Annex 22. Fact Sheet Slovakia 1. History of Insurance in Slovak Republic

Transcription

1 Annex 22. Fact Sheet Slovakia 1. History of Insurance in Slovak Republic On the territory of present Slovakia insurance starts in a form of benefit societies called guilds (in Slovak languge gildy, cechy a spolky). Their members had different advantages and services, as well as support in case of accidents that constitutes some form of insurance coverage. Slovakia was not too developed country with a lack of financial resources, there do not were established new insurance companies with Slovak capital, but insurance companies with foreign capital start their business here. In 1914 total number of insurance companies in Slovakia was 70. From this number 25 insurance companies provided property insurance and 45 insurance companies providing life insurance. None from them was Slovak, because all had the headquarter abroad. Except foreign insurance companies provided the insurance services local selfsupporting societies which provided insurance of farm animals (livestock insurance), fire insurance, funeral insurance, charitable activities and supporting activities. They were only small local societies and they were not able to cover all insurance accidents in case of multiple fires. In the 80-ties years of 19 th century the Hornouhorská banka Tatra in Turčiansky Sv. Martin established the first Slovak insurance company, which provided bank services, fire insurance and hail insurance. According to law in 1919, the management of banks, business, insurance, transport and industrial companies had to move on the territory of Czechoslovak Republic. In this year 3 Slovak insurance companies were established. Prvá slovenská poisťovňa, účastinný spolok v Žiline (First Slovak Insurance Company, joint-stock company in Žilina) was moved to Bratislava and changed its name to Slovákia, účastinná spoločnosť (Slovakia, joint-stock company). In 1929 it merge with Domov (Home) insurance company and renamed to Slovákia a Domov, účastinná spoločnosť (Slovakia and Home, joint-stock company). Slovenské roľnícke poisťovacie družstvo v Bratislave (Slovak Agricultural Insurance Cooperative in Bratislava) was renamed to Karpatia, roľnícka a družstevná poisťovňa (Karpatia, Farm and Agricultural Insurance Company). Prvá slovenská poisťovňa, účastinný spolok v Bratislave (First Slovak Insurance Company, joint-stock company in Bratislava) was renamed to Slovenská poisťovňa, účastinná spoločnosť (Slovak Insurance Company, joint-stock company). At the end of 1938 there were 25 Czech, 9 German, 3 Italian, 2 Swiss and 2 French insurance companies. After the disintegration of Czechoslovakia it was too high number of insurance companies, therefore some insurance companies merged and in Slovakia stayed 4 Slovak, 6 German, 3 Czech and 3 Italian insurance companies in The 567

2 insurance system was supplemented by Zaisťovací zväz (Reinsurance Union) in Bratislava, which provided only insurance of farm animals (livestock insurance) After the end of World War II became nationalization of private insurance and 5 insurance companies were established. Later these insurance companies merge to one statewide Czechoslovak Insurance Company. In the insurance was strictly centralized. Later the Slovenská štátna poisťovňa (Slovak State Insurance Company) was established. In Czechoslovakia 2 self-existent insurance companies on independent territories were the world rarity. In 1990 this condition was cancelled and enter of other insurance subjects was allowed. In the system of complex insurance was applied. The aim of this insurance was to provide insurance coverage in case of crops harvest decrease caused by destruction of plants or decline of quality. This system of complex insurance was very popular among farmers, because it provided an insurance coverage in case of damages caused by whatever risks. This was unprofitable for insurance companies because they had high cost for insurance benefits. On the was established Slovak Republic and Slovenská poisťovňa (Slovak Insurance Company) was transformed from state company to incorporated company (jointstock company). The realized changes, especially in law, enabled to start a business for new foreign insurance companies and companies in other spheres of business. At the beginning of the 90-ties years of the 20 th century cataclysmal political and economic changes began to realise. They influenced all spheres of the social life. These changes influenced the sphere of the insurance in Slovak Republic too. The globalization and the liberalization of the market became motive powers of the whole development. On the Slovak insurance market, there was till 37 insurance companies during this period. Some from them finished their activity from different reasons, other merge by fusions and acquisitions. At present 25 insurance companies operate in Slovakia, from which there are 13 universal insurance companies, 9 are specialised on life insurance and 4 provides only non-life insurance. Concerning the size of Slovak insurance market in last years there became a stabilisation of the number of insurance companies through fusions of individual subjects. Except the insurance companies with the place of seat in the Slovak Republic, insurance services can be provided by foreign insurance companies according to unified licence system single passport. Some Slovak insurance companies took this advantage and expand the territory of their activities in other countries of EU. From the total number of all companies providing insurance activities in the Slovak Republic, there are only 3 insurance subjects, which provide the insurance of risks in agriculture: Allianz Slovenská poisťovňa, a.s. (Allianz Slovak Insurance Company, Inc.), Uniqa poisťovňa, a.s. (Uniqa Insurance Company, Inc.) a Generali Poisťovňa, a.s. (Generali Insurance Company, Inc.). 568

3 2. Insurance of Agriculture in Slovak Republic Agricultural companies, like other economical subjects, use insurance services of commercial insurance companies where they insure their property, crop and livestock. Concerning the high risk in agricultural production the insurance companies are not interested in agricultural insurance, therefore only 3 insurance companies provide the insurance of agriculture. Availability of insurance for agricultural companies is realized by reimbursement of a part of paid insurance for coverage of plants and animals. In the year 2004 the Ministry of Agriculture issued the regulation 806 / about providing of subvention in the agriculture, food industry and forestry. According to this regulation the farmers can obtain the subvention 50 % from insurance paid for crop insurance of a damage caused by hail, storm or natural disasters, eventually in the case of damages caused by dangerous infections. Also the compensation in the high of 50 % from costs of animal waste, to the limit 1,65 SKK per kilogram of the waste from cadavers into transship center and consequently to a sanitation station. This subvention presents indemnity of farmers, that suffered a damage caused by dangerous infections and multiple diseases of animals. 3. Insurance Companies Only 3 insurance companies provide insurance of agricultural in Slovak Republic. Allianz Slovenská poisťovňa, a.s. (Allianz Slovak Insurance Company, Inc.) is a former Slovenská poisťovňa, a.s. (Slovak Insurance Company, Inc.), which was before the year 1989 the Slovak State Insurance Company, state enterprise. At present it has still the biggest insurance basis. The main stock-holder is Allianz AG München with the share 84,5 % of basic stocks. The next share-holder is European Bank for European Bank for Reconstruction and Development with the 15 % of equity share. After demopolisation of the Slovak insurance market Poisťovňa Otčina, a.s. (Otčina Insurance Company, Inc.) was established by Ministry of Agriculture of Slovak Republic and by Agrobanka, a.s. (Agrobank, Inc.). The primary aim of this new insurance company was providing of insurance covering of risks in agriculture. In the first years it began to diversify the portfolio of insurance products and became the universal insurance company. In the year 1994 the Austrian insurance company Bundesländer Versicherung AG bought the share of Agrobanka, a.s. and in the 1998 became the only owner of Poisťovňa Otčina, a.s. In 1999 the Bundesländer Versicherung AG merged with insurance companies Austria Collegialität and Raiffeisen Versicherung. They built up the biggest Austrian insurance concern Uniqa Group Austria, which specialise in the insurance of risks in agriculture. Consequently Poisťovňa Otčina, a.s. change the name to Uniqa poisťovňa, a.s. (Uniqa Insurance Company, Inc.). Uniqa poisťovňa, a.s. undertook the insurance basis of R+V Poisťovňa, a.s. (R+V Insurance Company, Inc.), which left Slovak insurance market. 569

4 Generali Poisťovňa, a.s. (Generali Insurance Company, Inc.) was established by Generali Holding Vienna AG in the year 1996, which is its 100% share-holder. For further information about the written insurance premium, costs on insurance benefits and index of damages, ask the authors for the Excel file Statistics of Agricultural Insurance in Slovakia.xls. 4. Conditions of Insurance Agricultural insurance include insurance of crop (agricultural plants) and livestock (agricultural animals) and provides insurance coverage of risks and damages caused by an influence of climatic factors and various unexpected events. Conditions of insurance in all 3 insurance companies are almost identical. In spite of this there are some differences between the insurance conditions in individual insurance companies. Allianz Slovenská poisťovňa, a.s. provides special insurance of damages of livestock during a transport. Uniqa poisťovňa, a.s. provides wide scale of insurance of agricultural plants. Generali Poisťovňa, a.s. provides insurance of adjacent products and advantage based on a principle of Bonus / Malus. All 3 insurance companies approach to risk evaluation individually and in specific cases it is possible to negotiate insurance of next risks by bilateral agreement of both contracting parties. Any of insurance companies do not provide insurance coverage of damages caused by drought. 5. Formation of insurance contract A submission of proposal for agricultural insurance is necessary before making of a insurance contract. The proposal is submitted by a farmer, who would like to insure his crop or livestock. The proposal has to be accepted by insurance company in the defined term, maximum till one month from the delivery date of the proposal to insurance company. The insurance contact is valid by the time, when the farmer receives the announcement about acceptance of his proposal. The contract is valid for a period of one year, if it is not written other term in the contract. The insurance contract is finished by: 1. the expiration of the time for which the contract was signed 2. the change of the owner of the insured subject 3. cancellation of the contract by some party 570

5 Making of a insurance contract for insurance of risks in agriculture Non-acceptance of proposal Insurance contract is not signed Suggester Insuree Proposal for Insurance Acceptance of proposal Insurance contract is signed Insurance Company Limits of insurance The insurance benefits from farmers in the case of damage are not paid if: 1. causes of damages happened before the signing of the insurance contract 2. damages or steal were caused by wittingly 3. damages were caused by a nuclear reaction, nuclear radiation or radioactive contamination 4. alike it is in the case of war, terrorist activities, civil rebellion, strikes, etc. 5. insuree does not keep the insurance conditions and insurer can not exactly define the conditions of the damages or the size of the claim Insurance is not relative to a lost profit, penalty, shortage or increased production costs, which arise like consecutive damages in the case of insurance event 6. Crop Insurance Necessary documentation to stipulate the contract: 1. request for a crop insurance (insurance of agricultural plants) 2. insurance contract 3. a list of plots of ground 4. statement from business register, trade register or other permission for business enterprise 571

6 5. report about plots seeded by agricultural plants to May 20, confirmed by the Statistical Office, which have to be delivered and enclosed to insurance contract till May 31 of the relevant year The place of insurance is an agricultural plough land divided to identifiable plots seeded or planted by agricultural plants and integrated to cadastre listed in insurance contract. The insurance can be negotiated for these groups of agricultural plants: Cereals Maize Oily plants Leguminous plants Hoed plants Feeds at plough land Fruits Vegetable Special plants wheat, barley, rye, oat, triticale, seeds of cereals, other cereals maize for grain, maize for seeds oily colza, sunflower, soya, poppy seed, other oily plants peas, beans, lens, other leguminous plants potatoes, sugar beat, mangel, beat for seeds, other hoed plants, seeds of other hoed plants Feeds mixed form leguminous plants and cereals, seeds of grass, shamrock, lucerne, seeds of feeds almonds, walnuts, chestnuts, other fruits vegetables, seeds of vegetable vine, stem of spin plants, spices plants (pepper), hops, tobacco, spiced and medicinal herbs Generali Poisťovňa, Inc. provides an insurance of forests for a risk of fire, bolt (lightning), explosion and aircraft accident. Insurable risks: 1. natural disasters that cause quantitative reduction of insured harvest 2. damages caused by hail 3. fire 4. storm 5. cloud-burst 6. flood The natural disasters have to be officially confirmed by the Slovak Hydrometeorological Institute. It is necessary to insured all plots of appropriate plants. 572

7 A backward, incomplete plants or plants with bad health status are out of insurance, what is remarked in the list of plots with a notice about non-acceptance to insurance. Generali Poisťovňa, a.s. and Uniqa poisťovňa, a.s. provides insurance for damages caused by hail like main insurance and other risks ca be insured like additional insurances. Generali Poisťovňa, a.s. provides additional insurance of damages caused by a spring frost for selected crops. Allianz Slovenská poisťovňa, a.s. provides insurance for hail, storm, fire and flood individually for all crops, except special plants. An exception in the group of special plants is tobacco and hops that can be insured for these risks. In this insurance company can not be negotiated an insurance coverage for a cloud-burst. Also maize can not be insured for a fire. The insurance contract can be negotiated only for a short term with a start at the furthest term in May 15 in relevant year. Vegetables can be insured at furthest term in May 31. An insurance coverage is finished at the furthest term November 15 at midnight. In spite of the validity of this insurance contract the insurance coverage is finished by a harvest in an agrotechnical term or by plough-in of the plants. In the case of fire the deadline of insurance is in September 15 and for a cloud-burst in may 31. The insurance do not cover the damages that do not originate in a connection with: 1. general exclusions 2. earthquake 3. soil erosion and landslip 4. drought 5. distemper of wild beast of forest 6. animal pests 7. insects 8. vandalism 9. damages caused by agriculturalist interventions, decreasing of products quality Insurance coverage does not include payments associated with next processing of products like drying, sorting, storage etc. 573

8 The crop insurance in Uniqa poisťovňa, a.s. does not cover a straw of cereals, leguminous plants, oily plants and not for precultivated plants before repot on the specific place. Generali Poisťovňa, a.s. provides insurance coverage for some additional products of agricultural production. 7. Livestock Insurance Necessary documentation to stipulate the contract: 1. request for an livestock insurance (insurance of farm animals) 2. insurance contract 3. amendment of negotiated insurance for a particular type of animals 4. list of stud animals (sires) 5. statement from business register, trade register or other permission for business enterprise 6. State Veterinary Administration Certificate about an infection situation in a rearing or actual monthly report of infections 7. complete animal turnover dissection or equivalent evidence of insured animals from month before the month when is signed insurance The place of insurance is an area dedicated for a rearing of farm animals and animals bred for special purpose that are written in insurance contract. The insurance can be negotiated for these groups of animals: Cattle from 4 weeks to the 8 th year of life Pigs (swine) from 4 weeks to the 4 th year of life Sheep from 4 weeks to the 6 th year of life Goat from 4 weeks to the 6 th year of life Race horse from 2 weeks to the 5 th year of life the highest age for insurance is 3 years of life Other horses from 6 months to 14 th year of life the highest age for insurance is 8 years of life Based on the special terms (conditions) the insurance can be negotiate for poultry, bees, fishes, fur animals, game, shellfish (mollusc) from farm rearing. 574

9 Insurable risks: 1. decrease on animals following death, killing or slaughter that was necessary in consequence of infective diseases in seat of infection declared by Štátna veterinárna správa (State Veterinary Administration) 2. natural disasters 3. fire 4. explosion 5. bolt (lightning) 6. storm 7. flood 8. loss of animals in consequence of these events 9. costs for a medication following surgery and it was recommended by veterinary for a diversion of an insurance incident 10. insurance coverage can be negotiated for damages caused by consequence of disease, accident, birth at some types and categories of animals Generali Poisťovňa, a.s. provides an insurance coverage of damages caused by flood, costs for a medication, which occurs in case of disease, accident and birth Uniqa poisťovňa, a.s. provides an insurance coverage in case of accident only for stud animals (sire) and horses. Allianz Slovenská poisťovňa, a.s. provides an insurance coverage of infection, natural disasters, damages caused by hail, landslide, avalanche, earthquake, downfall of trees and others. The animals can be insured in case damages that can come into being in time of transport, including a theft. The insurance coverage does not refer to: 1. general exclusions 2. the infections that exists in breeding in the time of negotiating and signing of an insurance contract 3. perish, killing or slaughter of farm animals without infections ordered by state as necessary prevention for diversion of infection s extension 4. costs relative to killing, slaughter and safe removal of dead animals 5. costs for medication necessary for repression of disease by disinfection services 6. perish, killing or slaughter of insured animals caused by a harmful substance, intoxication, metabolic diseases, perish following dropout of electric current or caused by reasons that originate outside from place of insurance 7. hereditary diseases, miscarriage, loss of utility, selection of animals 575

10 8. common operating loss cased by death 9. insurance incidents caused by stress situation 10. impotence and sterility of horses and stud animals (sire) 11. theft or killing with criminal intention 576