On July 18, the Polish Financial Supervision Authority (KNF) published the final version of its recommendations regarding claim settlement in motor insurance. This will replace the ones adopted in December 2014. It is expected that the recommendations will be applied by insurance companies no later than November 1, 2022, Gazeta Ubezpieczeniowa reports.

By introducing recommendations, the regulator wants to ensure compliance of the insurance companies' activity with the law, prevent infringement of the interests of policyholders/insureds, reduce the risk inherent in the activities of insurance companies, create a basis for development of a standard of conduct for insurance companies in the field of claim settlement in motor insurance.

The recommendations specify requirements arising directly from the applicable legal provisions, rulings of the Supreme Court indicating the desired procedure of insurance companies, the need to protect individual interests of policyholders, the supervisory expectations regarding organization and management of the liquidation process, compensation of damages from third party liability of motor vehicle owners, Motor Hull, as well as accident insurance and assistance.

The recommendations cover key areas previously included in the 2014 guidelines: timely payment of benefits, payment of benefits in compliance with the principle of full compensation, respecting information obligations towards the entitled persons, supervision and control of the claim handling process by insurance companies, internal control in the loss adjustment process, supervision and control over external entities entrusted with claim handling activities.

The full text of the recommendation is available on the KNF website.