Insurance companies to inform consumers of all COVID-19 insurance terms: regulator’s clarifications
The Bank of Russia recommends that insurance companies provide consumers with as much detailed and clear information as possible on terms and conditions of agreements related to COVID-19 risk insurance. They should explain the key parameters of such agreements, including the conditions for the occurrence of an insured event, the duration of insurance protection, and clearly indicate exceptions to insurance coverage and other important nuances. A respective letter has been sent to all insurance companies.
The regulator has checked how insurance companies sell policies that cover risks of getting infected with the coronavirus infection. It was found that people sign agreements whose terms they do not completely understand; they do not receive clear explanations regarding what is considered an insured event (it can be determined differently) and how to record it to receive compensation. As a result, insurance companies often deny payments to insured persons referring to contract nuances.
Moreover, the Bank of Russia draws the attention of insurance companies to the fact that the practice of hard selling of such insurance policies when issuing loans or entering into other insurance agreements is unacceptable and subject to fines.