Code of ethics in insurance activity
This Code of Ethics defines the rules of conduct for insurers, under which subscribers insurers – Members of the League of Insurance Organizations of Ukraine, taking the responsibility to demonstrate loyalty and honesty to each other and to their contractors (policyholders, insured persons, intermediaries, competitors, etc.) as well as the positive impact on solving social problems and provide public benefit.
1. General ethical requirements
1. These ethical principles applicable in the circumstances of both the Member LIOU1 – the insurance company and the persons representing it.
2. The insurance organization and the person representing it, including its employees and insurance intermediaries must comply, in addition to legal requirements, ethical standards, due to specific proceedings of insurance.
3. Insurers are guarantors of stability, reliability and balance in society, they must comply strictly with their obligations for the duration of the contract, to ensure unconditional fulfillment of its terms and not try to find reasons to view your contracts.
4. Insurance organization should refrain from any actions that violate the market economy and undermine confidence in the insurance company and the persons acting on its behalf.
5. The insurer and the person representing it must carry out insurance activities:
1.5.1. according to the laws, rules and regulations of the insurance contract of insurance,
1.5.2. in the interests of the client,
1.5.3. with due diligence.
6. The insurer must take care of their financial reliability and abandon the policy of unwarranted reduction of insurance rates, which does not ensure the availability of assets sufficient to fulfill the insurer obligations.
2. The duties of insurers towards customers
2.1. Insurers need with compassion and understanding to treat each case of damage to any customer, and consider the feelings and emotions of people who find themselves in a difficult situation and the actions that can lead to the deterioration of much greater in terms of adverse effects .
2.2. In particular, insurance companies should not:
2.2.1. forcing the client to abandon the applicable terms of the contract or change them (without the consent of the client)
2.2.2. Customer hinder decision of choosing or changing insurer, and force the client to implement such a change,
2.2.3. disclose any information on customers and insurance contracts, except as required by law.
2.3. The insurance organization is obliged to properly care for the protection of customer information and concluded agreements with them insurance.
2.4. The information provided by the insurer must be correct, complete, accurate and understandable, and should not be misleading. Any exaggeration or concealment prohibited.
2.5. Insurers have to settle insurance claims under the law. Such a settlement should be as active, based on the nature and extent of damage.
3. Responsibilities of insurers to ensure the quality of services provided by them
3.1.Insurers obliged to take care of the quality of services provided by them, guided in particular by the following principles:
3.1.1. offer the client a set of precautionary measures that help limit risk and hence insurance costs,
3.1.2. inform the client according to the amount of services it provided, the principles and rules which are applied in insurance activities, and explain the related rights and obligations in a manner that promotes the adoption of customer management solutions,
3.1.3. Do not use in advertising language, which can introduce potential customers to misleading, particularly in regard to the amount of insurance coverage and the insurance contract and the purpose of the contract of insurance,
3.1.4. provide customer information to which he is entitled under the laws of Ukraine,
3.1.5. offer customers insurance that best suits its needs and possibilities.
4. Proper implementation insurer obligations under the insurance contract
4.1. The insurer is required to properly perform the duties arising from the rules and contract.
4.2. The insurer, acting under paragraph 4.1., should be guided, in particular, the following rules:
4.2.1. ensure that its employees and persons acting on its behalf, have appropriate training, know and correctly understand their responsibilities to customers,
4.2.2. avoid conflicts with customers, in particular by:
a) informing a loyal customer of situations where conflict may arise
b) determining the course of action in such situations and their consequences;
4.2.3. take care of the customer and provide him with professional assistance throughout the term of the contract.
5. Obligations of the insurer in relation to competitors
5.1. Insurers should work together in good faith to ensure mutual interests, adhere to established rules and procedures to overcome disagreement among the participants of the insurance market, the agreements reached and to prevent criticism of competitors.
5.2. Insurers must show solidarity in the fight against fraud and moral hazard, do not take on insurance risk from individuals and organizations that abuse the trust insurers. Insurers should mutually exchange information, which is connected with the duties of unscrupulous insurers.
5.3. Marketing, advertising and promotion of insurance is necessary to legally flawless – the principles of fair competition, do not abuse the confidence of policyholders, did not use their inexperience and lack sufficient knowledge to obtain undue advantage (profit) not to use negative information for other market participants to create or increase their reputation and obtain the trust of customers.
5.4. Insurance organization must respect the principles of competition, in particular, it must not:
5.4.1. complicate competitors access to the market,
5.4.2. persuade workers competing insurance organizations and other related parties to actions that could harm the property interests of insurers,
5.4.3. collect and disseminate false or incomplete information on competitors,
5.4.4. use advertising that can be misleading or contrary to generally accepted norms and rules,
5.4.5. harm the good reputation of competitors,
5.4.6. enter into contracts with other insurers that be doing damage to property interests of policyholders,
5.5. In cooperation with third parties and entities insurance organization must:
* Timely and properly fulfill its obligations
* Ensure the privacy of confidential information in accordance with the legislation of Ukraine,
5.6. Make every effort to resolve disputes through negotiations.
5.7. Insurers should be aware that they are part of Ukraine’s insurance market that requires highly positive and professional image of the insurance industry and achieve important social objectives. Quality of services provided, the insurer confirms its collegiality as a member of the insurance community, and mutual solidarity in the framework of healthy competition while respecting the principles of market economy.
6. Interaction between insurers and intermediaries
6.1. The insurer assists insurance agents who collaborate with him.
6.2. Insurance organization providing such assistance must be guided, in particular, the following rules:
6.2.1. clearly establish eligibility criteria and risk conditions of cooperation,
6.2.2. provide full information on insurance products, to eliminate doubts about the offered products or provide necessary instructions and guidance on their implementation,
6.2.3. provide full information necessary for the conclusion and execution of the contract.
6.3. Insurance agents have to act so as not to prejudice the interests or reputation of the insurance company.
6.4. The insurer does not have to offer intermediary unstable and unfair conditions of cooperation.
6.5. The insurer should assess the real situation regarding deposit insurance intermediaries in the insurance business on the basis of objective criteria, following the principle of equality in relations with intermediaries, collaborating with.
These objective criteria may also be related to the nature of the proposed assessment of risk intermediary client.
6.6. Insurance Company shall not affect the consumers in their choice of a free agent with which it cooperates.
6.7. An insurer shall maintain a register of their insurance agents.
6.8. The insurer is liable for the acts / omissions of their agents.
7. Obligations of the insurance company with respect to its workers
7.1. Insurers should encourage their employees to develop their intellectual abilities, providing them with appropriate training and education in their respective areas of insurance.
8. Duties of the insurer in relation to public authorities
8.1. Insurers must meet the requirements of legislation of Ukraine concerning them.
8.2. Insurers – members of the League of Insurance Organizations of Ukraine cooperate with public authorities through the League to represent their common interests.
8.3. Insurers should be especially attentive to attempts to use their services and branches in order to legalization of proceeds from crime. In this case, you must make a notification to the competent state authorities under the law.
9. Responsibilities insurer in relation to shareholders
9.1. The insurer must take care of activities that contributes to its development and creates added value only in invested capital (investments) shareholders.
9.2. Insurance organization must provide equality in relation to its members.
9.3. The insurer shall inform the shareholders about the appropriate way and time of any factor or decision that could cause a significant impact on the financial position of the insurance company; especially accounting documents that reflect the real state of the company.
10. Procedure in case of violation of ethical principles
10.1. In case of violations morals insurance organization or other person is drawn with a proposal for a decision on the matter to the League of Insurance Organizations of Ukraine.
10.2. LIOU Committee on Ethics after ascertaining facts of the case and obtaining statements of stakeholders, including all materials research and relevant recommendations refer the case to the Presidium of the League for the decision to exclude the insurer of the League for violation of the Code or the use of other measures .
10.3. Insurers that are members of the League of Insurance Organizations of Ukraine, by adopting this code of ethics in insurance activities, and commit themselves to it to make appropriate provisions in their internal documents, to ensure its compliance promotion and their employees.