Fogyasztóvédők Magyarországi Egyesülete

What is the definition of insurance?

By concluding insurance contracts, insurers shall be obliged to pay a certain amount of money or perform another service upon the occurrence of a specific future event (insurance event), and the insured or other contracting parties shall be obliged to pay an insurance premium therefor.
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment.

What is the basic idea of insurance?

The basic idea of legal institution of insurance is that certain society members set a commonity to bear the risk, the damage-consequences, and to provide compensation (services) at the occurrence of certain events.
Why is it worth to purchase an insurance policy?
The insurance related to private parties obviates the blast of certain unpredictable, but occuring events having an effect on the financial situation of a person. With other worlds it gives peace and security, because if the injury occurs, lost assets can be compensated in the context of insurance, the management will continue.
To a certain extent everyone has a need to different insurances, as most people possess a real estate, higher-value assets, and by a loss of these values, serious financial situation can be evolved both to private person and to economic organizations as well.
The purchase of life, health and accident insurance is also a useful help to everybody, since a financial help comes in handy by apropose of an unpredictable event.

What can be insured?

Practically all the risks accepted by the insurer. The most common risks in the field of non-life insurance: accident, health,bulglary, liability, compulsory liability, car, coverage against natural disasters and fire, property, credit insurance, surety, legal expenses insurance, funeral insurance, etc. Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary, and may specifically provide for income to an insured person's family, burial, funeral and other final expenses. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment (in case of death, or if the insured has reach a certain age) or an annuity, or varies of these solutions.

How to choose the right insurance?

The list of insurance companies operating in Hungary are available in many places, whether in printed form or via Internet. The rules of insurance products aren't always understandable to an average citizen, and therefore it's advisable to select the technical and legal aspects through insurance agents, the directory of the agents is also found in several places (or the websites of insurance, on the State Financial Institutions Commission's website).
It is very important to be thoroughly informed about the services provided by the insurer, and about the conditions. of these services before concluding the contract. We can recieve these informations on dodgers, prospectus distributed by the insurers, or via Internet,but if not every answer is clear, it’s paractical to contact personally. It’s not advisable to purchase an insurance with sales manager, who accelerate the decision, and give only a few and vague explanations.

To what shoud I pay attention by conclusion of the contract?

We should pay attention to the followings (exemplary enumeration) : the definition of the risks accepted by the insurer, that is what insurance events are ensured, the cases of exemption from insurance liability, the range of insurer's exclusions, the insured amount.

What are my rights and obligations by purchasing an insurance?

• Right to information (the insurer before the conclusion of the contract, on a proveble manner, shall give an understandable, clear and detailed information to the consumer about the main informations of the insurer. (company name, legal form and address) and about the characteristics of the insurance contract.
• Obligation to pay fees (it is the client’s contract obligation to pay the insurance premium continously and in time; in case of delinquent premium if the regulation doesn’t include it, the insurer won’t send a letter of demand)
• Reporting obligation (the customer when concluding the contract shall inform about all the relevant circumstances in connection with the acceptance of the insurance, which is known or should be known)

How can I cancel the insurance contract meantime?

The property insurance contracts can be avoided by both parties, without giving any reasons, in writing to the insurance anniversary, and this resignation should arrive at least 30 days before the anniversary. Anniversary of the insurance may be accordant to the same calendar year, or acted on the concluding time of the contract. The life insurance contracts have different rules, which limit the possibilities of resignation (mainly for insurar).
By mutual consent, it is possible to avoid the contract at any time during the year.

Where can I appeal against the insurer's decision?

First of all by the insurer. If the parties are unable to agree, the complainant may refer to the State Financial Institutions Commision or to the arbitration boards as well. There is always open the door to judicial route, which decide and close the dispute between the parties.