Fund for the Protection of the Insured

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The Fund for the Protection of the Insured (FPI)

The Fund for the Protection of the Insured (FPI) was created in 1999 in order to protect the interests of insured persons in case of an insurance company’s bankruptcy.
The assets of the FPI consist of deductions in the amount of 0.1% of the gross sum of insurance premiums received from physical persons for the classes of insurance specified by law.

Only a policyholder, natural person, may receive insurance indemnity in case of insurer default:
1) for life insurance policies, except for insurance related to unit-linked life insurance contract – 100% of the insurance indemnity, but no more than 15 000 euro per insured person
2) for other classes of insurance as established by law – 50% of the insurance indemnity, but no more than 3000 euro per insured person.

The Commission organizes the collection of assets in the FPI and the payment of guaranteed insurance indemnity. Whereas the Consultative Council monitors collection of assets in the FPI and the payment of guaranteed insurance indemnity. The guaranteed insurance indemnity is paid only after initiating bankruptcy procedure at the insurance company. The Commission implements the creditor’s right of demand to insurer.