Government Decree No. 53 / 1951 Coll.
Regulation issuing the status of Czechoslovak insurance company, national enterprise
Valid
Effective from 21.07.1951
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53.
Government Regulation
of 3 July 1951
issuing the status of Czechoslovak Insurance Company.
The Government of the Czechoslovak Republic orders according to § 19 of Act No. 190 / 1950 Coll., on Tasks and Organisation of Insurance:
(1) The status of the Czechoslovak insurance company, a national undertaking, is hereby declared.
(2) The Statute forms part of this Regulation and is annexed to the Collection of Laws. *)
The Ministry of Finance may issue more detailed provisions on matters governed by this Statute.
This Regulation shall enter into force on the day of its publication; they shall be carried out by the Finance Minister in agreement with the Minister of the Interior and the members of the Government involved.
Zaporocký v. r.
Cable v. r.
Annex to Government Decree No. 53 / 1951 Coll., which gives the status of Czechoslovak Insurance Company, a national enterprise.
Status
Czechoslovak insurance companies, national enterprise.
Introduction.
Production is the basis of the development of national wealth. The new social order only wins over the old one if companies can provide more better and cheaper products than the old one. Therefore, the basic task of the working people is to implement the production plan and develop harmonically the production forces.
The continuity of production and other economic activities and their planned development are distorted by natural disasters and accidents affecting production equipment and products. That is why in the socialist economy, according to Marx's idea, we are creating an insurance fund to cover the damage caused by these events. The most effective form of the insurance fund is the only insurance company providing financial compensation for the damage mentioned by the property insurance. This helps to deepen planning. At the same time, the insurance company provides documentation for the planning of material compensation for damage and for the protection of damage.
Working people are the key factor in production. The workers are rewarded according to the work done. The remuneration for this work may be used at their choice; they may also postpone part of the consumption to the future and thus ensure that the standard of living reached for themselves in the event of incapacity to work as a result of an accident, illness or advanced age, or for their family in the event of death. This also allows for life insurance.
The function of an insurance company in a socialist economy is completely different from that of a capitalist economy. Capitalist insurance companies consider insurance to be business and are a means of making profits. The task of an insurance company in a socialist economy in which there are no opposing interests is to serve the working community by providing insurance protection.
In order to enable the insurance undertaking to perform its duties properly in the socialist economy, its tasks have been set out in the Act on the Tasks and Organisation of Insurance and a basis for its organisation.
The Statute expands the tasks and organisation of the insurance undertaking and is a directive designed to lead the insurance undertaking to further development, progress, building efforts and to contribute its activities to the building of socialism.
I. Establishment of insurance.
(1) By the decree of the President of the Republic No. 103 / 1945 Coll., on the nationalisation of private insurance companies, the contractual (private) insurance industry in the territory of the Czechoslovak Republic was nationalized. By order of the Government pursuant to Paragraph 10 (1) of that Decree, five insurance companies - national undertakings - started their activities on 1 January 1947 and entered into the rights and obligations of most of the nationalised insurance institutions. The nationalisation removed private profit from the insurance industry; at the same time, competition from a large number of insurance companies for profit has disappeared.
(2) The defeat of the reaction and the victory of the working people in February 1948 allowed all five insurance companies - national enterprises - to be merged into a single insurance company and thus complete the nationalisation of insurance companies. It was thus a government resolution pursuant to § 10 (4) of Decree No. 103 / 1945 Coll., which merged the other four insurance companies in whose rights and obligations the latter entered into force with the First Czechoslovak insurance company - a national undertaking with effect from 1 January 1948; its name was changed to "Czechoslovak Insurance Company, National Company" and its registered office was transferred to Prague. It was only the insurance company that concentrated all the insurance activities that became eligible to perform the task that it felt in a new society transforming into a socialist.
(3) Act No 95 / 1950 Coll., which regulates certain conditions in the insurance sector, gave a basis for the removal of the nationalised insurance institutions until then existing alongside the Czechoslovak Insurance Company (hereinafter referred to as the "insurance company"). The insurance company is now an exclusive domestic insurance operator.
II. The name and registered office of the insurance undertaking, its legal nature and legal circumstances.
(4) The name of the insurance undertaking is as follows:
in Czech:
Czechoslovak Insurance Company, National Company,
in Slovak:
Czechoslovak Poistovňa, navný podnik.
The names of insurance undertakings in other languages shall, if the insurance undertaking needs them, be determined by the Ministry of Finance.
(5) The seat of the insurance company is in Prague.
(6) The insurance undertaking is a separate legal entity.
(7) The insurance company shall be entered in the company register.
(8) The assets of the insurance undertaking are owned by the State and are used to cover insurance premiums and other liabilities of the insurance undertaking and to cover its reserve fund. In respect of such assets, the insurance undertaking shall act in its own name.
(9) The insurance undertaking shall not dispose of or burden the immovable property entrusted to it for administration. Negotiations that oppose this ban have no legal consequences. Exemptions from the prohibition on disposal and loading are permitted by the Ministry of Finance.
(10) Only the assets entrusted to the undertaking by the undertaking may be satisfied for its liabilities.
(11) The assets held by the undertaking in its management cannot be claimed to satisfy the claims of the State.
III. The tasks of the insurance company.
Insurance operations
(12) In socialist society, insurance is a service and support for economic life and workers. It is the task of the insurance undertaking to serve the working community in the planned, socialist economy by raising funds in property insurance to cover accidental damage affecting the means of production and the personal property of workers; in personal insurance, the insurance company helps maintain the standard of living achieved by the workers. The insurance undertaking must endeavour to provide the fullest possible insurance protection and to do so as economically as possible.
(13) Insurance is either voluntary if it is a voluntary contract or compulsory if it is an insurance contract that is made out of an obligation imposed by law.
(14) The operation of voluntary and compulsory insurance of assets and persons in the territory of the Czechoslovak Republic is an exclusive right of insurance. However, the right of an insurance undertaking to carry out insurance of persons does not affect the jurisdiction of the Central National Insurance Corporation or an insurance undertaking whose own purpose is to insure benefits similar to those of national insurance.
(15) Outside the territory of the Czechoslovak Republic, the insurance company may not operate insurance unless approved by the Ministry of Finance.
Insurance of property
(16) In the case of insurance of property (property insurance), the insurance undertaking shall, within the limits of its obligation, provide insurance compensation for damage caused by natural disasters or accidents or other incidents involving property insured against those risks. He shall obtain insurance premiums from policy holders for these allowances and his expenses.
Insurance of property which is a socialist property
(17) Property, which is a socialist property, enjoys the widest insurance protection in property insurance.
(18) National assets which are in the administration of state bodies are covered by a comprehensive insurance policy to the extent and under the conditions laid down by the Ministry of Finance in the agreement with the Ministry of Interior and the construction industry and the participating Ministry.
(19) National and municipal undertakings shall be insured with insurance undertakings against the consequences of statutory liability and shall insure the assets entrusted to them for administration against the damage caused by natural disasters; they insure this property against other damages only if their economic needs require it.
(20) Other socialist legal persons to whom national assets have been entrusted to the administration and designated by the Ministry of Finance in agreement with the participating ministries shall be insured to the same extent as national and municipal enterprises.
(21) The contracts whereby national and municipal undertakings and other socialist legal entities entrusted with national assets to the administration are insured against the consequences of statutory liability and insure the national assets entrusted to them to the administration against damage are subject to the provisions of Part One of Act No. 99 / 1950 Coll., on Economic Contracts and State Arbitration, mutatis mutandis.
(22) United agricultural cooperatives are the way of our village to socialism. Therefore, the insurance company provides them with the widest possible insurance protection against the risks to their production. The largest insurance policy is provided by the insurance company and other folk cooperatives.
Insurance of workers' personal property
(23) The insurance company provides the workers with a wide insurance policy to protect their personal property against damage caused by natural disasters or accidents or other accidental events and thus allows workers to ensure the standard of living achieved.
Private property insurance services
(24) The insurance company also covers private property if it contributes to the construction and development of a socialist economy.
Insurance of persons
(25) In the case of insurance of persons (personal insurance), the insurance undertaking shall pay the contractual amounts if there is a contractual event affecting the life or health of the insured. It shall obtain insurance premiums from policyholders for these amounts and its costs.
(26) Of the types of personal insurance, the life insurance company operates one-off payments and life-dependent pensions insurance, insurance exemption insurance, if the insured person becomes an invalid, accident insurance, as well as insurance linked to those types.
(27) The tasks of an insurance undertaking under personal insurance shall not conflict with the objectives pursued by national insurance.
Auxiliary activities
(28) The insurance company participates in the care to prevent and protect against the consequences of insurance events, according to directives issued by the Ministry of the Interior in agreement with the Ministry of Finance, other participating ministries and the central body of the Single Trade Union Organisation. Within the framework of those Directives, the insurance undertaking shall participate in the implementation of the measures taken and in the monitoring of their implementation. The insurance undertaking shall contribute funds to the implementation of the measures taken.
(29) The insurance undertaking shall identify the causes of the occurrence of the claims and the extent of their consequences; it shall process these findings statistically; it shall obtain evidence of the measures to protect against the occurrence of the claims and the reduction of the consequences of the claims already incurred; it shall communicate the findings to the competent national authorities and, under the directives referred to in the previous paragraph, to policy holders with proposals for withdrawal measures.
Research activities
(30) The insurance undertaking is entitled to establish, conserving the rules of the Act on the Organisation of Research and Technological Development, a research institute to examine the economic conditions and needs of insurance protection and for scientific and technical research on the causes of insurance events and on the possibility of preventing or reducing their consequences.
Security
(31) In order to reduce the impact of fluctuations in the amount of insurance premiums, the insurance undertaking may surrender part of the insurance with it to reinsurance abroad or reinsurance undertakings. In order to compensate for the reduction in the premium strain resulting from this, the insurance undertaking accepts insurance from other insurance undertakings and from reinsurance undertakings to reinsurance. It shall be entitled to transfer the collateral received to the further collateral (retrocession).
IV. Insurance Organisation.
Organisational principles
(32) The organisation of an insurance undertaking must ensure that it can have direct contact with policy holders, perfect cooperation with the national committees and with the services of the socialist economy, as well as with the organisational services and components of the insurance undertaking. In doing so, the method of organisation of the insurance undertaking must enable it to fulfil its task, as best and with the least labour force and the least cost in kind.
(33) The organisation of the insurance undertaking shall be based on the principle of effective decentralisation; for higher organisational bodies, only matters of a fundamental nature are concentrated or those which can be more effectively procured than for lower organisational units.
Territorial organisations
(34) The insurance company operates through its headquarters, regional institutes for Slovakia in Bratislava (hereinafter the Regional Institute) and branches.
(35) The headquarters shall be the central body of planning, management and control. It also carries out the operational activities reserved for it by the Organisational Regulations (paragraph 40).
(36) The Regional Institute is the regional authority of planning, management and control. It also carries out the operational activities reserved for it by the Organisational Regulations.
(37) The insurance company has one branch in the territory of each district, usually in the seat of the district or single national committee. However, the Ministry of Finance may provide for derogations from the provisions of the previous sentence where the operational interests of the insurance undertaking so require.
(38) Branches shall carry out the activities of an insurance undertaking within the territory of their jurisdiction unless it is procured by a central or regional institution.
(39) One of the branches within the territorial jurisdiction of the Regional National Committee, usually a branch in its headquarters (regional branch), also performs planning functions on a regional scale, manages and controls the activities of other branches in the county (regional branch). The Regional Branch may also carry out operational activities within the region reserved for it by the Organisational Regulations.
Internal organisation
(40) The Chief Executive (paragraph 41) shall, with the approval of the Ministry of Finance and after hearing the Central Committee of the Revolutionary Trade Union Movement - The Union of Employees in Money and Insurance, issue an organisational order, in particular setting out the breakdown of the headquarters, regional institutes and branches into the organisational units and determining their workload and relationship with subordination and supervisory responsibilities, so as to apply the principles for the management and organisation of an insurance undertaking under this Statute and to achieve the most cost-effective use of the workforce, operating facilities and the highest possible cost-efficiency.
Director-General
(41) The insurance company shall be managed and represented on the outside by the managing director, who shall be personally responsible to the Finance Minister. It shall act separately unless it is established that it needs the prior approval of the Ministry of Finance or of another body to take its decision.
(42) In particular, the Director-General shall be responsible for preparing, proposing and fulfilling the business plan and shall decide on the way in which the plan is to be implemented.
(43) The Chief Executive shall be represented by the Deputy Director, who shall also be responsible for a certain section of the insurance undertaking's activities.
(44) The Chief Executive and his Deputy Director are appointed and dismissed by the Minister of Finance after hearing the Central Authority of the Single Trade Union Organisation.
Regional Director
(45) The Regional Institute shall be managed by the Regional Director in accordance with the principal instructions and guidelines of the Chief Executive.
(46) The Regional Director shall be represented by the Deputy Director, who shall also manage a specific section of the Regional Institute's activities.
(47) The Regional Director and his Deputy Director are appointed and dismissed by the Finance Minister after hearing the Head of the Director and the Slovak Trade Union Council.
Common provisions concerning the Head of the Director, the Regional Director and their Deputy Directors
(48) Only Czechoslovak citizens who are loyal to, civil and morally righteous, and who are competent to the popular democratic office, may be the Head Director, Regional Director and Deputy Directors.
(49) The Chief Executive, the Regional Director and their Deputy Directors shall not engage in employment, function or activity contrary to the interests of the insurance undertaking.
(50) The Head Director, the Regional Director and their Deputy Directors shall take the oath of the Minister of Finance.
(51) The Chief Executive, the Regional Director and their Deputy Directors shall assume their duties and shall become employees of the insurance undertaking if they are not. Their function shall cease on the day on which they were withdrawn or on the day on which it was noted that they had surrendered.
Directors
(52) In the headquarters as well as in the Regional Institute, the directors manage the various activities. The Director shall be appointed by the Head Director - if he is a Director in a Regional Institute, on a proposal from the Regional Director - with the approval of the Ministry of Finance and after hearing the Central Authority of the Single Trade Union Organisation.
Common provisions on appointment
(53) The appointment and dismissal of the Head of the Director, the Regional Director and their Deputy Directors, and the appointment and discharge of directors shall not be subject to the rules on co-decision of the race council in the recruitment and dismissal of staff, and, where appropriate, to the involvement of that representative in the assignment of staff to posts and the prior agreement of the national committee in the negotiation and dissolution of employment.
Head of branches
(54) The head of branches in the Czech Republic shall be appointed Head of the Regional Director - Slovakia - after hearing the relevant Regional National Committee and the respective Regional Committee of the Revolutionary Trade Union Movement - the Union of Employees in Money and Insurance.
Agents
(55) On behalf of the insurance company, the employees of the insurance company may act in addition to the managing director, the regional director, their deputies and directors, authorised by the managing director - in Slovakia, the regional director. In the case of branches abroad, the agents shall act as head of the provisions; the provisions of these agents require the approval of the Ministry of Finance.
Liability
(56) The Chief Executive, the Regional Director, their Deputy Directors and their Directors shall be responsible for the damage caused to the insurance undertaking by the breach of their duties.
Meetings
(57) Important issues of the insurance undertaking shall be discussed at regular meetings involving the Head Director, his Deputy Director, the Regional Director, the Directors at the Headquarters and, where appropriate, the Head of Organisational Components of the Headquarters and the Head of Branch; they are organised by the managing director. Also be invited to the meeting by a representative of the Ministry of Finance and a representative of the Central Committee of the Revolutionary Trade Union Movement - the Union of Employees in Money and Insurance.
(58) The heads of regional offices shall convene, with the knowledge of the managing director - in Slovakia, with the knowledge of the regional director - similar consultations with the heads of regional offices in the region, if required. For advice, be invited representatives of the Regional National Committee and representatives of the Regional Committee of the Revolutionary Trade Union Movement - the Union of Employees in Money and Insurance.
Signature for the insurance undertaking
(60) It shall be signed as an insurance undertaking by adding to the name of the insurance undertaking the principal or his deputy to his signature indicating his office.
(61) The directors and other staff shall also sign on behalf of the insurance undertaking, authorised by the Chief Executive (procurers and other agents) by including their signatures under the name of the insurance undertaking.
(62) As regards the Regional Institute, it shall be signed by the Regional Director or his Deputy with the designation of his post as an insurance undertaking with the addition of the "Regional Institute for Slovakia '.
(63) As regards the Regional Institute, the directors of the Regional Institute and other staff authorised to do so shall also sign their signatures under the name of the insurance undertaking with the "Regional Institute for Slovakia '.
(64) The signatures for the insurance undertaking in the documents relating to the insurance relationship may be mechanically reproduced.
(65) The organisation rules shall determine the method of signature as regards branches. The scope of the authorization to sign in respect of the branch and the signature designs be posted in each branch.
V. Principles for insurance management.
(66) The insurance company follows the principles of the socialist economy. The most important of these are the planning applied in all its activities and the active participation of employees in the management of the insurance undertaking. They relate in particular to budget management, economy management, management concentrated in one person, effective decentralisation, operational management, encouraging employees' interests on the results of insurance business, personal responsibility, control and the principle of constant growth.
(67) All activities of the insurance undertaking shall be determined by a plan. The plan provides a solid basis for the insurance business by setting a clear target before it.
(68) The financial statement of the planned activity is the budget drawn up by the insurance undertaking and by which it manages.
(69) The heads of the organisational bodies and the organisational components shall be based on an informed work effort, creative capacity and employee initiative that they take to participate in the management of the undertaking. This participation is reflected in particular by friendly planning, socialist competition, socialist commitments, the submission of improvements, the monitoring of implementation of the plan, the detection of deficiencies and their criticism. The head of the staff is a group of Revolutionary Trade Union movement, with which the manager works as closely as possible.
(70) Each insurance undertaking's organisational unit and its organisational unit shall be managed by one manager alone within the scope of its competence.
(71) Each organisational body and each employee shall have only one immediate supervisor and shall only receive decisions and orders from it.
(72) The work must be managed in such a way that each employee is given his task precisely and in time.
(73) The insurance company must be operated operationally, it must avoid bureaucratic forms of work, be in constant contact with workers, constantly monitor and control its own operations and remove the causes of operational disorders without delay.
(74) The insurance undertaking must ensure effective control within the undertaking by its own authorities and, in addition, allow the supervision of its activities by both the supervisory authorities and its employees, who carry it out through the bodies of a single trade union organisation.
VI. Business plan.
(75) Economic activity in our state is governed by a single economic plan. The annual implementation plans shall be used for its implementation. Part of the implementation plan is the company plan of the insurance undertaking to which its activities are determined during the planning period. The business plan of the insurance undertaking shall be drawn up for the entire national territory and, in particular, for Slovakia.
(76) Compliance with the business plan is an essential task of the insurance company. The insurance undertaking must endeavour to fulfil the tasks set out in the plan with as little work force as possible and with the lowest consumption of both material and financial resources without prejudice to the insurance protection provided.
(77) The draft business plan shall be drawn up by the insurance undertaking in accordance with the guidelines of the State Office planning to prepare the plan and the indicative numbers established by it. All the organisational departments and branches of the insurance undertaking shall cooperate in drawing up the draft business plan, in particular by drawing up a friendly plan with the participation of all employees.
(78) The arrangements for drawing up the draft business plan, the formalities and the form of its individual parts, the procedure and deadlines for drawing up the proposal, the method of implementation and the control of the plan shall be laid down by the State Planning Office. The business plan shall be approved by the Ministry of Finance after consultation with the State Planning Office.
(79) The insurance undertaking shall ensure a continuous and consistent check of the implementation of the plan and shall include in that check every employee at its place of work and every manager within the limits of its competence.
(80) The insurance undertaking is obliged to carry out the tasks assigned to it during the economic period, even if they are not foreseen by the business plan. The tasks of the unforeseen plan shall be imposed on the insurance undertaking by the Ministry of Finance in agreement with the State Planning Office; However, without such a deposit, the insurance undertaking may provide the performance of insurance contracts above the aggregate amount foreseen by the plan.
VII. Jobs and employees.
(81) The insurance undertaking shall carry out its tasks through the collective effort of all its employees in accordance with the principles of cooperative cooperation and socialist mutual assistance. The expression of this collective effort is socialist methods of work (in particular socialist competition and improvement movement). That is why it is of course the duty of management, racing councils and all conscious employees to promote the development of socialist competition, which is a method of building socialism, to stimulate the growth of an improvement force, thereby drawing on the creative initiative of all employees.
(82) The head of each organisation body and each branch of the insurance undertaking shall rely on the staff during their daily work, keep them regularly informed of all relevant events in the insurance undertaking and draw on their experience. In doing so, he cooperates with the authorities of the Revolutionary Union Movement.
(83) The insurance company enters into contracts with the authorities of the Revolutionary Trade Union Movement in the Insurance Company (collective) by which employees, represented by the trade union organisation, undertake to carry out, or exceed, the specified partial tasks of the business plan. In doing so, the insurance undertaking shall assume an undertaking to take all measures enabling or facilitating the employees to carry out the tasks taken over.
(84) All employees are personally responsible for the economic performance of the tasks entrusted to them and with which they must also be fully acquainted. Staff members must be aware that the task of the insurance undertaking is to serve the socialist economy and the workers and that the methods of the insurance undertaking's activities in obtaining, managing and providing insurance benefits must differ from those of capitalist insurance companies. Staff must be guided by an effort to fulfil the tasks assigned to them as economically as possible.
(85) Insurance is a production service and a worker. This service may, as the main object of workers' efforts, remove only the essential number of workers. Therefore, the Chief Executive is responsible for the fact that the insurance company employs only as many workforce as necessary. In particular, it shall ensure that as many women as possible are employed in the insurance undertaking and shall create conditions for the full application of women and, where appropriate, persons who cannot be employed in the production process for reduced working capacity.
(86) The employment and wage ratios of the employees of the insurance undertaking shall be governed by the provisions applicable to the staff covered by the rules on government wage policy. The insurance company shall implement wage planning in accordance with special regulations issued on wage funds.
(87) Employees of an insurance undertaking shall be recruited and assigned to posts by the head of the managing director - in Slovakia, after consultation with the relevant racing board. They shall be released with the consent of that authority. Within the limits of the provisions of the Rules of Organisation, the Head Director - in Slovakia, the Regional Director - may delegate the recruitment of staff to the Head of Lower Organisational Services or Components. Any recruitment, transfer and dismissal of staff shall be carried out in close cooperation with the beader leader.
(88) The staff member shall be appointed with regard to his knowledge, experience, ability and fitness.
(89) The appellant shall receive a remuneration in accordance with the applicable rules for improving the efficiency of operations, improving the organisation or improving the insurance or reinsurance arrangements.
(90) Overtime must be limited to the necessary level.
(91) The insurance company is obliged to take the best possible care of its employees in the social, health, cultural and physical aspects in cooperation with the racing councils.
(92) In order to stimulate the material interest of employees in the results of the implementation of the business plan, the farm fund of workers, established under specific regulations, will be used.
VIII. Kadra care.
(93) The insurance company ensures proper and timely performance of tasks by the correct selection, deployment and education of cadres. In doing so, not only the professional qualifications of workers must be taken into account, but also their proportion to the popular democratic establishment. The beakers must be raised to know that insurance is not a business, but a service of working community.
(94) The insurance company is obliged to increase the professional maturity and political economic awareness of those employees who are capable of ideal and professional growth and constitute a source of responsibility in the insurance company through appropriate system of corporate training and labour schools. It is particularly important to select and train the part of the staff that is in daily direct contact with the public.
IX. Financial management.
Enterprise budget
(95) The insurance company runs by budget. The business budget is a monetary expression of the planned performance and needs of the insurance undertaking and their planned remuneration, both in the core and secondary activities. It expresses the planned stocks and their changes in the reserve, investment assets, insurance reserves, stocks and financial assets (balance sheet). It also includes the planned costs and revenues in the core business (insurance, reinsurance taken over, reinsurance and retrocession) and ancillary activities, as well as the profit and loss account (profit and loss account). The Regional Institute shall draw up a sub-budget for Slovakia. Branches shall draw up auxiliary sub-budgets within their respective limits.
Financial plan
(96) The corporate budget is the basis of the financial plan. The financial plan shall be drawn up by the insurance undertaking in accordance with the directives issued by the State Planning Office. The financial plan shall form part of the insurance undertaking's business plan.
(97) The financial plan shall be binding on the financial management of the insurance undertaking. The insurance undertaking shall endeavour to fulfil the tasks contained in the business plan as economically as possible without prejudice to the insurance protection provided.
Enterprise
(98) The control of the performance of the business plan is based on the company's totality, which includes business statistics, financial, operational, investment, stock, wages, calculations and accounting.
(99) The insurance undertaking shall keep company statistics on the state of insurance, its changes, its claims and its causes and its claims, with an indication of the factors relevant to the whole economy and the aspects of insurance in particular. In order to identify the calculation documents and other relevant circumstances, the insurance undertaking shall also conduct occasional statistical surveys in the state of insurance. The plan of corporate statistics and occasional corporate surveys is approved by the Ministry of Finance.
(100) The Regional Institute shall keep accounting records of the results of its activities in accordance with the Guidelines.
(101) When checking the amounts budgeted by comparing them with the facts, the causes of irregularities must be identified. The inconsistencies arising from ineconomy must be removed without delay.
Financial resources
(102) In order to carry out its tasks, the insurance undertaking shall raise funds mainly from insurance premiums and property income. The premium shall consist of the amount to be paid for the event, the costs associated with participating in the activities of the defence, the administrative costs and, where appropriate, the amount for the creation and maintenance of the reserve. The amount allocated to administrative costs shall be used by the insurance undertaking to finance its operations.
Special National Property Insurance Fund
(103) The insurance undertaking shall separately report insurance premiums and insurance refunds on national assets and insurance provisions intended to cover the insurance obligations of that insurance undertaking. This separation of items shall also be carried out in surrenders. Other cost and income items shall be broken down by key. For this allocation, reliable and verifiable supporting documents obtained from both operational accounting and statistics shall be used.
Insurance provisions
(104) The insurance undertaking shall comprise the following insurance provisions to cover the insurance obligations agreed with it and the reinsurance taken over:
(a) mathematical reserves which, together with future insurance, allow it to meet its obligations only in future due;
(b) the event reserves which are intended for the future repayment of outstanding insurance claims.
These insurance provisions shall also be made up of the insurance undertaking for the reinsurance and retrocession. The policies for setting insurance provisions are issued by the Ministry of Finance.
Reserve Fund
(105) In addition to the insurance provisions, the insurance undertaking shall establish a reserve fund equal to the average annual insurance premiums on property and accident insurance over the last three years in a manner determined by the Ministry of Finance. Within it, the insurance undertaking shall separately constitute a reserve fund for the special insurance fund for national assets; its initial amount on 1 January 1951 shall be determined by the Ministry of Finance.
Storage of financial assets
(106) The insurance company deposits its funds with the Czechoslovak State Bank; the deposit with it maintains the standard liquidity needs needed to operate the insurance undertaking. It shall impose amounts in excess of this need in terms of the financial plan.
(107) Property intended to cover insurance obligations of insurance undertakings contracted with its branches abroad and to cover reinsurance obligations accepted from insurance and reinsurance undertakings abroad as well as domestic insurance obligations payable abroad shall be deposited in foreign values in accordance with the guidelines of the Ministry of Finance.
Financial statements
(108) By 31 May each year, the insurance undertaking shall submit to the Ministry of Finance the accounts and the annual report for the previous year for approval. The Ministry of Finance shall determine the formalities for the annual report.
(109) The financial statements are the profit and loss account of the special insurance fund for national assets and the sub-accounts for the activities of the Regional Institute.
(110) The profit of the insurance undertaking after the necessary subsidy to the reserve fund, after payment of the amount due to the single fund of workers and after deduction of the amounts determined by the Minister of Finance for the special purposes of insurance and for the purpose of the company's acquired and protective activities shall be paid to the Fund of the National Economy within 14 days of the approval of the accounts by the Ministry of Finance. Within the same period, the insurance undertaking of the NFE shall pay an amount by which the reserve exceeds the maximum amount.
(111) The reserve shall pay the losses and amounts by which the event transactions in property insurance exceed their planned amount; It shall be subject to the following conditions:
(112) The use of profit, loss payment and subsidy and the use of the reserve from the difference between the planned and actual sum of insurance premiums shall be treated separately for the special insurance fund for national assets.
X. Cooperation with national committees.
(113) The insurance company can only perform its tasks well in close cooperation with national committees. The national committees shall monitor the activities of the insurance undertaking and shall contribute their incentives to remedy the deficiencies identified.
(114) In agreement with the Ministry of the Interior, the Ministry of Finance shall provide for the cooperation of insurance undertakings with national committees.
XI. Top management and supervision of insurance company.
(115) The insurance company is subordinate to the management and supervision of the State carried out by the Ministry of Finance.
(116) The head of the insurance undertaking must be in constant contact with the Ministry of Finance.
(117) In the exercise of senior management and supervision, the Ministry of Finance shall, in particular, be responsible for:
(a) ensure that the undertakings of the insurance undertaking are permanently fulfilled;
(b) approve the supporting documents and principles under which the insurance undertaking negotiates the insurance and, if the general interest so requires, amend those documents and principles with effect and for valid insurance;
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Regulation Information
| Citation | Decree of the Government No. 53 / 1951 Coll., issuing the status of Czechoslovak Insurance Company, National Company |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 21.07.1951 |
|---|---|
| Effective from | 21.07.1951 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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