Latvian Insurance of Jewelry Basic Need

Latvian Insurance of Jewelry Basic Need.

By Aamir Mannan.

Latvian insurance company Balva operations temporarily suspended

BC, Riga, 16.04.2013.Print version

   The Financial and Capital Market Commission of Latvia today imposed several restrictions on the operations of the joint-stock insurance company Balva – the company must continue to fulfill its obligations to customers but it may not sign new insurance policies, as LETA/Nozare.lv learned from the commission.

130416_ balva.jpg

According to the Financial and Capital Market Commission's Communication Department head Laima Auza, the council of the commission took the decision in order to protect insured persons' interests.

 According to the Financial and Capital Market Commission's decision, Balva may not sign new insurance policies, increase insurance claim amounts or extend insurance agreements. The commission took the decision after establishing several
violations of legal requirements at Balva. As soon as these violations are rectified, the commission will consider lifting the restrictions. Under the law, the company has six months to rectify the violations.

 The commission explains that its decision will have no effect on the company's customers – the insurance contracts signed by Balva are still in force and the company must fulfill all its obligations to customers.

Up until now, Balva offered civil liability, vehicle, property, health and travel insurance.

A statement at the company's website says the Financial and Capital Market Commission decided to suspend Balva operatinos due to shortcomings established in Balva insurance business in Great Britain, and that the company is currently working on solving the problem so it could resume operations as soon as possible. The company also emphasizes that the commission's decision will have no effect on the company's customers, that all insurance policies are valid and that the company will continue to honor its obligations to customers.