The Central Bank proposes to oblige banks and insurance companies to inform customers about the redemption sum that the insurer will be willing to pay if the client early terminates the investment life insurance agreement; the regulator has already prepared such amendments to the legislation, his representative said to “Vedomosti”. He did not specify when the bill would be submitted to the State Duma, as according to the representative of Ministry of Finance they had not yet received the document in the Ministry.
Now the insurers pay about 30% of the client's investment in case of early termination of the investment life insurance contract, says Eugeny Sharapov, deputy director of the ACRA rating group. Some insurers inform customers about this in advance, but such obligation is not legally defined. If the Central Bank's amendments are accepted, insurers will have to notify clients in a hard copy, the regulator representative points out. According to him, the calculation of redemption sum should also be posted on the company's website.