How long does an insurance company in Malta have to pay out a valid claim?
- 07.08.2026
I have an ongoing home insurance policy in Malta that I’ve paid for the full year upfront, but I’ve just received notice from the insurer that they’re cancelling my policy partway through the term, citing a change in their underwriting criteria. Can they actually do this without my agreement, and what happens to the portion of my premium I already paid?
Whether an insurer can validly cancel a policy mid-term generally depends on the specific terms of your policy contract, since Maltese insurance regulation connected to the Insurance Business Act, Chapter 403 of the Laws of Malta, and the Insurance Distribution Act, Chapter 487 of the Laws of Malta, generally requires insurers to act fairly and transparently, but the actual contractual right to cancel mid-term, and under what specific circumstances, would typically be set out in your policy's own terms and conditions, meaning you should carefully review whether your policy actually includes a provision allowing the insurer to cancel in the circumstances they're citing, such as a change in underwriting criteria. If the policy does permit cancellation, insurers are generally required to provide adequate notice and to refund any unused portion of your premium on a pro-rata basis reflecting the remaining period of cover that will no longer be provided, since retaining payment for coverage that will no longer actually be provided would not be appropriate. If you believe the cancellation is not properly justified under your policy terms, or if the insurer is not offering a fair proportional refund of your prepaid premium, you can raise a formal complaint with the insurer and, if unresolved, escalate to the Office of the Arbiter for Financial Services for an independent review of the matter.
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