NBS Recommends Postponement of Payment of Due Premium

The National Bank of Serbia (NBS) recommend to all insurers to offer deferred payment of due premium, in a way that will not lessen the beneficiaries’ rights stipulated by their insurance contracts.

With a view to protecting the health of insurance service beneficiaries and the people working in insurance and to preventing further spread of the coronavirus (COVID-19), the NBS has taken the necessary steps that will, on the one hand, protect the rights and interests of insurance service beneficiaries and enable them to continue using insurance services, and, on the other, provide for the smooth functioning of the insurance sector and the exercise of supervision over its operation.

As announced on the NBS website, in case of deferred payment, the beneficiaries would settle the insurance premium that fell due for payment during the state of emergency later on, with no interest charged on outstanding due premium installments, these installments being distributed over the remaining insurance period.

It should be noted, the NBS says, that the deferment of insurance premium installments by no means extends the validity of insurance – it only and exclusively postpones the payment of due installments.

– Besides, we want to remind all our citizens – the beneficiaries of life insurance, voluntary health insurance, and particularly travel insurance, who happen to be abroad and have concluded insurance contracts with domestic insurance undertakings, to additionally check whether their insurance policies also cover COVID-19, in what manner those contracts, i.e. insurance terms define the covered risks, as well as the pertaining exclusions – the NBS says on its website.

The NBS notes that further action in a particular case will depend on the manner in which the insurance contract (insurance terms) defines the risk coverage.

– If the concluded insurance contracts do not envisage the coverage of COVID-19, we advise our citizens to communicate with their insurers electronically and to try to obtain more information about the agreed risk coverage and exclusions, as well as to find out whether the insurers happen to offer insurance that provides such coverage, i.e. to explore the possibility of negotiating such additional coverage, and to see whether their travel insurance policies can be extended.

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