The amount of the redemption amount must be included in the life insurance contracts

An additional agreement to life insurance contracts indicating the conditions for paying the redemption amount (payment upon early termination of the contract), including its size, must be drawn up both when concluding new contracts and regarding existing ones, Beinsure Media writes.

Such a norm is included in the draft decree “On additional requirements for life insurance contracts”.

In the insurance contract, in addition to the amount of the redemption amount, the insurance rate and the insurance payment for each risk of survival and death, the frequency of payment of insurance premiums, investment income, the size of the conditions and terms for making payments, must also be indicated for each year of the contract in absolute terms or percentages, a complete list of documents for obtaining the redemption amount and the payment period, which cannot exceed 30 calendar days. For each day of delay in payment of the redemption amount, a fine is charged.

After registration of this order by the Ministry of Justice and its entry into force, insurers must send an additional agreement to existing customers indicating the redemption amount. At the same time, in the event of an unforeseen situation, for example, the absence of a client at this address (especially for long-standing contracts), sanctions will not be applied to the insurer. The regulator will provide a separate clarification on this issue.

By introducing additional requirements for life insurance contracts, Financial Services Commission will be able to protect the rights of consumers of both new contracts and those in force at the time the document comes into force; this will allow insurers to meet their obligations in full with fewer complaints.

According to the draft regulation, insurers will have to bring their activities in accordance with it within three months from the date of registration.