The Court invalidated the unit-linked insurance contract

The District Court for Warsaw-Mokotów in Warsaw in its judgement of 23 June 2016 (ref. act II C 1484/15) ruled that the unit-linked insurance group agreement “PARETO II”, concluded by and between an insurance company EUROPA S.A. and Open Finance S.A., is invalid. The judgement opened opportunity to the policyholders to claim for reimbursement of all funds paid regardless the current status of their accounts. Justifying the judgement, the Court found that the investments risk was totally passed on the insurer’s clients, and the agreement did not provide for the manner of determining the value of bonds purchase within the insurance capital fund, in which they invested their funds. The Court also stated that the clients were not able to assess the risk taken while entering into the insurance agreement.