General notice to insurance clients about the introduction of the euro
Starting from 1.1.2023, the euro will become the official currency and the legal tender in the Republic of Croatia. To make this transition as easy as possible, we have enclosed some additional information about the pending changes in relation to the insurance contracts.
What is dual expression of prices?
To make it easier for you to compare the amounts for the insurance contracts contracted in kunas, before and after the introduction of the euro such amounts will be expressed in both currencies. Dual expressed amounts, which are not in the official currency, are for information purposes only.
From 5/9/2022 until 31/12/2023, you will be seeing two amounts (dual expression) – one in kunas and the other in euros.
Pursuant to Article 47(2) of the Act on the introduction of the euro as the official currency in the Republic of Croatia important information will be expressed in dual form. The following prices and other monetary expressions of value in the insurance contract concluded or offered in kunas shall be considered essential information for insurance:
1. in pre-contractual information about insurance products:
a) the amount of the total insurance premium in the insurance offer, insurance terms and conditions, information provided to the policyholder before the conclusion of the insurance contract and the information calculation if it is a pre-contractual document in terms of the regulations governing insurance
b) the amount of the insured sum, i.e. the insured amount and the insured’s participation in the damage (deductible), in the insurance conditions and information provided to the insured before the conclusion of the insurance contract, if it is expressed in monetary amounts
c) the amount of the commission, fee, collection or other costs associated with the distribution of the insurance product
2. in the insurance contract and the information provided during the term of the insurance contract:
a) the amount of the total insurance premium on the insurance policy, the account for payment of the insurance premium and the information to be provided according to special regulations for the term of the insurance contract
b) the amount of the insurance premium instalment on the insurance premium payment account
3. in the information provided when paying the compensation or damage in kunas:
a) the total amount of damages per claim in the reasoned offer
b) the total uncontested amount of damages per claim in the substantiated response
c) the total amount of the compensation in the decision or notice on the payment of compensation.
Conversion of the kuna to the euro
The conversion will be done at a fixed conversion rate in accordance with the Law on the Introduction of the Euro as the Official Currency in Croatia. The fixed conversion rate is publicly available at the official website dedicated to the introduction of the euro www.euro.hr.
The fixed rate has five decimal places and amounts to 7.53450. All five decimal places with be used for the conversion, and the converted amount will then be rounded to two decimal places by applying a standard mathematical rule:
• if the third decimal place is lower than five, the second decimal place will remain unchanged
• if the third decimal place is equal or higher than five, the second decimal place will be increased by one.
You can see some conversion examples below:
The amount of premium in kuna: HRK 1000
The amount of premium in kuna: HRK 3000
No other conversion rate is permitted other than the official fixed conversion rate.
Insurance contracts will remain the same.
The introduction of the euro will not influence the contractual provisions and insurance conditions, so no amendments or new contracts would be necessary. Furthermore, the introduction of the euro will not entitle either party to the right to terminate or cancel the insurance contract, unless otherwise stipulated by the contract or legal regulations.
After 1/1/2023, all amounts contracted in kunas will be converted in euros using a fixed conversion rate. During the period of dual circulation (14 days after the introduction of the euro), when paying in cash, it will be possible to simultaneously use the kuna and the euro as legal tender.
Exceptionally, for insurance contracts expressed in euros that have been converted to kuna counter value until the introduction of the euro, the amounts expressed in contracts will remain in euros even after the introduction of the euro.
The conversion shall not affect the contracts expressed in euros and other currencies – the amounts shall remain as agreed.
Individual notices about the insurance contracts will be sent to the relevant clients, in accordance with the laws and by-laws, no later than within 30 days from the introduction of the euro.
Allianz Hrvatska d.d., as the provider of financial services, will also publish a general notice about the introduction of the euro on its websites in accordance with the laws and by-laws.
Allianz Hrvatska d.d. is a signatory of the Code of Ethics which confirms the accurate recalculation of prices and other values from insurance contracts in accordance with the Law on the Introduction of the Euro as the Official Currency in the Republic of Croatia.