Law 4583/2018: everything you need to know

Have you heard about Law 4583/2018? 🤔 If not, you are not alone. Many Greek citizens are not aware of the details of this important piece of legislation that directly affects insurance and the economy of our country.

Ignorance of Law 4583/2018 can lead to misunderstandings and missed opportunities. Imagine missing out on significant benefits or unwittingly violating the new obligations imposed by the law. The consequences could be unpleasant for both you and your business.

Law 4583/2018

But don't worry! 😌 In this article, we will examine in detail Law 4583/2018, from its overview and main provisions, to its impact on insured persons and its benefits for the Greek economy. Get ready to gain a comprehensive understanding of this crucial piece of legislation.

Overview of Law 4583/2018

Main purpose of the law

The Law 4583/2018 is an important milestone in the Greek insurance legislation. Its main objective is the harmonisation of national law with Directive 2016/97/EU of the European Parliament on the distribution of insurance products. This law aims to enhance consumer protection and improve transparency in the insurance industry.

Date of application

The law came into force on 18 December 2018, with certain provisions being implemented gradually to allow insurance companies and intermediaries to adapt to the new requirements.

Main sectors affected

The main areas affected by Law 4583/2018 include the distribution of insurance products, the training and certification of insurance intermediaries, as well as sales practices and the provision of information to customers. The law introduces stricter requirements for consumer protection and transparency in transactions, while strengthening supervision of the industry.

Main provisions of the law

Α. Changes in insurance legislation

Law 4583/2018 brings significant changes to the insurance legislation in Greece. It introduces new rules for the operation of insurance companies, with the aim of strengthening the credibility of the sector. These changes include stricter capital adequacy requirements and improved risk management procedures.

Β. New rules for insurance companies

Insurance companies are required to adapt to new regulations concerning their management and operation. These include the obligation for transparent corporate governance, regular audits and reporting to supervisory authorities. In addition, the law introduces stricter criteria for the granting of operating licences.

Γ. Consumer protection

One of the main objectives of Law 4583/2018 is to strengthen consumer protection. New provisions are introduced requiring insurance companies to provide clear and understandable information to policyholders about their products and services. In addition, mechanisms are introduced to resolve disputes faster and more efficiently.

D. Transparency in transactions

The law places particular emphasis on the transparency of transactions between insurance companies and customers. Full disclosure of the terms of contracts, charges and commissions is required. This is intended to build trust and create a healthier insurance market.

With these provisions, Law 4583/2018 aims to modernise the insurance sector in Greece. Next, we will examine the impact of these changes on the insured.

Impact on insured persons

Law 4583/2018 has significant implications for insured persons in Greece. Let's examine the main changes brought by this law.

New rights and protection

The new law significantly strengthens the rights of insured persons. Insurance companies are now obliged to provide full and clear information on insurance products. In addition, policyholders have the right to cancel their policy within 14 days without penalty.

Changes to insurance policies

The insurance policies should now be more transparent and understandable. Terms and conditions must be clearly formulated, while exceptions and limitations must be clearly indicated. This helps policyholders to better understand what their insurance covers.

Complaints procedure

Law 4583/2018 introduces a more efficient procedure for submitting complaints. Insurance companies are required to have a clear complaints management system and to respond within specific timeframes. This enhances consumer protection and improves customer service.

With these changes, Law 4583/2018 aims to enhance consumer confidence in the insurance industry. Next, we will examine the obligations that the law imposes on insurance companies.

Obligations of insurance companies

Law 4583/2018 brings significant changes to the obligations of insurance companies in Greece. These new requirements are aimed at strengthening the stability of the industry and protecting consumers.

New capital adequacy requirements

The law introduces stricter capital adequacy criteria for insurance companies. This means that companies must maintain higher levels of capital to deal with potential risks.

Transparency and information obligations

Insurance companies are now required to provide detailed and understandable information to their customers about their products and services. This includes clear information on the terms, conditions, cover and exclusions of insurance policies.

Staff training

The law requires insurance companies to invest in the training of their staff. Employees must be well trained to provide accurate information and advice to customers.

Penalties in case of non-compliance

Finally, the law provides for severe penalties for companies that do not comply with the new requirements. These may include heavy fines or even the withdrawal of the operating licence.

With these new obligations, Law 4583/2018 aims to strengthen consumer confidence in the insurance industry. In the following, we will examine how these changes can benefit the Greek economy as a whole.

Conclusion

The Law 4583/2018 is an important step towards the modernisation of the insurance sector in Greece. With its main provisions, it affects both policyholders and insurance companies, while it is expected to have a positive impact on the Greek economy.

It is important that all stakeholders are fully informed about the changes brought by the law and adapt accordingly. Insured persons should carefully consider their new rights and obligations, while insurance companies must adapt to the new requirements. With proper implementation, Law 4583/2018 can contribute significantly to the development of a more efficient and transparent insurance system in our country.