renewal date.
Example: if a policy renews on 1 May, the non-renewal request must be submitted to the insurer at least 30 days before that date.
Requests submitted outside this deadline may not prevent the automatic renewal of the policy or the charging of the corresponding premium.
C1 Broker can forward the request to the insurer and assist the client, but cannot guarantee acceptance of requests submitted outside the applicable legal or contractual deadline.
4. The Role of C1 Broker
C1 Broker acts as an insurance intermediary/broker. Under Article 31 of Law No. 7/2019 of 16 January, the intermediary must provide the client with adequate information regarding its identity, registration, capacity in which it acts, remuneration, complaints procedures, whether advice is provided, and other legally required details.
In the context of managing cancellation requests, C1 Broker may:
- inform the client about generally applicable procedures;
- indicate the documentation typically required;
- receive the client’s request;
- forward the request to the insurer;
- monitor the progress of the request;
- request confirmation of the insurer’s decision;
- assist the client in obtaining receipts, refunds, certificates or other documents.
C1 Broker cannot:
- unilaterally cancel a policy issued by an insurer;
- independently alter the effective date of the cancellation;
- prevent a charge already issued by the insurer;
- guarantee refunds where the request is submitted outside the applicable legal or contractual deadline;
- act in place of the insurer in deciding whether to accept or refuse the request.
5. The Role of the Insurer
The insurance company is the entity that issues the policy, assumes the risk, collects the premium and manages the contractual execution of the insurance.
It is the responsibility of the insurer, in accordance with applicable legal and contractual provisions, to:
- confirm the policy renewal date;
- verify whether the request was submitted within the deadline;
- validate the documentation received;
- accept or refuse requests for cancellation, non-renewal, annulment or refund;
- issue receipts, billing notices, credit notes or other contractual documents;
- make available the general, special and particular policy conditions.
6. How to Request Cancellation or Non-Renewal of a Policy
To submit a request, please fill the form here.
The request must be submitted in writing and with sufficient advance notice, particularly in cases of non-renewal of automatically renewing policies.
7.Important Information Before Requesting Cancellation
Before requesting the cancellation of a policy, the client should check:
- the policy start and end dates;
- the automatic renewal date;
- the applicable notice period;
- whether the insurance is compulsory;
- whether there is a legal, contractual or professional obligation to maintain cover;
- whether there is a premium outstanding or already charged;
- whether the policy needs to be replaced by another insurance;
- whether cessation could leave persons, property, employees or liabilities without cover.
In the case of compulsory insurance, cessation of the policy may have significant legal or contractual consequences. The client must ensure they do not find themselves without mandatory cover.
8. Requests Submitted Outside the Deadline
Where a non-renewal request is submitted outside the applicable legal or contractual deadline, the insurer may consider that the policy has renewed automatically.
In such cases, C1 Broker may nonetheless transmit the request to the insurer and ask for it to be reviewed. However, acceptance of the request, any possible annulment of the renewal, or a premium refund are entirely at the insurer’s discretion.
Submitting a request outside the deadline does not automatically prevent the policy from renewing or the premium from being charged.
9. Policy Documents
The general, special and particular conditions, certificates, receipts and billing notices are documents associated with the insurance contract issued by the insurer.
C1 Broker makes available on its website pre-contractual information, DIPSs/IPIDs, general conditions and compliance documentation.
In the case of Allianz policies, the specific contractual documentation may also be made available directly by the insurer to the client by email and through the insurer’s digital portal, where applicable.
10. Confirmation of Cancellation
A cancellation or non-renewal request should only be considered completed once confirmation has been received from the insurer.
Until such confirmation, the request remains under review or in processing.
C1 Broker will communicate to the client any information received from the insurer as soon as it becomes available.
11.Complaints and Dispute Resolution
If a client wishes to submit a complaint relating to a cancellation request, this can be done via: [email protected]
C1 Broker also provides access to the Electronic Complaints Book, information on the ASF – Insurance and Pension Funds Supervisory Authority, and reference to the CIMPAS – Insurance Information, Mediation, Ombudsman and Arbitration Centre, as an alternative dispute resolution mechanism in the insurance sector.
The information on this page is of a general nature and does not replace analysis of the specific policy, its particular conditions, the insurer's conditions, and applicable legislation. Each request for cancellation, non-renewal, annulment or refund must be assessed in light of the contract in question, the renewal date, the applicable deadline, the documentation submitted and the insurer's decision.
FAQs – Cancellation of Insurance Policies
It depends on the type of contract, the stage at which the policy stands, the contractual conditions and the grounds for the request. The Legal Framework for Insurance Contracts provides for several ways to end a contract, including termination notice, rescission, revocation by mutual agreement, expiry and other situations provided for in law or in the contract. Not all “cancellation” requests take immediate or automatic effect. Each request must be assessed by the insurer based on the specific policy.
“Cancellation” is often used loosely, but legally different situations may be at play. Non-renewal/termination notice is when the policyholder wishes to prevent the policy from renewing at the end of the contractual period. Rescission is when there is a legal or contractual basis to end the contract before its expiry. Revocation by mutual agreement is when the policyholder and insurer agree to terminate the contract. Annulment or correction may occur in specific situations, for example due to error, policy replacement or administrative regularisation. The practical outcome, timescales and possibility of a refund may vary accordingly.
For insurance contracts with automatic renewal, the non-renewal request must be submitted in writing with a minimum of 30 days’ advance notice before the renewal date, pursuant to Article 115(1) of Decree-Law No. 72/2008 of 16 April.
If the request is submitted outside the applicable legal or contractual deadline, the policy may renew automatically and the corresponding premium may become due. C1 Broker can still forward the request to the insurer, but cannot guarantee that the insurer will accept the annulment, suspend the charge or issue a refund. The final decision rests with the insurance company.
No. C1 Broker acts as an insurance intermediary/broker. Its role is to assist the client, collect and verify information, forward the request to the insurer and monitor its progress. C1 Broker is not the insurance company and cannot unilaterally cancel a policy issued by an insurer.
The final decision rests with the insurance company that issued the policy. The insurer is responsible for verifying the renewal date, notice period, particular and special policy conditions, any premiums outstanding, the documentation submitted and the grounds for cessation. C1 Broker supports the process as intermediary but does not replace the insurer in making the decision.
No. Submitting the form simply means that C1 Broker has received the request and will forward or process it within the scope of its role as intermediary. Until express confirmation is received from the insurer, the request should be considered under review or in processing.
Yes. For evidential and traceability purposes, and for processing with the insurer, the request must be submitted in writing. Article 115(1) of the Legal Framework for Insurance Contracts expressly states that termination notice must be made by written declaration sent to the recipient with at least 30 days’ advance notice before the renewal date.
You may submit a request, but you must take particular care. For compulsory insurance, cessation of the policy may leave the policyholder in breach of a legal, contractual or professional obligation. Before requesting cancellation, the client must confirm whether they are still required to maintain valid cover.
Not necessarily. Whether a refund is due depends on the type of insurance, the reason for cessation, the effective date accepted by the insurer, the contractual conditions, the period of cover already elapsed and the applicable legal framework. C1 Broker can request clarification or a refund document from the insurer, but cannot guarantee the return of any premium.
As a general rule, documents relating to the insurance premium — receipts, billing notices, refund notes, credit notes or equivalent documents — are issued by the insurance company. C1 Broker can assist the client in obtaining such documents from the insurer, but their issue is the responsibility of the entity that issued the policy and processed the premium.
The general, special and particular policy conditions are contractual documents issued or made available by the insurer. C1 Broker makes supporting documentation available on its website, including pre-contractual information, DIPSs/IPIDs and General Conditions for the products of the insurers it works with. For Allianz policies, the specific contractual documentation may also be made available directly by the insurer by email and through the my Allianz digital portal, where applicable.
Yes, C1 Broker can provide assistance and advice within the scope of its insurance distribution activity, in accordance with the applicable legal framework. If you wish to replace a policy with another, you should contact C1 Broker before cancelling the existing cover, to avoid gaps in insurance.
After submission: (1) C1 Broker confirms receipt of the request; (2) verifies the details provided; (3) may request additional information or documents; (4) forwards the request to the insurer, where applicable; (5) monitors the review of the request; (6) communicates the insurer’s response to the client. Final confirmation depends on the insurer.
Yes. If your concern relates to C1 Broker’s conduct as intermediary/broker — for example, information provided, handling of the request, communication, administrative processing or forwarding to the insurer — you may submit a complaint to C1 Broker through the channels indicated on the website. However, if your concern relates to the decision on the insurance contract itself — such as acceptance or refusal of cancellation, non-renewal, annulment, effective date, premium charge, refund or issue of policy documents — the complaint must be directed to the insurance company that issued the policy, as it is the insurer that is competent to decide on such matters. If unsatisfied with the response, you may also have recourse to the Electronic Complaints Book, the ASF – Insurance and Pension Funds Supervisory Authority, and the CIMPAS – Insurance Information, Mediation, Ombudsman and Arbitration Centre, where applicable.