Commercial Insurance as a Tool of Consumer Protection in the Czech Republic

Eva Ducháčková

doi:10.18267/j.efaj.169

Abstract

Guarantee insurance is used by the state to solve some questions of consumer protection. To be specific it is insurance of tour operators against bankruptcy and insurance of employment agencies against bankruptcy. In both cases the insurance covers business risks of businesses and legal entities and that is the reason why the use of guarantee insurance in this context brings about several problems. On the one hand there are theoretical problems which deal with interpretation and explanation of the nature and principles of insurance and their application to insurance products and also problems concerning risk assessment of these products. On the other hand there are problems which deal with practical application and which are connected with the fact that there is no big interest in this kind of guarantee insurance among insurers with regard to their nature. Issues which approach the problem of consumer protection by means of commercial insurance are also related to the perception and understanding of insurance. Consumers demand full insurance coverage, however, taking into account the regulation of insurance market and the nature of insurance it is not possible to guarantee full insurance cover of losses which are caused by bankruptcy of a tour operator or an employment agency.

Highlights

Consumer protection is an issue which is currently being addressed in different areas of economic life
Affected clients could not understand why they did not receive in case of bankruptcy of the tour operator the insurance cover equal to the amount of real financial losses caused by the failure of tour operators to meet their liabilities
The state has used guarantee insurance to solve some questions of consumer protection, In the Czech Republic this has been done by the means of two types of obligatory insurance

Summary

Introduction

Consumer protection is an issue which is currently being addressed in different areas of economic life. In some cases commercial insurance has been used by the state as an alternative tool of consumer protection. In areas where problems with financial losses of consumers are involved and where it has already happened that consumers suffered financial losses as a result of business activities. Tour operators and employment agencies belong in the Czech Republic to businesses whose activities may result in financial losses of consumers and they are affected by attempts to compensate consumers for their losses by the use of commercial insurance. There is an obligation for tour operators and employment agencies to take out commercial insurance against bankruptcy if they. Ducháčková, E.: Commercial Insurance as a Tool of Consumer Protection in the Czech Republic. The insurance, which is used, has a character of guarantee insurance

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