Lithuania: Central Bank issued a warning to ERGO Insurance SE for violating payment procedures

Bank of Lithuania announced it issued a warning to ERGO Insurance SE - which operates in the country through a branch -, because as a result of an investigation, it identified that in administering insured events the insurer was not duly following the procedure for payment of the insurance benefit established in Article 98 of the Insurance Law.

According to the Law, "the insurance benefit must be paid within 30 days from the date when the insurer receives all the information important for establishing the fact, circumstances and consequences of the insured event and determining the amount of the insurance benefit", the market authority pointed out in a statement.

Where the insurer fails to pay the insurance benefit within 30 days from the date of the notice of the insured event due to the fact that the investigation is not finished, "each 30 days during the period of investigation the insurer must provide to the policyholder (beneficiary or injured third party) detailed information in writing about the progress of the investigation of the insured event, with the exception of the cases when the documents or information are missing only from the policyholder (beneficiary or injured third party) and the policyholder (beneficiary or injured third party) has already been informed about the documents or information that this person has to submit for the investigation of the insured event".

Thus, ERGO Insurance SE Lithuania branch has been requested to submit to the Bank of Lithuania "information on the implementation of the plan for the implementation of measures to improve the quality of the insured event investigation process by 8 January 2018".

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