Insurance in Poland is an issue that every resident – whether Polish or foreign – must deal with. Some types of insurance are required, while others are voluntary. However, they can often protect you from serious problems and high costs. We encounter insurance at various stages of life.
The purpose of this article is to explain which of these are mandatory in Poland and which ones you can choose and purchase on a voluntary basis. So, here you’ll find the basics and what you should know as someone who has come or is coming here from abroad. Remember, you’re not alone, and we’re here mainly to help you get the hang of this.
What are we talking about?
Insurance is a contract between you and an insurance company. You pay premiums, and the insurer promises to pay compensation if an event covered by the policy occurs. Although it sounds simple, the insurance system has many nuances. Knowing even just these basic concepts can really make your life easier.
Understand the breakdown
First and foremost, it is important to know that insurance law and practice in Poland distinguish between two main types:
- Personal Insurance – protecting you personally, that is, your health, your life, and your ability to work.
- Property insurance – covers property, its damage, and civil liability.
They are categorized later as mandatory or voluntary. Exactly…
Remember to get the required insurance
Some types of insurance are mandatory, and you need to keep them in mind. Even, or rather especially, as a foreigner here in Poland. This is very important because there are no exceptions in this regard. Failing to have a policy may result in fines or the need to cover the damages yourself.
The most important ones include:
– Motor Vehicle Liability Insurance – every registered vehicle must have liability insurance.
– Farmers’ Liability Insurance – if you operate a farm, the law may require you to have farmers’ liability insurance if the farm meets certain criteria.
– Insurance for agricultural buildings against fire and unforeseen events – for buildings that are part of farms.
– Professional Liability Insurance – there is a list of professions and activities that are required to have professional liability insurance or other mandatory civil liability insurance. So, this may apply, for example, to doctors, attorneys, accountants, etc.
Additionally: In some situations, insurance policies – which are generally voluntary – are required by the other party to a contract or transaction. This is most common with loans, specifically:
- Mortgages – banks always require insurance on the property being financed, and sometimes also on the borrower’s life.
- Business loans – similar to the above. Although, in this case it may also apply to movable property such as machinery or other business equipment, if that is what the loan is used to finance. For large loan amounts, banks often require an insurance guarantee.
- Car leasing – in addition to the mandatory liability insurance for the leased vehicle, as you already know, the lessor always requires comprehensive auto insurance (AC) and roadside assistance.
In these situations, banks or lessors usually offer their own insurance policies. Here is when it’s worth reaching out to a company like ours. Very often, we can offer more favorable insurance than a bank, which, even in this situation, is trying to make as much profit as possible. By the way! If you need a loan or a lease, we can help you with that, too! Check out our brand dedicated to financial services.
How do you decide?
The insurance system in Poland is extensive and, as if to make matters worse, unavoidable. So every resident -whether Polish or a foreigner – must keep in mind the basics, such as auto liability insurance. Failing to have it can quickly turn into a costly problem.
Voluntary insurance policies, on the other hand, are more of a personal choice. Some people choose for life insurance, others prioritize good coverage for their homes or apartments. Also, private health insurance policies are becoming increasingly popular. The most important thing is to consciously choose coverage that fits your needs. You need to know what’s in the final contract, often hidden in the fine print, because misunderstandings frequently arise here.
So, to sum up now
The right insurance policy can really take the pressure off when times are tough. We often don’t even realize it, but it’s something that’s absolutely priceless. Fortunately, you don’t have to figure all this out on your own. We’re here first and foremost to help you – all you have to do is contact us. Tell us about your situation, and we, at compacc – competent insurance, will find the right solution. To put it bluntly, this is ultimately a matter of life and death, and it’s not something worth skimping on.
