Publication date: 11.07.2024
Consumer protection in the insurance sector
The insurance industry plays a key role in ensuring financial stability and protecting the interests of both individuals and businesses. Reliable insurance provides peace of mind and confidence in the future, but it is important that consumer rights are properly protected. In this article, we will look at the main aspects of consumer protection in the insurance sector, the regulatory framework, consumer rights, protection mechanisms and the procedure for appealing against violations.
Legal and regulatory framework
Consumer protection in the insurance sector in Ukraine is regulated by several key legal acts:
TheLaw of Ukraine "On Protection of Consumer Rights":
- Defines the legal framework for consumer protection, establishes consumer rights, obligations of insurers and the procedure for handling consumer complaints.
TheLaw of Ukraine "On Insurance":
- Regulates the activities of insurance companies, establishes requirements for the organisation and conduct of insurance operations, rights and obligations of insurers and insureds.
Law of Ukraine On Financial Services and State Regulation of Financial Services Markets:
- Defines the legal framework for the provision of financial services, including insurance services, establishes requirements for financial institutions, the procedure for licensing and control over their activities.
Civil Code of Ukraine (CCU):
- Regulates contractual relations between insurers and insureds, defines the rights and obligations of the parties, and mechanisms for consumer protection.
Code of Ukraine on Administrative Offences (CUAO):
- Provides for administrative liability for violation of the requirements of the legislation on insurance services, non-compliance with standards and rules of activity in financial markets.
Criminal Code of Ukraine (CCU):
- Establishes criminal liability for crimes in the field of insurance services, including fraud, misrepresentation of policyholders and other offences.
National Commission for the State Regulation of Financial Services Markets (Natskomfinposlug):
- The regulatory authority that supervises and controls the activities of insurance market participants, establishes regulations, regulates insurance activities and imposes sanctions for violations of the law.
Fundamental rights of insurance consumers
The fundamental rights of consumers of insurance services, as defined by Ukrainian law, include:
Theright to accurate information:
- Consumers have the right to receive accurate, complete and understandable information about insurance services, contract terms, tariffs, commissions and risks.
Theright to security:
- Consumers have the right to safe insurance products and services that do not pose a threat to their financial situation and do not violate their rights.
Right tochoice:
- Consumers have the right to choose insurance services freely, without pressure or coercion from insurers.
Right to protection from unfair advertising:
- Consumers have the right to be protected from advertising that contains false or incomplete information, is misleading or violates ethical standards.
Theright to compensation for damages:
- Consumers have the right to compensation for damages in the event of material or moral damage caused by the improper provision of insurance services.
Theright to apply to courts and other consumer protection authorities:
- Consumers have the right to apply to courts, consumer protection authorities and human rights organisations to protect their rights.
Mechanisms for consumer protection
Ukrainian legislation provides for several mechanisms for consumer protection in the insurance sector:
Appeal to the insurance company:
- In case of violations of their rights, consumers have the right to apply directly to the insurance company with a request to eliminate violations, clarify the terms of the contract, provide additional information or compensate for losses.
Appealto the National Financial Services Commission:
- Consumers can file a complaint with the National Financial Services Commission, which supervises insurance companies, reviews complaints and takes enforcement action in case of violations.
Judicialprotection:
- Consumers have the right to file lawsuits to protect their rights, including claims for damages, compensation for non-pecuniary damage, and an obligation of the insurer to remedy the violation.
Contacting theState Service of Ukraine for Consumer Protection:
- Consumers can apply to this authority to review complaints and conduct inspections of insurance companies' activities in relation to consumer rights.
Pre-trial dispute resolution:
- The legislation provides for the possibility of pre-trial settlement of disputes between consumers and insurers, including mediation, arbitration and other forms of alternative dispute resolution.
Recourseto human rights organisations:
- Consumers can turn to human rights organisations and lawyers to protect their rights and interests.
Procedure for appealing against violations of consumer rights
In the event of a violation of consumer rights in the insurance sector, consumers have the right to appeal against such violations in accordance with the established procedure:
Appealto the insurance company:
- The first step is to address the insurance company with a request to eliminate the violations. The appeal may be submitted in writing, stating the circumstances of the violation, the consumer's requirements and evidence (contracts, account statements, correspondence, etc.).
Filing acomplaint with the National Financial Services Commission:
- If the appeal to the insurance company has not yielded any results, the consumer may file a complaint with the National Financial Services Commission. The complaint must contain a detailed description of the violation, evidence and the consumer's demands.
Appeal to the court:
- In the absence of results from the complaint, the consumer has the right to go to court. The court considers the claim, hears the parties, evaluates the evidence and makes a decision on the protection of consumer rights. The court may order the insurer to remedy the violation, compensate for damages, compensate for non-pecuniary damage, etc. So, whether you need a lawyer's advice or a lawyer's advice, it doesn't matter. Legal marketplace "CONSULTANT" will help you solve any problem! All the necessary services at any time: analysis of documents, legal analysis of the situation, legal analysis of the situation, written advice, verification of documents by a lawyer, legal analysis of documents, legal opinion of a lawyer, legal opinion of a lawyer, legal analysis. Are you looking for an online lawyer or a lawyer online? Choose CONSULTANT - a lawyer is always at your side!
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