The company’s practice of extending liability insurance agreements may be infringing consumer rights. Poland’s Office of Competition and Consumer Protection (UOKiK) has initiated proceedings against Link4 after receiving information from the Financial Ombudsman.
Motor vehicle owners are required to have liability insurance. When clients do not terminate their agreements, which are signed for 12-month periods, the insurance company automatically extends them for another year. Before the contract’s expiration date, the insurance company is required to send clients information on insurance for the coming period, including the amount of the next year’s premium. To eliminate the occurrence of motor vehicle owners holding double liability insurance, they may terminate an agreement concluded by automatic extension if they hold valid liability insurance from another company.