September 27 2016
In 2013 the Federal Parliament rejected a bill for a total revision of the Federal Act on Insurance Contracts, with an order to the Federal Council to elaborate a partial revision on selected subjects. The Federal Council drafted an amended bill and recently initiated consultation proceedings on the proposals. Hence, this draft constitutes the council's second attempt to adapt the law to existing standards and the need of policyholders for reasonable and feasible insurance protection. The consultation proceedings will end on October 27 2016.
With a view to balancing the obligations of policyholders on the one hand and insurers on the other, the suggested changes in the draft proposal include the following items:
Greater account should be taken of electronic business transactions by allowing proof by text for certain notifications as an alternative to signed documents. From a formal and editorial viewpoint, the draft revised act includes section titles for a clearer structure and standardised terms for better readability.
According to the Federal Financial Department's explanatory report, the attractiveness of the insurance market in Switzerland will be bolstered by the draft proposal for a partially revised act. The draft is said to ensure greater legal certainty because it aligns the statutory basis with current practice. It is also considered to be more consumer friendly, which increases the attractiveness of insurance cover. This in turn is expected to lead to an increase in market volume due to a growing amount of insured risks. It remains to be seen whether this draft will be well received by the insurance market, trade associations, political parties and other insurance market participants.
For further information on this topic please contact Markus Dörig or Alexandra Bösch at BADERTSCHER Rechtsanwälte AG by telephone (+41 44 266 20 66) or email (email@example.com or firstname.lastname@example.org). The BADERTSCHER Rechtsanwälte AG website can be accessed at www.b-legal.ch.
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