Credit Insurance

The credit insurance is designed to protect against the property consequences which may arise to the insured persons in the case the debtor does not pay back provided finances.

From the point of view of public law, the credit insurance is an independent class of insurance  No. 14 of non-life insurance pursuant to Annex No. 1 to Act No. 277/2009 Coll., on Insurance, Part B, point 14.  In terms of private law, it is regulated in the Civil Code in Part Four, Title Two, Part 15, Section 2, as a separate subsection 11, Sections 2868 to 2870. The credit insurance itself is designed to protect against the property consequences which may arise to the insured persons in the case the debtor does not pay back provided finances. This insurance can be arranged only as the insurance against loss (it means only actually damage will be compensated). The value of the insurance interest in credit insurance is the claim of the insured creditor against the debtor based on the obligation of the debtor to pay back the funds provided by the creditor. The credit insurance must not be confused with insurance products protecting the debtor as the insured person against insurance risks such as injury, incapacity for employment, loss of employment or death of the insured, the implementation of which could reduce his/her ability or directly cause inability to pay back the credit.

In addition to this legal regulation, credit insurance with the state aid is also governed by Act No. 58/1995 Coll., which regulates insurance and financing of export with state aid. The export credit risk insurance is operated exclusively by the Exportní garanční a pojišťovací společnost, a.s. (the Export Guarantee and Insurance Company called EGAP) as an export insurance undertaking whose sole shareholder is the state which guarantees its liabilities. The public insurance regulation applies to the export insurance undertaking only to the extent specified in the  above-mentioned Act No. 58/1995 Coll.

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