Consumer defenders in Austria are suing insurance companies en masse

Insurance companies unilaterally terminated guarantees and called on savers to accept other funds without guarantees.

The Austrian Consumer Protection Association (VSV) is launching a class action lawsuit against providers of unit-linked life insurance. Savers' insurance companies initially lured clients by promising a capital and interest guarantee, but when investment funds did not achieve the necessary results, they canceled the guarantees. VSV criticizes the fact that insurance companies unilaterally terminated guarantees and called on savers to accept other funds without guarantees. Clients who did not do so were automatically transferred to such funds. "This is a unilateral change of service and the remark, which points to this in small print in the insurance conditions, is grossly disadvantageous and invalid. The contracts are invalid," the APA quoted the association as saying. VSV, in cooperation with lawyer Robert Haupt, is launching a class action lawsuit, the aim of which is to return the premium (without the so-called risk share), including interest. "Insured persons who still have active insurance can participate," announced the head of VSV Peter Kolba.