Mutual company: a cancelable health insurance contract
A mutual company: what is it?
Company mutual insurance is a contract of health insurance contracted by an employer to cover the health costs of its employees. provided by law ANI 2016 or the Work Safety Act, all private companies, whether small, medium or large, must subscribe to mutual health insurance. It is also a kind of supplementary health insurance, as it replaces social security in some cases. Indeed, the mutual society covers the entirety of the health expenses of all employees that are not borne by social security.
Although the price of mutual health insurance varies according to the entity offering it, this health insurance contract still has advantages. First, the effects of the company’s mutual insurance contract extend to the worker’s family. The worker and his/her household can then benefit from reimbursement of their healthcare expenses by the company’s mutual fund in the event of illness. In addition, the company’s loan is among the health insurance contracts that exist. Its price is actually lower compared to individual health insurance. Finally, the company loan protects the rights and benefits of employees, as it can be terminated. However, its termination is subject to conditions.
The possibility of termination of the mutual company by employees
Although the mutual company is mandatory, it can, however, be terminated by workers when they decide to terminate the employment contract or when they are fired. The loan can then end in the event of dismissal or dismissal of employees. Employees can also terminate their health insurance contract when they plan to move to another country. Going abroad is therefore a good reason to break off the company’s loan.
And, finally, if the employee is married to a spouse affiliated with another supplementary health insurance, and this supplementary health insurance predates the employee’s mutual insurance, his spouse’s supplementary health insurance expires. The worker can then terminate their health insurance contract and benefit from that of their spouse. As soon as the employee invokes one of these reasons at any time to terminate his contract, he will win his case. However, it should be noted that he remains bound by the obligation to give 3 months notice before the date of termination of the insurance contract arrives.
Also read: Reimbursement for the health insurance fund for plastic surgery.
The possibility for the employer to terminate the mutual partnership
The employer can also terminate the mutual company at any time. In most cases, the employer decides to terminate this insurance contract when it finds that the price of this insurance has risen too much or when it finds that its employees are at a loss in relation to the costs covered by the health insurance. However, like the employee, the employer must give employees at least 3 months advance notice of their decision. To terminate the mutual, the employer must send a mutual health insurance termination request letter to the entity or insurer in question. The letter will be addressed to the latter and will be sent by registered mail with acknowledgment of receipt.
It should be noted that the health insurance policy termination request templates are available on the internet for those who have no idea what it is like. There are downloadable templates that must be filled out and there are templates that can be copied and handwritten. While the mutual company can be terminated at any time by the employer, there is still an opportune time to do so. The employer can then wait for the one-year contract period to expire. And you will have to give 2 months notice or you can terminate the contract before one year when you find that the substantial elements of the contract have been unilaterally modified by the entity and it is no longer convenient for you. The employer will then benefit from an exemption period of approximately 3 days.
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