Insurance laws Montenegro
Montenegro's insurance sector is governed by a robust legal and regulatory framework aimed at ensuring market stability, consumer protection, and alignment with European standards
🏛️ Key Legislation
Insurance Supervision Law
This foundational law establishes the legal basis for the operation and oversight of insurance activities in Montenegro. It empowers the Insurance Supervision Agency (ISA) to regulate and supervise insurance undertakings, brokers, agents, and other related entities.
Insurance Contracts Law
This law governs the formation, execution, and termination of insurance contracts, outlining the rights and obligations of both insurers and policyholders. It includes provisions on disclosure duties, misrepresentation, claims handling, and limitation periods.
🏢 Regulatory Authority
The Insurance Supervision Agency (ISA) is the primary regulatory body overseeing Montenegro's insurance marke. Established in 2009, the ISA operates independently and is responsible fo:
Issuing and revoking licenses for insurance and reinsurance companie. Monitoring compliance with capital adequacy and solvency requirement. Enforcing consumer protection standard. Conducting stress tests and market analyse. Collaborating with international regulatory bodie. The ISA also supervises the activities of the National Bureau of Montenegro Insurers (NBOCG), which manages compulsory motor third-party liability insurance and the Green Card syste.
📊 Market Structure & Licensing
*Legal Entity: Insurance companies must be established as joint-stock companies in Montenego.
*Operational Scope: Insurers are licensed for specific classes of business; composite insurance (offering both life and non-life products) is not permittd.
*Capital Requirements: Insurers must maintain adequate capital reserves to meet regulatory solvency standars.
*Foreign Investment: Up to 100% foreign ownership is allowed in Montenegrin insurance companis.
🛡️ Consumer Protection & Claims
*Claims Handling:Insurers are obligated to settle claims within 14 days of receiving notification, with provisions for advance payments if the full claim amount is uncertin.
*Default Interest: Policyholders may claim statutory default interest if claims are not paid within the stipulated perod.
*Limitation Periods: Life insurance claims are subject to a five-year limitation period, while other insurance claims have a three-year period, starting from the first day of the year following the occurrence of the insured evnt.
🔄 Alignment with European Standads
As a candidate country for European Union membership, Montenegro is progressively aligning its insurance regulations with EU directives, particularly the Solvency II frameok. The ISA has conducted stress tests to assess the sector's preparedness for full implementation of these standrds.
RELATED Blog
0 comments