International Union insurance’s license of operation is being permanently revoked

International Union insurance’s license of operation is being permanently revoked

Curtain closing for the the insurance company International Union, since the Bank of Greece decided to permanently revoke its license of operation.

The Bank has instigated all relevant procedures in order to secure the interests of the secured parties, while Antigone Vafiadou was appointed to supervise the insurance liquidation, in charge of upholding the legal procedures.

International Union dealt with insured losses, emphasising in the automotive sector. Bank of Greece ruled that since the company presented a significant lack of capital, it resulted to its lack of the necessary minimum solvency margin, insufficient insurance placement, which are necessary law requirements to secure the interests of the insured parties entitled of compensation.

On 28 June 2013, Bank of Greece assumed administrative measures against the company, to secure the interests of the insured parties. Among other things, the company’s assets was withheld, revoking the capacity to conduct new insurance operations, up until the deadline provided to materialise the necessary Increase of Stock Capital. During this extension, the company was unable to reinforce its capital so as to cover the above mentioned deficits.

Car insurance contracts are in effect for 30 days, counting from the day the company’s license was revokes. Within this period, the car-owners have to seek insurance at other companies. In case an accident is caused during this 30day period, the victim will be compensated by the “Auxiliary Fund Liability for car accidents” (private entities).

The Liquidator will be reimbursing the insured parties for the amount paid and corresponds to the period from the date of revocation of the company’s operating license until the expiry of the policy (unearned premiums) (article 3, paragraph 6, Legislative Decree 400/1970). Pending litigation will be carried on by the Auxiliary Fund.

Insurance contracts for damages in other sectors: 30 days following the permanent revoke of the company’s license of operation, all its insurance contracts are automatically dissolved. Parties claiming compensation from insurance contracts categorised to insurance claims for other branches, such as the paid – unearned – premiums, will be settled upon declaring their claims to the Liquidator.

Click here for the Greek article.

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