In the month of November in the year just ended, the Ivass (Institute of Private Insurance Supervisory - www.ivass.it) had intervened in the field of long-term insurance policies publishing on its website a statement of Service Consumer Protection with the subject "multi-year contracts in non-life insurance. Evidence of the discount in the policy and return policy ", addressed to the Insurance Companies.
The Ivass had marked a negative practice of Insurance Companies and their intemediari not clarify adequately, in long-term contracts, the discount applied to the face of the most recognized term of the policy; the condition that in some cases it is done generically assert the insured from having the benefit of a discount off the annual fee; the lack of reference to the consequences of signing a multi-year contract in terms of the possibility of withdrawal.
In the opinion of the Supervisory, the lack of explanation of the discount, prevents the insured to actually compare the reduction of the premium applied to multi-year contract, with respect to the award of a corresponding annual policy.
The above compromises the interest of the insured and is in conflict with the principles of transparency and fairness, enshrined in Article. 183 (Rules of Conduct) of the Code of Private Insurance.
Therefore, the Ivass had invited the companies and their intermediaries to adapt to the directions given in the above statement of opportunities, by the end of the year just ended.
Taking a cue from the press, report the two practical guidance for the insured / Consumers:
1) Always ask your broker to indicate policy, specifically and with adequate evidence graphics, the extent of reduction in premium exercised for the multi-year contract;
2) Remember that in the face of the first such reduction in premium, you can not exercise the right of withdrawal from the contract, for the first five years of the contract term.
Alex Gaetani
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