Bank of Russia to introduce new rules for informing insurers’ clients
From 1 April 2023 on, insurers will provide their customers with a key information document (KID) when entering into insurance contracts. The KID is a summary of contract details, namely insurance coverage and exemptions, terms and amount of a refund for insurance premiums in case of an early termination of the insurance contract, and a pre-trial dispute settlement.
The Bank of Russia Ordinance on the requirements for this document has been registered with Russia’s Ministry of Justice. The new requirements must be observed by insurers when entering into voluntary insurance contracts, other than investment life insurance (endowment) contracts, and borrowers’ life and health insurance contracts, for which communication rules will be set by individual ordinances.
The KID will allow consumers to receive necessary insurance information in an easy-to-understand form before entering into contracts and to choose suitable insurance products.