CENTRAL BANK OF RUSSIA CALLS FOR PROTECTION OF ORDINARY CITIZENS FROM LIFE INSURANCE POLICIES

The head of the Central Bank of Russia signed a letter containing an appeal to insurance companiesthat offer to purchase investment and cash-value life insurance policies (IIP and CVIP). In particular, the question was related to products that provide for a lump sum payment of a premium or a payment that depends on assets intended for qualified investors.

Most often, such products are sold by banks. However, credit institutions do not always inform citizens about their features and risks.

According to the Bank of Russia, it is not easy for ordinary people to objectively evaluate such products, and for those who continue to mistakenly consider them to be deposits, this is fraught with both partial and complete loss of money.

According to the regulator, the measure to restrict the sale of these policies will provide an opportunity to protect unprepared consumers from this type of goods.

Vice-President of the All-Russian Union of Insurers Viktor Dubrovin, in turn, expressed his agreement with the position of the Central Bank of the Russian Federation, indicating that not all IIP and CVIP products fall under the restrictions of the Central Bank of the Russian Federation. However, many buyers may indeed feel the need for additional protection of their interests.