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Lellos P. Demetriades Law Office offers advice on insurance matters including regulatory issues, setting up requirements and relevant litigation concerning mostly accident claims.
INTRODUCTION
The first insurance companies operating in Cyprus were registered in England under the English Insurance Law as there was no specific local legislation in Cyprus on the matter. In 1969 the first Insurance Companies Law was enacted and the first insurance companies were registered in Cyprus and started carrying out operations.
The functioning of all the insurance companies was and is controlled according to Cypriot legislation by the office of the Superintendent of Insurance which forms part of the Ministry of Finance.
APPLICABLE LAW
The development of the insurance sector in Cyprus has been very rapid and the initial legislation underwent various amendments. In year 2003, Cyprus enacted Law 35(I)/2002 in order to comply fully with the European Union Directives on insurance companies. The new legislation brought about marked changes in relation to the regulatory framework of the insurance industry and introduced additional burdens for insurance companies in relation to solvency requirements.
The office of the Superintendet of Insurance still exercises the regulatory control of insurance companies that operate in the Republic.
The carrying out of insurance activities in Cyprus is allowed for Cypriot insurance companies that possess a license to carry out insurance operations, foreign insurance companies that are registered under Cyprus Company Law and possess a license to carry out insurance operations, Lloyds of London and insurance Companies of the European Union.
The law, inter alia, in its aim to protect consumers imposes various obligations on the insurance companies in relation to the information they provide prior to the conclusion of an insurance policy, on the format of advertisements and other.
The law contains provisions in relation to insurance mediation and the legal framework concerning the distribution methods of insurance products.
TYPES OF INSURANCE OPERATIONS
According to the law the insurance companies can carry out either general insurance business or life business.
The classification of risks under general business includes, inter alia, the classes of Accident, Insurance, Motor Insurance, Aircraft, Marine (hull and cargo), Fire Insurance, Liability Insurance, Loss of Profit etc and the classification of Risks under Life Insurance includes, inter alia, the classes of Life Insurance, Health Insurance and Others.
Motor Insurance and Liability Insurance are the only kinds of insurance for which cover is compulsory by law.
WORK UNDERTAKEN BY OUR OFFICE
From the setting up of Lellos P Demetriades Law Office, we have been involved in litigation defending mostly accident claims on behalf of leading insurers in Cyprus and on behalf of the Motor Insurers Fund.
We also offer advice on insurance matters including regulatory issues, setting up requirements, mergers and acquisitions in relation to insurance companies, drafting of insurance policies, advice on policy wording interpretations, claim settlements, insurance advertisements and agency agreements.
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