NOVIS case: liquidator still not appointed

More than nine months since Národná banka Slovenska (NBS) decided to withdraw the authorisation of the insurer NOVIS and petitioned the court to appoint a liquidator for the company, the court has to date not appointed a liquidator. This situation raises legitimate concerns for NBS and the supervisory authorities of EU Member States and Iceland, as well as for the European Commission, as regards the safeguarding of rights of NOVIS's customers. In view of the current situation, we consider it important to stress that the appointment of a liquidator for NOVIS as soon as possible is a necessary step in the protection of the company's customers.

On 7 June 2023, NBS petitioned the court to dissolve NOVIS and at the same time petitioned it to appoint a liquidator for NOVIS and to commence liquidation proceedings against the company. The purpose of the liquidation is to determine NOVIS's assets and liabilities, monetise its assets, and satisfy the claims of its customers and other creditors. The court with sole jurisdiction to appoint a liquidator for NOVIS and to place the company into liquidation is Bratislava III City Court. As more than nine months have passed since the aforementioned petition was made, no estimate can be given as to when NOVIS can be expected to enter into liquidation. Given that a significant period of time has elapsed since the NOVIS's authorisation was withdrawn and that the court has yet to appoint a liquidator to conduct the liquidation and satisfy customers' claims, NBS, under its mandate to protect financial consumers, brings the following information to the attention of NOVIS's customers:

• For the latest information about their insurance contracts, customers of NOVIS should contact the company itself. Customers contemplating taking any action in respect of their insurance contracts are advised to first contact and consult their financial intermediary, lawyer or a consumer association.
• Since the authorisation withdrawal does not affect the duration of existing insurance contracts, any claims of NOVIS's customers arising from their insurance contract (e.g. benefit payments or early or partial surrenders) remain valid. In this respect, customers can pursue their claims directly with NOVIS.

The fact that a liquidator for NOVIS has not yet been appointed does not affect the Decision by which NBS withdrew NOVIS's authorisation - Decision of Národná banka Slovenska of 1 June 2023 (document number 100-000-524-310) to withdraw the authorisation to conduct insurance business granted to the insurance undertaking NOVIS Insurance Company, NOVIS Versicherungsgesellschaft, NOVIS Compagnia di Assicurazioni, NOVIS Poisťovňa, a.s., whose company registration number (IČO) is 47 251 301 and which has its registered office at Námestie Ľudovíta Štúra 2, 811 02 Bratislava and is registered in the Commercial Register maintained by Bratislava III City Court (Section: Sa; File number: 5851/B). We further note that neither ongoing court proceedings, nor the procedural decisions of the relevant courts, have any affect on that Decision, nor can they be interpreted in a way that would prejudge future decisions of the relevant courts.

It remains the case that as of when the Decision became final. i.e. since 5 June 2023, NOVIS has been prohibited from conducting insurance business with the exception of activities necessary to enforce its claims and settle its liabilities. NOVIS may not conclude new insurance contracts. The authorisation withdrawal does not, however, affect the duration of insurance contracts already concluded.

Useful links:

National Bank of Slovakia
Communications Section
Imricha Karvaša 1, 813 25 Bratislava
Contact: [email protected]

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