In 2016-2017, MetLife Towarzystwo Ubezpieczeń na Życie i Reasekuracji offered individual life insurance with unit-linked insurance (UFK) bearing the name MetLife Projekt Jutro. Contractual provisions defining the so-called allocation fees raised doubts for Tomasz Chróstny, President of the Office for Competition and Consumer Protection.
Under the so-called allocation fee, in the first year of the contract, the company deducted 75 percent of the invested premium, and 45 percent in the next year. This money was regained by the consumer gradually, in the form of the so-called investment premium. The full reimbursement was made around the 14th year of the contract. In addition, the company charged other fees e.g. administrative fees.
„The challenged clauses were intended to make it unprofitable for the consumer to withdraw from the life insurance contract with UFK. Meanwhile, under the law, the consumer has the right to terminate such a contract at any time, subject to a notice period, without any additional conditions. For example, it may state after a year or two that the results achieved by the funds do not guarantee a profit or even indicate the possibility of incurring a loss. In such a situation, the consumer should be able to terminate the contract without incurring excessive costs” said Tomasz Chróstny.
MetLife was fined PLN 5,231,684. Moreover, the company must inform consumers about Tomasz Chróstny’s decision, i.e. the fact that the challenged clauses should be treated as if they were not included in the contract. Victims will be able to rely on this decision in court after it becomes final.
Currently, the decision of the President of the Office of Competition and Consumer Protection is not final. UFK may appealed this verdict.
