New consumer protections to stop hidden insurance charges on way – Lithuanian Central Bank

Bank of Lithuania
Bank of Lithuania, DELFI / Šarūnas Mažeika

The central bank said that an investigation had revealed that insurers included hidden charges into insurance policies, which shave off a considerable amount of investment earnings.

Bank of Lithuania wants that all charges be explicitly stated in insurance investment contracts. Moreover, insurers that do not manage assets would not be allowed to charge for the service.

Insurers would only be allowed to charge a contract discontinuation fee of no more than €50.

Insurers insist that European Union countries do not regulate prices in the insurance market, while the Bank of Lithuania says the rules are meant to level the field for insurers and clients.

Consumer protection groups have also said that the market lacked transparency and regulation, allowing service providers to exploit clients.

The Bank of Lithuania has presented the bill to the Ministry of Finance.

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