New Swiss Laws: A Crucial Turn for Underage and Insured Indebtedness 

The Swiss Federal Council recently introduced significant changes to insurance legislation aimed at protecting minors and policyholders from indebtedness and making enforcement procedures more efficient. As of January 1, 2024, minors will no longer be liable for premiums and participations not paid by their parents, thus ending the current regime. In addition, insurers will be allowed to initiate a maximum of two enforcement procedures per year per insured, limiting the financial burden associated with enforcement expenses.

A major change is the opportunity granted to cantons to take over certificates of deficiency of assets, offering concrete help to free policyholders from debt. This change, effective July 1, 2025, allows cantons to take over 90% of the claims announced by the insurer, enabling policyholders to switch health insurers more quickly and to affiliate with those offering cheaper premiums.

To further limit the spiral of indebtedness, Parliament approved an amendment to the Law on Execution and Bankruptcy, which allows policyholders with income garnishment to instruct the execution office to pay current premiums, starting July 1, 2024.

Finally, considering that indebtedness often results from lack of adequate coverage, a personalized assessment offered by CMO Sick Fund Online is recommended. This is an important step in ensuring suitable coverage and preventing difficult financial situations.