POLAND: Gefion's MTPL contracts remain valid, KNF announces

3 September 2020 —
Financial Supervision Authority of Poland announced that motor third party liability insurance contracts concluded or renewed until March 24, 2020 remain valid, and Gefion is obliged to consider reported claims and pay due compensation.

Contracts concluded after March 24, 2020, after the Danish financial supervision authority (Finanstilsynet) banned Gefion from concluding insurance contracts, were concluded in violation of the provisions of the Act of May 22, 2003 on compulsory insurance, the Insurance Guarantee Fund and the Polish Bureau Motor Insurers. This means that within the framework of the above-mentioned no insurance cover is provided during the period of insurance contracts.

This results in the lack of continuity of insurance, as a result of which the Insurance Guarantee Fund (UFG) is entitled to impose a fee, and in the event of damage caused by the vehicle movement, the driver of the motor vehicle is obliged to cover the damage caused in the accident.

In the event of a possible declaration of bankruptcy of Gefion, motor vehicle liability insurance contracts will expire after 3 months from the date of declaration of bankruptcy of this insurance company. After the expiry of the above-mentioned 3-month period, the owner of a motor vehicle insured with Gefion will be obliged to conclude a new motor third party liability insurance contract.

Source: knf.gov.pl