Polish Financial Supervision Commission prohibits DallBogg from writing motor third-party liability insurance in Poland

The Polish Financial Supervision Commission (KNF) issued an immediately enforceable decision prohibiting Insurance JSC DallBogg: Life and Health, based in Sofia, from conducting Class 10 non-life insurance business in Poland to the extent it involves entering into motor third-party liability insurance contracts for vehicle holders, excluding carrier’s third-party liability. KNF based the prohibition on a finding that DallBogg’s organisational structure was not adapted to the scale of its Polish business, resulting in numerous irregularities in claims adjustment under motor third-party liability policies. Existing motor third-party liability insurance contracts remain valid and DallBogg remains obliged to handle claims and pay due compensation, but any such contract entered into after 17 April 2025 would breach the prohibition, including where a policy would otherwise be concluded via a renewal clause. Policies renewed by 17 April 2025 remain valid, while after 17 April 2025 contracts will not renew automatically, including through an agent or broker, requiring vehicle owners to immediately obtain cover from another insurer; the notice also sets out 2025 fees for failing to maintain cover, ranging up to PLN 9,330 for passenger cars, PLN 14,000 for trucks, tractors and buses, and PLN 1,560 for other vehicles depending on the uninsured period. DallBogg may request KNF to review the case or appeal to the Provincial Administrative Court in Warsaw.