Cancellation of insurance policy on the grounds of unfair business-to-consumer commercial practice (Directive 05/29) by Xenia Kretsovali
The CJEU in case number C-208/21 (preliminary ruling of 02.02.2023), ruled that the consumer is entitled to request the cancellation of insurance policy in accordance with the
provision of Directive 05/29 on unfair business-to-consumer commercial practices. In the abovementioned case, a bank concluded a group life insurance policy linked to
investment variable capital (unit-linked insurance) with an insurer, in which the bank had the capacity of the policyholder, and its borrowers that of insured persons. The bank
simultaneously acted as an insurance intermediary, for commission, on behalf of the insurer, providing, among others, information to its borrowers on the terms of the
insurance policy. A borrower – insured brought an action before the Polish courts requesting the annulment of her accession to the above group insurance policy, as well
as the refund of the premiums paid up to that time, arguing that the terms of the policy were neither made clear by the bank prior to her accession, nor were they formulated in
such a way as to be understood by an average consumer; thus, the borrower invoked that the above constitute an unfair business-to-consumer commercial practice under Directive
05/29.
The competent Polish court requested a preliminary ruling as to whether, based on article 3(2) of the said Directive, the consumer contract in question, which was concluded by
means of unfair commercial practices, could be cancelled.
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