Non-Renewal Policy Notification: How To Comply With Article 22 Of The Insurance Contract Law Without Depending On Registered Mail

In the insurance sector, not communicating on time can have very relevant legal and economic consequences. Non-renewal of a policy is not just an internal decision: if it is not correctly notified to the policyholder, the contract is automatically extended for an additional year, with full coverage obligation for the insurer.

This scenario, far from being theoretical, is one of the main sources of conflict between insurers, brokerages, and clients, especially when a claim occurs after a supposed cancellation.

The Legal Framework: Article 22 Of The Insurance Contract Law

Article 22 of Law 50/1980 on Insurance Contracts clearly establishes the requirements to oppose the extension of a policy.

From a legal perspective, there are two critical elements:

The Legal Deadline

The insurer must communicate its opposition to the extension with at least two months’ notice before the contract expiration date. Any communication outside that deadline has no effect.

The Burden Of Proof

The law does not only require communicating, but being able to demonstrate that the policyholder received the notification. In case of dispute, the burden of proof falls entirely on the insurer. If irrefutable receipt cannot be accredited, the notification is considered non-existent for legal purposes.

When these requirements are not met, the contract is understood to be automatically extended.

Consequences Of A Defective Notification

Non-compliance with Article 22 of the Insurance Contract Law exposes insurers to very specific risks:

• Automatic contract extension, even against the company’s will.
• Coverage obligation for claims, even if the client was no longer in the desired portfolio.
• Inversion of the burden of proof, making legal defense difficult.
• Client’s right to terminate without notice, in case of modifications not correctly notified.
• Vulnerability before the DGSFP, by not having admissible proof of communication.

In this context, the channel used to notify stops being an operational detail and becomes a strategic decision of regulatory compliance.

The Limit Of Registered Mail And Ordinary Email

Traditionally, registered mail has been the channel used for its irrefutable nature. However, its cost, slowness, and complexity make it unviable for managing large client portfolios.

Ordinary email, for its part, does not offer sufficient guarantees. It does not accredit the exact content of the message or its delivery, and its evidentiary value is easily challengeable both before a judge and before the Directorate General of Insurance and Pension Funds.

Registered Email As A Legal And Operational Alternative

Registered email in accordance with the eIDAS Regulation has been consolidated as a fully valid alternative to registered mail in the insurance sector.

In this model, eEvidence acts as a trusted third party, generating a certificate that accredits in an unalterable manner:

• The complete content of the message sent.
• The exact date and time of sending.
• Delivery to the recipient’s email server.

This technical evidence is already accepted by jurisprudence as irrefutable proof, as long as it guarantees integrity, traceability, and non-repudiation.

Beyond Non-Renewal: Other Critical Cases

The need for irrefutable notification is not limited to opposition to policy extension. There are other common cases where evidence is equally decisive:

Modification Of Conditions Or Premium

When a premium increase or a relevant change in conditions occurs, the insurer must inform with two months’ notice. If it cannot accredit it, the client has the right to terminate the contract without notice.

Cancellation Due To Non-Payment

Suspension of coverages requires prior irrefutable communication. Registered email allows documenting this process securely.

Communications In Claims Management

Instructions to the insured, summons, documentation requirements, or communications to the expert can be officially registered, avoiding subsequent conflicts.

Automation, Traceability And Reduction Of Litigation

Digital certification not only provides legal security, but also operational efficiency.
Thanks to integration via API, insurers can automate the mass sending of notifications from their management systems, maintaining a centralized and auditable record.

Having clear technical evidence allows resolving claims before the Insurance Ombudsman more quickly and significantly reduces litigation.

Frequently Asked Questions (FAQ)

Is It Mandatory To Use Registered Mail To Not Renew A Policy?

No. The law requires irrefutable notification, not a specific means. Registered email in accordance with eIDAS meets this requirement.

Is It Enough To Demonstrate That The Notification Was Sent?

No. It is essential to be able to accredit that the policyholder received the communication or that it was made available to them in an irrefutable manner. eEvidence provides this evidence.

Is Registered Email Valid Before The DGSFP?

Yes. By generating technical evidence by a trusted third party, it is admissible before regulatory bodies and courts.

Conclusion

In the insurance sector, not notifying correctly is equivalent to assuming unnecessary risks. Registered email allows complying with Article 22 of the Insurance Contract Law with the same evidentiary strength as registered mail, but with greater agility, lower cost, and full scalability.

Digitizing irrefutable notification is not a matter of efficiency: it is a key decision of compliance and legal protection for the insurer.