General Insurance Terms and Conditions (OWU): What to Read Before Signing the Contract

There are two important documents in an insurance policy: the insurance contract itself (umowa ubezpieczenia) and General Insurance Terms and Conditions (General Insurance Terms and Conditions, GITC). The scope of a specific policy is determined by the contract and the GITC of the selected company. Read both documents before signing.

Below is what the Polish Civil Code (Kodeks cywilny) says about this: when the General Terms and Conditions (OWU) are binding on you, how a contract differs from the general terms and conditions, what circumstances the insurer asks about that you are required to disclose, and how contract cancellation and premium refunds work. We are summarizing only the content of the articles themselves; for details regarding your policy, please refer to the contract and the General Terms and Conditions (OWU).

What Is an Insurance Contract?

According to the code, insurer (the insurer) undertakes, within the scope of its business operations, to provide a specific benefit if an event specified in the contract occurs. Policyholder (the policyholder) agrees to pay insurance premium, known in Polish as “składka” (Article 805, § 1 of the Polish Civil Code).

The insurer’s obligation consists, in particular, of making a payment (Article 805, § 2 of the Polish Civil Code):

• in property insurance — specific compensation (odszkodowanie) for damages resulting from an event provided for in the contract;
• for individual insurance — a specified sum of money, an annuity, or other benefit (świadczenie) upon the occurrence of an event in the insured person’s life as provided for in the contract.

When OWU contacts you

OWU refers to standard contract terms (model contract). The Code includes, in particular, general terms and conditions, model contracts, and regulations (regulamin), if established by one of the parties.

Such terms are binding on the other party if they were provided to that party prior to the conclusion of the contract (Article 384, § 1, of the Polish Civil Code).

If one of the parties uses standard terms and conditions in electronic form, it must provide them to the other party before the contract is concluded so that the other party can store and reproduce them in the ordinary course of business (Article 384, § 4 of the Polish Civil Code). When you receive the General Terms and Conditions (OWU) electronically, be sure to save them for your records.

How does a contract differ from an OWU?

The terms of the contract and the general terms and conditions may differ. In such cases, the Code provides the following rule: The insurer is required to provide the policyholder with a written explanation of the differences between the terms of the contract and the general terms and conditions prior to the conclusion of the contract (Article 812, § 8 of the Polish Civil Code).

If the insurer has not done so, it may not rely on a difference that is disadvantageous to the policyholder. There is an important caveat: this rule does not apply to insurance contracts that are concluded through negotiation (w drodze negocjacji).

Once you receive the contract and the OWU, place them side by side and check to see if there is a written description of the differences. If anything is unclear, ask about it before signing.

Answers to the Insurer's Questions

The policyholder is required to disclose to the insurer all circumstances known to him, about which the insurer asked in the offer form (formularz oferty) or, prior to the conclusion of the contract, in other written documents (Article 815, § 1 of the Polish Civil Code). This obligation applies specifically to the circumstances referred to in the question.

If a contract is concluded through a representative (przedstawiciel), this obligation also rests with the representative; it also includes circumstances known to the representative himself (Art. 815 § 1). If the insurer has entered into a contract despite the absence of answers to certain questions, the omitted circumstances are considered immaterial (Art. 815 § 1).

The insurer is not liable for the consequences of circumstances that were not disclosed to it in violation of the preceding paragraphs of this article (Art. 815 § 3 of the Polish Civil Code). If the breach was committed with intent (z winy umyślnej), then in case of doubt, it is presumed that the event specified in the contract and its consequences were caused by such undisclosed circumstances.

Answer the questions on the form carefully and completely. If you are unsure how to answer, clarify this before signing.

Right to Withdraw from the Contract

The Code provides that cancellation of an insurance contract (withdrawal from an insurance contract) for contracts concluded for a term longer than 6 months (Article 812, § 4 of the Polish Civil Code). The time limits are as follows:

• Total duration: 30 days from the date the contract is signed.
• If the policyholder is an entrepreneur (przedsiębiorca): 7 days from the date the contract is signed.
• If the policyholder is a consumer (konsument) and the insurer has not informed the policyholder of the right to cancel the contract no later than the time the contract is concluded: The 30-day period begins on the day the consumer becomes aware of this right.

Termination of the contract does not relieve the policyholder of the obligation to pay the premium for the period during which the insurer provided insurance coverage.

Check the term of your contract: the article refers to contracts longer than 6 months, but says nothing about contracts that are 6 months or shorter. Check your policy details in the contract, in the OWU, or with an advisor.

Fees and Refunds for Unused Coverage

The Code states: The premium is calculated for the period during which the insurer is liable. If the insurance relationship (stosunek ubezpieczenia) terminates before the end of the term for which the contract was concluded, the policyholder is entitled to a refund of the premium for the period of unused insurance coverage (Art. 813 § 1 of the Polish Civil Code).

This provision differs from the rule on contract cancellation in the previous section: in the event of cancellation, the premium for the period during which coverage was in effect is still due.

What to Check Before Signing

Here's what you should look for in the documents:

• Obtaining an OWU in Advance: The terms are binding on you if they were provided to you before the contract was concluded, and standard terms in electronic form must be made available in a way that allows you to store and reproduce them.
• Written description of the differences between the contract and the OWU (this rule does not apply to contracts entered into through negotiation).
• Answers to the insurer's questions: Have you reported all the facts known to you that he asked about?.
• Contract term: The rule regarding contract termination applies to contracts with a term of more than 6 months.
• Exclusions from Liability (Exclusions): Look in the General Insurance Terms and Conditions for the section on what risks the policy does not cover, and read it carefully.

You can find examples of policies on the service's pages about apartment insurance and about Civil Liability Insurance (OC) car. Polisarium's consultants compare offers from many insurance companies (a list of the companies the service works with is available on the page insurance companies) and can help you compare the contract and the OWU of the company you've chosen.

Frequently Asked Questions

What is OWU in simple terms?

These are the general insurance terms and conditions (ogólne warunki ubezpieczenia)—a set of terms established in advance by the insurer, rather than jointly by the parties. The Civil Code refers to such documents as standard contract terms (wzorzec umowy) established by one of the parties (Art. 384 § 1).

Is it possible to cancel an insurance policy after signing it?

Yes, if the contract is for a term longer than 6 months: the Code provides 30 days for this, and the entrepreneur has 7 days from the date the contract is concluded (Art. 812, § 4). The premium remains due for the days during which the coverage was already in effect.

What happens if you don't answer the insurer's question?

If the insurer has nevertheless entered into the contract, the circumstances regarding the unanswered questions are considered immaterial (Art. 815, § 1). The policyholder must answer the remaining questions to the best of his or her knowledge: this is a general obligation under the same article.

Is a refund of the premium due if the insurance contract is terminated before its term expires?

Yes, there is such a rule in Article 813, Section 1: the premium is calculated for the duration of the insurer’s liability, and any unused portion is refunded. To see how this applies to your policy, check the contract and the OWU, or ask an advisor.

If you'd like to compare the contract and the OWU with an advisor, visit the page contacts (offices in Warsaw, service available in Russian) or call 534 666 111. For a car in cost calculation form You need to enter your registration number and PESEL, after which you can calculate your OC and AC premiums.