Poland Insurance Information

CIA link to demographic/economic data on Poland

General Poland Insurance Information

• Compulsory Insurance:
  
  1. Third Party Automobile Liability (minimum limit Euro 1.5mn [US$1.8mn) for bodily injury per accident and Euro 300,000 [US$360,000] for material damage per accident;
  2. Farmers’ Third Party Liability;
  3. Fire Coverage for Farm Buildings;
  4. Workers’ Compensation (Social Security Scheme covering health and pensions);
  5. Nuclear Liability.
• Non-Admitted Insurance:
  Prohibited except for Marine Cargo and for Liability for foreign contractors operating in Poland and coverages not available in the local market. The latter is subject to Ministry of Finance approval.
• Policy Wordings & Rates / Tariffs Controlled:
  Wordings and tariffs are to be approved by Government authorities. Third Party Automobile Liability is controlled.
• Policy Language:
  Polish.
• Types of Insurance Restricted to Government Institutions:
  Workers’ Compensation (Social Security).
• Policy Currency:
  zloty (PLN). U.S. $ insurance is not allowed.
• Currency Restrictions / Exchange Controls:
  Restricted.
• Policy Period:
  Annual.
• Cancellation Provisions:
  No automatic renewal. Check policy cancellation provisions as no particular rules apply.
• Premium Tax, etc. paid by Insured:
  There are no general taxes or charges imposed on policyholders.
  The Insurance Company pays:
  
  1. 1.6%% on Automobile Liability (paid to a guarantee fund);
  2. 10% is paid on Agricultural Property classes to the National Fire Brigade.
  3. 0.075% of gross premium to finance KNUiFE, which distributes part of this revenue to support the insurance ombudsman
  4. 0.2% on gross premium to the Polish Chamber of Commerce – this amount has probably increase to help pay for a motor insurance datatbase.
• Insurance Companies:
  Since January 1, 1999, a number of Insurers have been allowed to operate in Poland.
• Brokers:
  Many large foreign brokers are represented in the market. Brokers must be locally licensed. Most indigenous brokers operate as agents.
• Brokerage Commissions:
  N/A
• Broker of Record Letters:
  No legal requirement. It is suggested that BORs be filed with Insurers.
• Reinsurance:
  Strictly regulated A: Not more than 20% of premiums may be ceded to foreign reinsurers belonging to the same group of companies. B: Not more than 15% may be ceded, other than as A, to any one reinsurer. C: Not more than 25% of the premium may be ceded to reinsurers in any one country. There are no pooling arrangements. D: Not more than 90% of Proportional reinsurance may be ceded. There is a 20% withholding tax on reinsurance premium.
• Local Natural Hazards:
  None known.
• Other Information:
  

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, aircraft and explosion. Extended Coverage perils are available in the market for an additional premium charge. All companies have incorporated average clauses into their policies.
• All Risk:
  Not generally available except for Contractor related risks.
• Coinsurance:
  Available.
• Blanket Insurance:
  Not available.
• Business Interruption:
  UK Loss of Profits wording available. Demand for cover is increasing.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: Negotiable - maximum credit up to 40%.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Local or German Machinery Breakdown wordings.

General / Public Liability

• Available Wordings:
  Local. Product Liability is available. No longer automatically included under the standard Fire policy. Liability for Neighbors and Tenants has to be in the General/Public Liability policy.
• Comments:
  Policies can be written on either an occurrence or claims made basis.

Automobile / Motor

• Compulsory Limits:
  Bodily Injury - ECU600,000. Property Damage is not compulsory.
• Comments:
  Coverage applies to the Insured and any licensed individual driving with the Insured’s permission. Passengers (excluding close relatives) are considered Third Parties.

Workers’ Compensation

• Comments:
  All employees are protected under the Government’s Social Security Scheme. Medical Expenses and Occupational Disease benefits are payable under the Scheme.

Marine

• Available Wordings:
  London Market Cargo, War & Strikes clauses are used, as are the War & Strikes rates..

Crime

• Available Coverages:
  Limited but some Insurers will write fidelity, burglary, etc.