On 17 December the Polish Financial Supervision Authority submitted for public consultation a draft of new recommendations on claims handling in motor insurance.
The new recommendations are to replace the guidelines for the settlement of motor insurance claims adopted on 16 December 2014.
The recommendations specify the requirements resulting directly from the applicable provisions of law, from the unquestionable rulings of the Supreme Court indicating the desired conduct of insurance companies and from the supervisory expectations towards insurers regarding the organization and management of the claims handling process. The document prepared by the Polish Financial Supervision Authority expresses the expectations concerning the solution of the most important issues, from the point of view of the Polish Financial Supervision Authority, in the area of claims handling in respect of public liability third party liability, motor hull insurance, accident insurance and assistance.
The scope of recommendations covers the key areas included in the 2014 guidelines: timely payment of benefits, payment of benefits in compliance with the full compensation principle, respecting information obligations towards entitled parties, supervision and control over the claims handling process on the part of insurance company bodies – internal control in the claims handling process and supervision and control of insurance companies over external entities which have been entrusted with claims handling activities.
Recommendations have been expanded to include new areas in which the Financial Supervision Authority believes it is appropriate to indicate the proper practice, in particular: the insurance company arranging the loss adjustment process in order to restore the vehicle to its condition from before the loss occurred as part of the so-called comprehensive motor vehicle loss adjustment service; offering the injured parties the possibility to rent a replacement vehicle; reimbursing the expenses incurred in order to have an opinion prepared by a third party; and concluding settlements.
