Národná banka Slovenska has withdrawn the authorisation from the insurance undertaking NOVIS Insurance Company, NOVIS Versicherungsgesellschaft, NOVIS Compagnia di Assicurazioni, NOVIS Poisťovňa, a.s.
Národná banka Slovenska (NBS), by a decision of 1 June 2023, has withdrawn the authorisation to conduct insurance business granted to the insurance undertaking NOVIS Insurance Company, NOVIS Versicherungsgesellschaft, NOVIS Compagnia di Assicurazioni, NOVIS Poisťovňa, a.s., whose company registration number (IČO) is 47 251 301 and which has its registered office at Námestie Ľudovíta Štúra 2, 811 02 Bratislava and is registered in the Commercial Register maintained by Bratislava III City Court (Section: Sa; File number: 5851/B) (hereinafter ‘NOVIS’).
The operative part of the final decision is available here https://nbs.sk/vyroky/18575.
English language version of the operative part of the final decision will be added shortly. The Slovak version of the decision is the legally binding version, the English version is for informational purposes only.
As of the effective date of the decision, i.e. 05 June 2023, NOVIS is prohibited from conducting insurance business, with the exception of activities necessary to enforce its claims and settle its liabilities. NOVIS may not conclude new insurance contracts.
Information for policyholders:
- The withdrawal of the license has no effect on the existence of the current insurance policies. Until the entry of NOVIS into liquidation, policyholders have insurance cover, insurance and other claims under insurance contracts.
- NBS will petition a court to dissolve NOVIS, to commence liquidation proceedings against NOVIS, and to appoint a liquidator to conduct these proceedings; after that NOVIS will undergo liquidation in order to satisfy the claims of its policyholders and other creditors.
- The liquidator will be appointed by the court at random from a list of special insolvency practitioners designated for the liquidation of financial institutions, and NOVIS will enter into liquidation.
- The liquidator will act on behalf of NOVIS as of its entry into liquidation.
- The liquidator will inform all NOVIS’s policyholders (including those resident outside the Slovak Republic) of its entry into liquidation and request that they register their claims against NOVIS. Based on the liquidator’s request, claims must be registered. The liquidator will inform policyholders how and by when claims are to be registered.
- Policyholders’ claims under insurance contracts after the entry of NOVIS into liquidation do not equal premiums paid (except for the case in the last bullet point below). In accordance with Act No 39/2015 on insurance (Section 161(2)(c)), the following apply:
- Where the policyholder has only a risk insurance policy, i.e. with no investment component:
- and the claim event occurs before the entry into liquidation – the insurance claim must be made according to the insurance policy;
- and the claim event does not occur before the entry into liquidation – a claim for the so-called unutilised premium (a proportional part of the premium paid for the period when coverage is no longer provided) must be made.
- Where the policyholder has an insurance policy with an investment component:
- and the insurance event occurs before the entry into liquidation – the insurance claim must be made according to the insurance policy;
- and the claim event does not occur before the entry into liquidation – the policyholder is entitled to the corresponding technical provisions. NBS cannot assess individual claim amounts, but unless policyholders have different information from the liquidator or legal representative, NBS recommends that they register the amount specified in their most recent statement from NOVIS (the value of the insurance account).
- Where the policyholder did not conclude the insurance contract before the entry into liquidation and has already paid the premium – a claim for the paid premium must be made.
- If policyholders do not register their claims, these claims will not be extinguished. The liquidator must have regard to all liabilities in NOVIS’s accounts, and any that are not registered will be placed in escrow. However, it is advisable to register the claims in any case.
Further information will be provided to policyholders by the court-appoint liquidator.
NBS is not authorised to assess the progress of the liquidation, or the validity or duration of individual insurance contracts, or policyholders’ claims arising from insurance contracts. Any dispute between the liquidator and a policyholder on the duration or validity of the insurance contract or on the amount of the policyholder’s claim may only be adjudicated by a competent court.
National Bank of Slovakia
Imricha Karvaša 1, 813 25 Bratislava
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