Thousands of Czechs are losing money from insurance for the deceased. Insurers say nothing and the state does not solve it
The man insured his life insurance policy with a charitable organization. He died. But the organisation never found out about his claim – and after ten years, the money was forfeited to the insurers. This is a fairly common practice in the Czech Republic. In the Czech Republic, there is a legal mechanism that allows insurance companies to keep life insurance claims without informing the insured – i.e. the intended beneficiary -. A group of senators now wants to remedy the problem highlighted by NGOs by proposing an amendment to the Civil Code. The amendment is intended to ensure that insurance companies have a legal obligation to contact the beneficiary.