Whether it is better to buy the Policy in a foreign company?

According to article 2 of the Law of Ukraine «On Insurance» the insurance activity in Ukraine is carried out only by the insurers being residents of Ukraine who obtained the license from the State commission on regulation of the markets of financial services of Ukraine. So the activities of foreign companies and intermediaries which represent interests of such companies and sell their products is illegal. Certainly, you can conclude the insurance contract with a foreign company during your stay in a country where such company has the right to run the activity. But in the future you can have certain problems in relations with such insurer. It concerns also premium payments, supply of information, and opportunities to protect your interests. To receive the insurance benefit from a foreign insurer, the Insured or Beneficiary should directly address to such insurance company and present necessary documents according to the laws of the country of registration of such insurance company, and not always the documents issued by the Ukrainian structures (like medical conclusions, etc.), will be recognized abroad. It is necessary to receive expert opinions of the foreign country, and the cost of such conclusions plus the stay in a foreign country may be more expensive for you than the insurance benefit which still requires a proof of the right thereto.

The insurance companies organized with participation of western insurance companies which obtained the licenses for the right of insurance activity in Ukraine operate lawfully. But from the legal point of view they have no difference as compared to domestic insurers. The parent company only gives its name and does not bear the direct responsibility for obligations of the Ukrainian "daughter".

In addition, often the essence of such companies consists in taking the available money of the Ukrainian population to the country of a real proprietor of such companies and, accordingly, the funds will work abroad and improve the living standards of inhabitants in other countries, while the Ukrainian economy needs them so for creation of new jobs and development of domestic businesses. However except for "patriotic" aspect of such situation there is also a clear practical side: the income under such policies will hardly exceed 3-4% annual as for the European markets even such income is considered as high.

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