Ministry of Finance terminates licences of two insurance companies

Licences of Bagach and Zepter Insurance companies were terminated on May 1, 2015.

Charter97.org learnt it from the press service of the Ministry of Finance.

“The Ministry of Finance revealed violations of legislation on insurance, in particular failure to have the full amount of funds equal to the minimum amount of the authorised capital on accounts in Belarusian banks, during audits at Bagach open joint stock company and Zepter Insurance foreign unitary insurance company,” a press release reads.

Licences of the companies had been suspended, but they failed to correct the revealed violations of legislation on insurance, the Ministry of Finance says.

The authorised capital of the companies had not been formed (increased) in the proper amount and funds equal to the minimum amount of the authorised capital had not been put on bank accounts in the Republic of Belarus by May 1, 2015.

Under law, the companies were to delegate obligations under earlier signed voluntary insurance agreements to another insurance company, or terminate such agreements (except for the cases of the incurrence of obligations for paying benefits) and return the policy holder a part of the premium in accordance with the voluntary insurance agreement. The insurance company must fulfil its obligations for paying benefits incurred before the termination of voluntary insurance agreements.

“The Ministry of Finance will choose the companies that will receive the right to assume obligations of Bagach open joint stock company and Zepter Insurance foreign unitary insurance company in the period established by law,” the press release reads.