Insurance laws Croatia
The legal framework for insurance in Croatia is primarily governed by the Insurance Act (Zakon o osiguranju) and the Act on Compulsory Insurance within the Transport Sector (Zakon o obveznim osiguranjima u prometu). These laws are further supplemented by the Civil Obligations Act (Zakon o obveznim odnosima), which sets out the general principles for insurance contracts.
Key aspects of Croatian insurance law include:
1. Regulatory Oversight:
Croatian Financial Services Supervisory Agency (HANFA): HANFA is the primary regulatory body responsible for supervising the insurance market in Croatia. Its role is to ensure a fair and stable market, and to protect the interests of policyholders.
HANFA is responsible for licensing insurance and reinsurance companies, as well as intermediaries (agents and brokers), and for overseeing their compliance with the law.
2. Compulsory Insurance:
Several types of insurance are mandatory in Croatia, including:
Mandatory Health Insurance: All persons with permanent residence in Croatia are required to have this insurance, which is provided by the Croatian Health Insurance Fund (CHIF).
Motor Vehicle Liability Insurance: Vehicle owners must have insurance to cover damages they may cause to third parties. This insurance must be valid in Croatia and in the territories of countries within the "green card insurance system."
Other compulsory insurance types include aviation, marine, and professional indemnity liability insurance for certain professions.
3. European Union Influence:
As a member of the European Union, Croatia's insurance legislation is harmonized with EU law.
This includes implementing directives such as Solvency II (which establishes solvency and capital requirements for insurance companies) and the Insurance Distribution Directive (IDD).
The harmonization with EU law allows for "passporting," which enables an insurance company authorized in one EU member state to operate in Croatia without needing a separate authorization from HANFA.
4. Insurance Contracts:
The Civil Obligations Act governs the general principles of insurance contracts.
Misrepresentation and non-disclosure: The law outlines the consequences of providing untrue information or concealing important facts. The insurer may have the right to terminate the contract or adjust the premium depending on whether the misrepresentation was intentional or unintentional.
Specific rules for life insurance contracts address misrepresentation of the insured person's age.
5. Cross-Border Services:
The legal framework facilitates cross-border insurance services for companies from other EU/EEA states.
EU-based companies can offer services in Croatia by notifying their home country's supervisory body, which then forwards the information to HANFA.
This overview provides a general summary of the insurance laws in Croatia. For specific details and the most up-to-date information, it is essential to consult the official legislation and regulatory sources.
RELATED Blog
0 comments