Group insurance agreements are valid

Group life insurance agreements in Poland will not be cancelled, and the clients who enjoy such a type of cover do not have any reason to be anxious. Press releases concerning the judgment of the European Court of Justice (ECJ) of 15 July against Germany, are erroneously suggesting this judgment to pertain to Poland.

The verdict issued by the ECJ pertains exclusively to Germany and, also exclusively, to the German occupational pension schemes. It has nothing to do with the Polish group life insurance agreements. – The verdict issued within a member state’s infringement procedure is binding for that state against which it has been passed. In this case it pertains to Germany only – explains Jan Grzegorz Prądzyński, Board President of PIU.

The clients who have concluded group life insurance agreements can be calm about their insurance cover. Press articles also mention the interpretation of the Polish Public Contract Office (UZP), according to which the offer for group life insurance for employees should be chosen in Poland by way of tender procedure. – Unfortunately, such an interpretation is disadvantageous for insurers’ Polish clients. The price of a service is often the main criterion in case of public contracts. The problem is that in the case of insurance the price should not be the only criterion of the offer choice. Taking care of employees’ insurance is connected with ensuring them the widest possible scope of cover matched to their needs. The wider the scope is, the higher is the premium but it is also connected with higher sums insured and the warranty that the insurance covers a wider spectre of risks – says Jan Grzegorz Prądzyński. In PIU’s opinion, concluding occupational insurance agreements according to the rigors of Public Contract Law could result in a relatively narrow scope of cover for the employees and with relatively low insurance sums. Such offers would really have a better chance to meet the price criterion but, unfortunately, to the harm of the employees. Above 360 thousand group life insurance agreements were concluded by the end of 2009.