Czech insurance companies are currently facing thousands of complaints from unhappy buyers of investment life insurances policies. But the angry buyers have been hampered by the lack of Czech rules allowing them to bring so-called group or class actions. The government is now promising to act, Radio Praha wrote.
Czechs have been fighting some of the country’s biggest insurance companies for over a decade after being convinced to buy long lasting new investment life insurance policies
Whatever the interpretation, the case has highlighted one significant loophole in the current Czech legal framework: the absence of rules allowing consumers to bring so-called group or class actions. These allow individuals to group together and fight cases, often in such cases of consumer rights, mass sales, or major accidents, where they would probably be deterred from launching actions on their own.
At the beginning of April 2018, the Czech Cabinet agreed to address that problem by coming up with legislation that would pave the way for such class actions.
The Cabinet decision is in principle only with the minister saying it will likely take until the first quarter of 2019 for legislation to be prepared for parliamentary approval.
15th November 2021