Usury policy providers had a duty to warn about the risks of their products. This is the conclusion of the Supreme Court after questions from the Court of Appeal in The Hague. The ruling is a victory for claim clubs of holders of the usury policies, who want compensation for damage suffered.
The usury policy affair has been puzzling in the financial world for years. In 2006 it came to light that far too high costs have been charged for many unit-linked insurance policies since the 1990s. Claims organizations have been trying to mobilize victims ever since to get compensation from the insurers. Various cases are pending against insurers such as Nationale-Nederlanden and ASR, which have been brought by interest groups Woekerpolis.nl and Wakkerpolis. Billions of euros in compensation are being claimed.
One of the central questions in these procedures is whether life insurers have provided policyholders with sufficient information when taking out unit-linked insurance policies. This concerns, among other things, the costs and risks of the products. The victims believe that this is not the case, but the insurers believe that they have complied with the rules.
Woekerpolis.nl is one of the claim clubs that is trying to agree on a compensation scheme. The organization filed a claim with Nationale-Nederlanden in 2013. In that procedure, too, the central question is whether the insurer has sufficiently informed customers. In 2017, the District Court of Rotterdam rejected Woekerpolis.nl’s claims. An appeal was then lodged with the Court of Appeal in The Hague, which had put questions to the Supreme Court. That is the highest court in the Netherlands.
Supreme Court: provider of usury policy had to warn about risks
Source link Supreme Court: provider of usury policy had to warn about risks