“LOSSEAR” Consortium

 

Organisation, Supervision and Solvency of Insurers and Reinsurers Act – “LOSSEAR”

Pursuant to the Organisation, Supervision and Solvency of Insurers and Reinsurers Act 20/2015 of 14 July, insurance undertakings are required to ensure that policies of existing insurance contracts on renewal comply with the changes this Act makes to the Insurance Contract Act and the Legal Statute of the Insurance Compensation Consortium.

  • AXA was already complying with some of the changes to the Insurance Contract Act, such as the description of coverage and exclusions (section 8(3)).
  • The deadline for deciding not to renew your policy has been cut from two months to one month if you do not wish to continue your insurance with us for the following policy year. The two-month notice period remains in place for insurance undertakings for cancelling a policy or making any changes to it (section 22 of the Insurance Contract Act).
  • In personal insurance, changes in circumstances relating to state of health will not be considered an aggravation of the risk (section 11).
  • In long-term care insurance (section 106(b)), only the policyholder may refuse to extend the policy.
  • You can view the list of service providers available under the free-choice scheme for health, long-term care and funeral insurance, subject to the limits and conditions set out in the contract, on our website (section 106(c))

Insurance Compensation Consortium.

In its Decision of 28 March 2018, the Directorate General of Insurance and Pension Funds approved the surcharges payable to the Insurance Compensation Consortium in respect of extraordinary risk insurance which the insured have to meet. The Decision also sets out the new coverage clause to be added to ordinary insurance policies and the information to be provided by insurers about policies included in the extraordinary risks coverage scheme. The tariff amendment will come into force on 1 July 2018.

This change entails an average 13% reduction in the amount of the surcharges for extraordinary risks, to be achieved by adjusting the rates for coverage against property damage (such as homes, condominiums and industrial risks), the rate for personal injury and the rate for coverage against financial loss.

All these new features or changes to insurance policies are fully binding and supersede any provisions in the policy that conflict with them. They will be applied automatically to contracts with no need for any action to be taken by the insured.